Kuwait Open Banking Framework (Draft Version 1.0)

 

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As the strategic importance of technology grows in financial services and the payment ecosystem in Kuwait, Open Banking (OB) serves as an emerging initiative that shall help stimulate innovation across Kuwait’s financial services sector by enabling the proliferation of standardized, consent-driven, data-rich, collaborative, secure, and customer-centric digital banking services.

Building on the principles of customer control and opening up data, The Kuwait Open Banking Framework (OBF) has been developed to assist the financial institutions including Banks and FinTechs in providing Open Banking products/services to their customer base.

Open Banking is the way forward in Kuwait with the potential to reshape Kuwait’s banking environment, entailing significant value for the regulators, banks, Open Banking Service Providers (OBSPs), and customers.

Guiding Principles for Kuwait Open Banking Framework

The Kuwait Open Banking Framework has been defined under 4 guiding principles which have been defined under:

  1. Utility: Focus on delivering true value without placing undue burden on any participant (e.g., cost, risk exposure)

  2. Transparency: Ensure customers are fully informed of their rights and responsibilities regarding the transfer, possession, and use of their data  

  3. Security: Balance customer convenience with safety and security

  4. Adoption: Balance the net cost to the economy, participation, and speed to market with the scope of products and/or data

Documents as part of the Kuwait Open Banking Framework:

All participants should refer to the following documents as part of the Kuwait Open Banking Framework:

  1. Regulatory Instructions (Instructions for Regulating Open Banking, OBSP On-boarding, Claims & Dispute Management)

  2. Customer Experience Instructions (Account Information, Payments and Other Use Cases)

  3. Consent Management Instructions

  4. API Design Principles

  5. Account Information, Payments and Other Use Cases Technical API Specifications including Swagger Codes

  6. Security Instructions

  7. Operational Instructions

  8. Monetization Instructions