Kuwait-based logistics giant Agility confirmed on Tuesday that it applied for a licence to establish a digital bank.
The move is part of the company’s “ongoing focus on digital initiatives”, according to vice chairman and chief executive Tarek Al Essa in a statement to the Dubai Financial Market.
However he said the application is in its early stages, adding: “Agility has requested a licence to establish a digital bank but there is nothing material at the moment.”
The statement came in response to a report by Kuwait’s Al Rai newspaper on Agility’s plans which said the application includes an emphasis on technical aspects, cyber security, operational risks and measures to combat money laundering and terrorism financing.
The trend towards digital banking is gathering pace in the Gulf region.
In the UAE, Al Maryah Community Bank has become the first digital bank to serve UAE customers after launching its app while Emaar founder and chairman Mohamed Alabbar has previously announced that he will head Zand, the first digital bank in the world to provide both retail and corporate banking.
A survey from Boston Consulting Group (BCG) in October last year revealed that 87 percent of respondents in the UAE would be willing to open an account with a branchless digital-only bank.
Last year, Abu Dhabi investment firm ADQ revealed plans to set up a digital bank with an initial capital of AED2 billion after obtaining the legacy licence of First Gulf Bank.
Source:https://www.arabianbusiness.com/banking-finance/467501-kuwait-logistics-giant-agility-applies-for-licence-to-run-digital-bank