Central Bank Opens Door to Open Banking Services in Kuwait
Central Bank of Kuwait issues final regulatory framework for open banking to enhance digital transformation and innovation
Translated by Qiyas from الراي — Original source
The Central Bank of Kuwait has issued the final regulatory framework for open banking, a move aimed at developing banking and financial services in Kuwait, enhancing digital transformation, and enabling local banks and fintech companies to offer innovative products and services that align with global developments in the financial technology sector.
In a statement, the Central Bank clarified that the issuance of the final framework followed a thorough review of all comments and feedback received regarding the draft released in June 2025, reflecting its commitment to promoting transparency and stakeholder engagement.
The framework aims to regulate open banking activities by establishing supervisory directives, as well as security, technical, and operational standards, in line with global best practices, and by providing appropriate infrastructure for Kuwait’s banking and financial sector.
It noted that the implementation of open banking represents a qualitative shift in the nature of services offered by the banking and financial sector, allowing local banks to securely share customer data with licensed account information service providers and payment initiation service providers, authorized by the Central Bank of Kuwait, based on explicit customer consent.
This system enables the development of a diverse range of services, including providing customers with consolidated information about their bank accounts across various local banks, tracking expenditures, creating suitable savings and spending management plans, and facilitating loan and guarantee letter procedures.
The services also include the ability to create payment orders directly from bank accounts, view available banking products and services, and compare them, helping customers choose the products that best suit their needs.
The regulatory framework aims to strengthen collaboration between local banks and fintech companies, thereby supporting the development of an innovation-friendly environment in the financial sector, expanding the scope of digital services, improving customer experience, and enhancing the efficiency of financial transactions.
