Kuwait’s Competition Protection Authority is looking into requests from 3 alliances who seek to establish digital banks in the country. This is in addition to 7 listed companies already in the country. Two digital bank licenses are expected to be granted by the end of 2022.
As per sources, the requests from the three alliances include an alliance formed between Boubyan Bank and Zain Telecom Group as well as other undeclared’ investors. The second alliance includes “Ooredoo”, Warba Bank, the Kuwait Investment Company and Al-Manar Finance and Leasing Company. The third alliance includes Kuwait and Middle East Financial Investment Company with ‘undeclared’ investors. There are also a set of requests to establish digital banks submitted by unlisted entities.
As per the news, the Kuwait Central Bank will only approve two licenses for two independent banks and will be announcing the names at the end of 2022.
In the UAE, the number of adults with a neobank account grew to 19 per cent this year, up from 17 per cent in 2021. While an additional 15 per cent plan to open a neobank account within 12 months, taking adoption to a forecasted 34 per cent in 2023, according to an online survey of 1,015 internet users released by finder.com, the UK-based comparison platform.
Currently, there are a number of digital banks operating in the UAE with some of them launched by traditional lenders. These include Mashreq Neo by Mashreqbank, Liv by Emirates NBD, Yap by RAK Bank, Amwali by Abu Dhabi Islamic Bank and digital banks Al Maryah Community Bank and Zand among others.
In Saudi Arabia as well Saudi banks are betting big on the digital future. In the first three months of 2022, 13 bank branches and 81 ATMs were closed in a further sign of the growing digitization of the sector as per data from the Saudi Central Bank.
