System compatible with int’l principles, standards
KUWAIT CITY, Jan 20: The Central Bank of Kuwait (CBK) is keen on establishing a new Payments System Company capable of meeting the requirements of comprehensive development within the framework of its ambitious projects to develop the banking business and optimal application of the Kuwait National Payments System Project, reports Al-Qabas daily.
The daily quoting a reliable source added the trends come within the continuous development processes led by the Central Bank on several levels, whether in its infrastructure as a watchdog and regulator or at the level of banking sector that seeks to enhance its ability to review global changes and real challenges facing the industry.
He pointed out that the yet-to-be established company will include in its list the same banks and finance companies with broader and a more comprehensive operational purposes than those in KNET.
He indicated the new company is compatible with eight ambitious sub-projects that will be launched in two phases in 2020 and 2021 within the Kuwait National Payments System.
The source pointed out that Kuwait National Payments System Project includes an integrated set of electronic payment systems that are compatible with international principles and standards related to the payment and settlement processes among various participating bodies.
It includes an automatic clearing system, wages protection system, and national clearing system for payments through smart devices, real-time system for total settlements, real-time system for retail payments, electronic system for bill display and payment, financial claims management system, digital currency system, monitoring system, and quality control.
He pointed out that the new requirements within Kuwait National Payments System Project involve addition of new activities that aren’t currently available on KNET.
Therefore, it may be better to establish a company, and perhaps, companies that are able to meet those needs, and in parallel with that creates a kind of competition between two companies to provide better services to customers, and to achieve greater returns for owners.
He observed that KNET will continue to develop the application of its business model, which is currently limited to “points of sale” and ATM as a gateway for payments to bank customers and inter-bank settlements.
It will work to keep abreast of the radical developments taking place in the world and represent a real challenge to the current banking and financial system related to “Vintec” in all its forms especially in light of the entry of major technology companies into the line of providing cross-border banking and financial services that are not restricted by the traditional regulatory systems.
It is noteworthy that local banks owners of KNET and 11 banks recently agreed to include the Central Bank of Kuwait as the company’s shareholder to be in direct contact with its development mechanisms to keep pace with the electronic and digital payments system.
Eight projects within the Kuwait National Payments System
1- Automatic clearing system.
2- Wages protection system.
3- National clearing systems for payments through smart devices.
4- Real-time systems of gross adjustments and retail payments.
5- Electronic systems for viewing and paying bills.
6- Financial claims management system.
7- Digital currency system.
8- Quality control and monitoring system.