NBK is redefining future of finance by integrating digital services into people's lives: Al-Kharafi

03/11/2025 03:53 AST

Mohammad Al-Kharafi, Group Chief Operating Officer, Group Operations, Technology and Data at National Bank of Kuwait (NBK) took part in a panel discussion titled "Gulf Fintech, slowing down or maturing?" held as part of the fourth edition of the MoneyTech, hosted by Aljarida Summits at the St Regis Kuwait.

In his remarks during the session, Al-Kharafi emphasized that the fintech sector in the Gulf has undergone a profound transformation over the past decade, reshaping the way people save, pay and invest. He noted that NBK has played a pivotal role in this journey since its very inception.

Sustainable integration
"What we are witnessing today is not a slowdown in the Gulf's fintech sector, but rather a transition into a new phase of maturity, one in which fintech is evolving from rapid innovation to sustainable integration. While the early stages focused on experimentation and financial and digital inclusion, the current landscape is shifting toward sustainability, expansion and greater alignment of efforts, with investors now prioritizing viable and profitable business models instead of merely expanding user bases," Al-Kharafi said.

"We are now in a stage where innovation has become an integral part of the financial infrastructure itself, a sign of maturity, not slowing down." He pointed out that NBK views this stage as an opportunity to strengthen the financial ecosystem by combining the agility of fintech companies with the institutional strength, trust and governance that characterize the banking sector.

Local and regional leadership
Al-Kharafi emphasized that NBK stands as one of the pioneers of digital transformation both in Kuwait and across the region, driven by significant investments in technology, data and digital channels. He explained that - from mobile banking services and digital onboarding to advanced analytics and intelligent automation - the Bank continuously works to redefine customer experience. He added that NBK's robust digital infrastructure has also enabled it to expand its partnerships with fintech firms efficiently and securely.

"At NBK, technology is not merely a tool, it is an integral part of how we think, operate and deliver value," he added. Furthermore, Al-Kharafi pointed out that the Bank's recent acquisition of a majority stake in UPayments, one of Kuwait's leading fintech companies, clearly reflects NBK's strategic direction toward building a more integrated financial ecosystem. This partnership combines the Bank's scale, strength and capabilities with UPayments' agility and innovation, paving the way for a new generation of digital solutions and services across Kuwait and the wider region.

He explained that UPayments, as a leading Kuwaiti company specializing in digital payment solutions for individuals and businesses, plays a pivotal role in supporting Kuwait's shift toward a cashless economy. He also noted that the partnership between NBK and UPayments combines the bank's extensive reach and regulatory expertise with the company's agility and innovative spirit, unlocking new opportunities in e-commerce, digital wallets, and merchant and business-focused payment solutions. The partnership also reflects NBK's commitment to supporting and advancing the local fintech ecosystem, helping transform startups into sustainable entities with the capacity for regional expansion.

"NBK's acquisition of a majority stake in UPayments marks a strategic milestone in the Bank's ongoing digital transformation journey," he confirmed.

The role of regulatory authorities
On the regulatory front, Al-Kharafi stressed the importance of the role played by regulatory authorities across the Gulf, including the Central Bank of Kuwait (CBK), in maintaining a balance between innovation and financial stability. He praised the Central Bank of Kuwait's pivotal role in enhancing the resilience of the financial sector and supporting regulatory initiatives such as the FinTech Sandbox, which helps accelerate and integrate digital banking services.

He also highlighted that Kuwait's fintech sector is rapidly keeping pace with global markets, witnessing a growing number of players such as digital payment facilitators, insurtech firms, and P2P platforms, among others. He explained that CBK has created an enabling environment for fintech innovation through a series of initiatives, including updating electronic payment regulations and issuing guidelines for digital banking services. It is also working toward establishing a comprehensive Open Banking Regulatory Framework.

Moreover, Al-Kharafi noted that NBK believes clear regulatory frameworks are a key enabler of responsible and sustainable growth, strengthening Kuwait's overall operating environment. He added that robust governance and strict compliance enhance trust among clients and investors, establishing a solid foundation for sectoral growth. He also emphasized that strong regulation does not limit innovation, it safeguards it and ensures its continuity.

The future
In his remarks during the panel discussion, Al-Kharafi discussed the key features of the next phase in the development of fintech in the Gulf, noting that it will focus on seamlessly integrating financial services into everyday life - from e-commerce to transportation to smart services.

Discussing NBK's outlook and future direction, Al-Kharafi noted that the bank's extensive regional presence offers a unique advantage in expanding the scope of innovation and connecting it across markets. As for AI, Al-Kharafi said: "We believe that artificial intelligence and machine learning are transforming banking efficiency and enabling more dynamic, responsive operations. In line with this vision, NBK has taken bold steps forward, most recently through the successful rollout of Microsoft Copilot, empowering its employees to leverage the tool across all operations."

"By integrating banking infrastructure, data analytics and financial innovation, the Bank is building a robust foundation for a connected, customer-centric digital financial ecosystem. We are not merely digitizing banking services - we are redefining the relationship between financial services and people's everyday lives," he added.

Al-Kharafi affirmed that this is the most pivotal stage, a moment where innovation meets scale and collaboration drives lasting economic impact. He stressed that in a world where change is accelerating, innovation alone is no longer enough; true success lies in the ability of institutions to embed innovation within their operational frameworks and transform it into sustainable value.

"From this perspective, NBK views partnerships with fintech companies not merely as technological collaborations, but as a new model for redefining the financial sector itself. The synergy between the agility of startups and the institutional strength of banks creates a smarter, more scalable ecosystem - one that is closer to customers' everyday needs and contributes to building a more connected, innovative, and resilient digital economy in Kuwait and across the region," Al-Kharafi concluded.

Kuwait Times