• Banking experience is quite different from what it was a decade ago
  • Banking sector is a vital contributor in achieving Kuwait Vision
  • Investment in FinTech startups across MENA steadily surged

Kuwait: KFH-Group CEO, Mazin Saad Al-Nahedh said innovation is instrumental pillar in executing Kuwait finance house (KFH) strategy, indicating the KFH is one of the first banks in Kuwait to embrace the digital transformation while endeavoring to enhance systems by deploying innovative solutions, offering world class products and services in a user-friendly manner.

Al-Nahedh’s statement was made during his participation in Kuwait Investment Outreach Roadshow themed “Discover the Opportunities in a Transformed Economy”, held in Silicon Valley, USA.

He added that the recent rapid developments and the growing technology penetration in the banking industry confirm that financial services are changing and for the better. Technology helps banks to better know their customers, anticipate their needs, and offer products and services most relevant to their individual requirements. Digitization can’t replace banks, yet plays a key role in banking transactions and payment solutions.

He said “in order to achieve Kuwait’s Vision 2035, the banking sector, as a whole, has a significant role to play to help transform the country into a world-class financial and commercial center.  By fully mobilizing the talented pool of highly educated young Kuwaiti nationals, the banking sector is a vital contributor in achieving this vision.”

He said that today’s banking experience is quite different from what it was a decade ago. For customers, their experience is undergoing a revolution due to technology and innovation.

Al-Nahedh continued “digital technologies are not only knocking at our door but also entered with a “full swing” into our industry as well as our daily lives. New Financial Technology platforms and tools have emerged to contribute to changing the banking roadmap. “Fintech” businesses are aiming to provide financial services by making use of software and modern technology across all types of functions. Previously, FinTech was mainly used for back-office functions by leveraging software to help bank personnel handle accounts, execute transactions, manage customer databases, etc. Today, FinTech has transformed how banks operate. Every digital transaction, be it foreign currency exchange, money transfers, investments, or online shopping, is possible at our fingertips thanks to FinTech.

Technology-focused funds

He pointed out that KFH-Group through its investment arm, KFH Capital, owns technology-focused funds as part of their assets under management. One of these funds is KISP Ventures, which is a $35 million Shariah-compliant venture capital fund that invests in early-stage technology companies across various sectors in the MENA region.

He added that like any new technology, FinTech can be seen as both a threat and an opportunity. On one side, FinTech may be seen as a threat to certain revenue streams that banks may generate. However, as opportunities, FinTech offer many benefits to identify emerging digital capabilities and technologies that customers embrace and acquire. This reshapes the way banks in our region design their products and services, thus optimizing cost, mitigating risk and increasing efficiency.

Promising Future

Al-Nahedh explained that there are promising numbers in our part of the world. Today, the current MENA FinTech market is estimated at $2B and is expected to witness an annual growth of $125M by 2022. Meanwhile, GCC FinTech companies account for 7% of all FinTech business in the MENA region, and are reaping the benefits of catering to the ever-connected millennials there. Furthermore, over the past years, investment in FinTech startups across MENA has increased steadily.

He added “From our perspective, the key take-away is not merely the investment volumes, but rather the huge value which is being added to the banking industry, especially making things much more convenient for our customers.”

It is worth noting that there are over 100 FinTech startups in MENA across several diverse sectors such as payment gateways, digital banking, crowd funding, cryptocurrency, and wealth management.

Islamic finance & FinTech

As in banking, Al-Nahed indicated FinTech’s penetration into Islamic finance is still in its infancy and there is still significant potential for further deployment of evolving FinTech and Artificial Intelligence AI. From a consumer perspective, FinTech addresses individual needs with better experience and at lower cost and easier access, over the internet, mobile devices and social media. Therefore, the biggest potential impacts of FinTech on Islamic finance would be the increase in reach of Islamic financial services, as an alternative to conventional finance, especially in places, where it is yet to enter and the standardization of rules and regulations, which currently vary across borders.

He reiterated that KFH has succeeded in launching several innovative services. KFH lately implemented Chatbots on the Bank’s banking platform be it online or mobile which is available to customers 24/7, this improves service especially to our millennial customers. KFH implemented a Robotic Process Automation (RPA) program to streamline internal processes for customer financing transactions increasing efficiency and reducing processing time. Also, KFH launched the XTM that provides customers with unique self-service banking experience, “KFH Xpress” for Instant cross border money transfers, “cardless” cash withdrawals using QR codes or the mobile number or simply using ID card. This is in addition to the KFH-Wallet, a ‘Mobile Wallet Payment Service which allows customers to store specific banking cards on their mobiles. More recently, KFH signed an agreement to join RippleNet for Cross-border Instant Payments which uses blockchain technology. We are implementing SKIPLINO which is a remote queuing/booking system to improve our branch visit experience. KFH unveiled KFH Go, the first-of-its-kind self-banking station. It is first fully-automated 24/7 e-branch in Kuwait.

-Ends-

Kuwait Finance House (KFH)

KFH was established in Kuwait in 1977 and is enlisted in the Kuwait Stock Exchange. KFH Group is a global pioneer in the field of Islamic banking services, where it offers a wide array of Islamic products and services, not to mention a high standard of innovation and customer service.

KFH manages its operations in the GCC, Asia, and Europe through over 480 branches, including KFH-Turkey, in order to offer services for the bank's customers in Turkey, Malaysia, Saudi Arabia, Bahrain, Germany, and the UAE.

KFH's mission is to achieve highest levels of excellence and innovation in the field of customer service, while developing common interest for all those concerned with the financial institution. KFH's vision is to spearhead the global development in Islamic financial services, and to upgrade the bank into the level of becoming the most sustainable profitable Islamic bank in the world.

KFH's values include cementing leadership through all its businesses, including leadership in the Islamic banking services worldwide, through innovation, superior customer service and the development of its employees. In addition, KFH is committed to all its procedures, and to setting up long-life partnerships with the concerned authorities.

For more information, please visit: www.kfh.com 

© Press Release 2018

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