The Central Bank of Kuwait (CBK) has issued guidelines for establishing digital banks, with the hope of approving new digital bank applications by the end of the year.
As the Arab Times reported Thursday (Feb. 3), CBK Governor Mohammad Y. Al- Hashel stressed that guaranteeing the smooth operation of banking business was a key priority.
“As the banking industry undergoes transformation, new business models enable better and more accessible services to customers thanks to the immense potential of digital technology,” Al-Hashel said in a statement.
The bank has opened the process for applications until June 30 of this year. Al-Hashel said the guidelines cover the definition of digital banks, their legal framework and licensed activities, as well as phases and procedures for setting up digital banks.
Read more: Jordan’s Central Bank Considering CBDC
This news comes just two days after another Gulf nation, Jordan, said its central bank was considering creating its own central bank digital currency (CBDC) that would be linked with the country’s national currency, the dinar.
Also this week, the British digital bank Monzo said it is ready to open the app-based accounts and onboard eligible customers in the U.S.
Learn more: UK Digital Bank Monzo Officially Lands in US
During a beta launch, Monzo said it signed thousands of American customers and processed millions of dollars of transactions, getting back actionable feedback and insight as it worked with the community.
“You gave us amazing insight on the problems you’re facing in your financial lives, and your feedback directly led us to launch features like salary sorter. It’s now easy to divide up your paycheck in a few taps, so your spending, savings and bills are neatly separated as soon as you get paid,” U.S. Product Manager Thomas George said in a company blog post.
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