Zain, the leading digital service provider in Kuwait, announced its sponsorship of the Fintech Exhibition that formed part of the inaugural International Banking Conference: Shaping the Future, that took place on 23 September at Kuwait City’s Four Seasons Hotel. The event was organized by the Central Bank of Kuwait (CBK) under the patronage of H.H. the Amir Sheikh Sabah Al Ahmad Al Jaber Al Sabah.
During the exhibition, Zain showcased its digital capabilities, which include the latest and most innovative fintech applications and platforms. Mobile banking services play an important role in people’s lives, and Zain has introduced many innovative initiatives to manage customers’ needs, establishing its fintech credentials. These initiatives are centered around investing in data, value management, and digital transformation.
Notably, Zain and Boubyan Bank announced plans for the development of the first digital platform for Islamic banking services during the International Banking Conference, marking the first digital partnership of this nature in the region made between one of the biggest regional telecom entities, and one of the most innovative banks with respect to offering advanced digital banking services.
Upon receiving approval from the CBK, it is expected that the digital partnership will contribute towards creating a comprehensive tech community and the establishment of the first digital bank, given the huge potential both parties hold within the ICT and digital banking services spaces. The strategic partnership will also help create a business ecosystem that inspires innovation.
Bader Al-Kharafi, Zain Vice-Chairman and Group CEO commented, “Our digital partnership with Boubyan Bank will introduce an advanced platform to encourages the development of digital banking services. It will help support startups and emerging enterprises and contribute to the incredible digital innovation taking place across the region.”
Al-Kharafi continued, “Zain has been keen to expand its role in the fintech arena and having undertaken a due diligence exercise, decided to follow a strategic partnership model with a leading financial services institution. Boubyan Bank proved to be a great match as our strategic vision met the ambitions of the bank’s executive management with respect to the development and growth of digital banking services.”
The leap offered by fintech services within the financial industry, along with the financial inclusion it introduces are attractive elements to Zain as they encourage greater competitiveness. The collaboration with Boubyan Bank reflects the two companies’ desire to advance digital transformation in the region and given Zain’s 50 million customer base, this partnership will work towards creating financial inclusion on a significant scale.
The agreement between Zain and Boubyan Bank foreshadows the emergence of more investment opportunities in the fintech area, and more marriages between banking institutions and telecom operators. Digitization is accelerating at an incredible pace, giving rise to social and economic benefits that one could have scarcely predicted a decade ago. The rise of fintech is one area experiencing exponential growth, and it is an area Zain Group has participated in since 2016.
Fintech services remain under-penetrated in the region, representing a major challenge for the establishment of startups. Even so, there are positive expectations for the growth of online payments in the future, led by the increasing usage of online banking services, as well as the traction being gained by fintech applications.
Al Kharafi recognized the efforts exerted by the Governor of the Central Bank of Kuwait, Dr. Mohammad Al Hashel stating, “We sincerely appreciate the Governor’s contribution in regulating and advancing Kuwait’s infrastructure in preparation for a fintech future. These developments serve the country’s vision to transform into an international financial and commercial center.”
A year ago, CBK announced the issuance of special instructions regarding online payment providers, which specified the responsibility of such companies and their operation within Kuwait, as well as establishing the legal and regulatory frameworks to govern their activities in the country.
Fintech not only makes sense from an economic perspective, it has the means to literally transform the lives of people across communities, and both these outcomes are of central importance to Zain. The company’s activities in this burgeoning area commenced with the award-winning Zain Cash mobile money platform in Jordan and Iraq that among many other vital benefits to the community, has recently facilitated the disbursement of monetary support in Iraq through eye scans to vulnerable individuals by the UNHCR. Furthermore, Zain’s recently launched micro-lending platform Tamam in the Kingdom of Saudi Arabia is set to have many positive economic and social impacts.
Telecom service providers are in a privileged position to be able to either hinder the progress of fintech or help raise its development to even greater heights to the benefit of society at large. Zain relishes its position to be able to innovate with leading partners in this dynamic and transformational area.
Zain is determined to continue investing in fintech, either directly or through affiliates and partners so that that company is better able to fast-track the development of solutions, generating social and economic growth. Helping to achieve Sustainability Development Goals as set out by the UN brings enormous gratification and Zain looks forward to continuing to play an active and productive role in the domain.