In a strategic move to align with global FinTech trends, the Central Bank of Kuwait (CBK) has issued a draft Open Banking Regulatory Framework, signaling its commitment to fostering innovation in the financial services sector.
According to an official statement, the framework is part of the CBK’s broader Open Banking Project, an initiative aimed at introducing structured regulations and standards covering security, technical, and operational aspects aligned with global best practices. The objective is to empower local banks and licensed FinTech companies to develop and deliver Open Banking services across Kuwait.
Open Banking represents a significant evolution in the financial ecosystem, enabling banks to securely share customer data with third-party providers subject to explicit customer consent. These services promise to bring about greater transparency, enhanced customer experience, and new financial products, including unified account views, smart budgeting tools, and faster loan processing. Customers will also benefit from easier comparisons of banking products and the ability to make real-time payments for bills, e-commerce, and peer-to-peer transfers both domestically and internationally.
The draft framework is also a key component of Kuwait’s digital transformation agenda, supporting the goals outlined in the “New Kuwait 2035” vision. By encouraging collaboration between traditional banks and FinTech innovators, the CBK aims to build a robust financial infrastructure and boost the overall competitiveness of Kuwait’s banking sector.
In preparation for the framework’s rollout, the CBK has already authorized a FinTech firm to pilot Open Banking solutions within its Regulatory Sandbox (Wolooj). Insights from this controlled environment are being incorporated into the final regulations to ensure practical and effective implementation.
CBK has opened the draft for public consultation, inviting stakeholders to review and submit feedback within four weeks of its release. The draft framework is accessible on CBK’s official website, with comments to be directed to a designated email address.
Once finalized, the regulatory framework will be implemented in a phased manner, allowing for comprehensive testing and validation to ensure security and service integrity.
The CBK extended its appreciation to the Kuwait Banking Association and local FinTech companies for their continued support and collaboration in advancing the Open Banking agenda.
This initiative marks a pivotal step forward in Kuwait’s journey toward a more connected, competitive, and digitally enabled financial landscape.
