The Central Bank of Kuwait (CBK) has approved the soft launch of a new product in the local market within its Regulatory Sandbox by applying it to a group of volunteer customers to evaluate the product before the final approval thereof. This approval is part of the CBK’s plan to create an enabling environment for new fintech solutions in the State of Kuwait to deploy more innovative business models.
According to CBK, the new product is an e-wallet that targets domestic workers and employers in Kuwait. Employers can use it to quickly and easily pay wages and bonuses electronically, and domestic workers can keep their money in a safe and electronic mode, use ATMs to withdraw money from their e-wallets, transfer it to other workers who have signed up for the service, or use licenced exchange companies in the State of Kuwait to make international money transfers.
Additionally, CBK noted that by delivering financial services to Kuwait’s unbanked low-income group, more so in a way that makes it easily accessible through their smartphones, the new product helps to broaden financial inclusion.
The apex bank expressed its eagerness to assist new fintech-based business models that offer value for both the user and the local market as a whole. He lauded the Regulatory Sandbox Framework’s function in fostering innovation without endangering the financial system by enabling the testing and development of such novel financial products.
As part of its contribution towards the actualisation of Kuwait’s Vision 2035 “New Kuwait”, the Central Bank of Kuwait is determined to continue playing its role as a catalyst for financial technology.
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