KUWAIT CITY: The Operations and Information Technology Group at National Bank of Kuwait (NBK) serves as the driving force behind the bank's digital transformation, a cornerstone of its long-term strategy. Acting as the bank's central hub of innovation and strategic thinking, the group spearheads efforts to reinforce NBK’s leadership in delivering cutting-edge banking solutions and exceptional digital products and services. This commitment ensures the bank stays at the forefront of the rapid technological advancements reshaping the global banking landscape.

Throughout 2024, the Operations and Information Technology Group sustained its trajectory of success, introducing several innovative projects across various markets. These initiatives significantly enhanced the quality and scope of services and products offered by the Bank, reinforcing its commitment to delivering exceptional value to its customers.

Mr. Mohammad Yousef Al Kharafi, Head of Operations and Information Technology Group at NBK, emphasized that NBK's strategy is built on three core pillars. The first pillar is customer centricity, leveraging technology to deliver personalized, intuitive, and seamless experiences across all touchpoints. The second pillar focuses on operational efficiency, achieved through intelligent process automation, optimization, and the development of scalable platforms to reduce costs and enhance flexibility. The third pillar emphasizes data-driven decision-making, with a strong focus on building robust data analytics capabilities to derive actionable insights, improve decision-making, and unlock new business opportunities.

Al-Kharafi added that NBK's Operations and Information Technology Group has outlined a clear roadmap and a phased approach to achieving its goals, which consists of three key stages. The first phase is digital empowerment, focused on modernizing platforms and building a robust IT infrastructure to support future innovation. The second phase centers on innovation and integration, expanding the bank's digital offerings through advanced technologies such as artificial intelligence, cloud computing, and Application Programming Interfaces (APIs), while ensuring seamless integration across various channels. The final phase is continuous development, fostering a culture of flexibility and innovation where technology, processes, and people continuously adapt to evolving customer needs and market dynamics.

He also pointed out that in 2024, NBK successfully upheld its leadership in Kuwait and the region. This achievement follows substantial investments in technology and digital banking services over recent years. He also highlighted the bank’s commitment to anticipating the future of financial technology and staying aligned with the latest global advancements in the sector.

Moreover, Al-Kharafi emphasized that earlier this year, the bank launched a transformational initiative designed to reshape its technological approach, strengthening institutional resilience through agile methodologies. He explained that this initiative resulted in a thorough restructuring of the group's technology ecosystem, significantly boosting the bank's capacity to swiftly and efficiently respond to the dynamic demands of its diverse business sectors.

“This step marks a significant milestone in the bank's journey towards realizing one of its core objectives: becoming a more agile and responsive organization. It reinforces our optimism about the transformative impact of these changes, which are poised to enhance the bank's future success. By improving operational efficiency, these transformations will further reinforce NBK's position as a leading institution locally, regionally, and globally,” Al-Kharafi said.

He further explained that the Operations and Information Technology Group is committed to translating NBK’s digital transformation strategy into clear objectives. In addition, to prioritizing training and knowledge sharing, the bank's strategy emphasizes fostering a digital culture and mindset across the entire organization, with over 7,000 employees actively engaged. The strategy also includes providing all employees with access to a digital learning library, covering key topics such as innovation, digital product development, digital payments, fintech, open banking, agile methodologies, and digital customer experience.

Al-Kharafi also highlighted the Group’s dedication to tracking the latest global digital trends impacting the banking sector and creating insightful research and reports that capture the trends shaping the industry, including global best practices, gaps, and opportunities. In partnership with the Bank's Design Center, the Operations and Information Technology Group prioritize delivering an outstanding user experience tailored to the specific needs of the bank’s users. This approach also includes conducting market research and user testing to identify the most relevant products and services for NBK’s customers.

“These initiatives are designed to enhance service efficiency, allowing our employees to meet and often exceed customer expectations, thereby solidifying our reputation as a leading fintech organization through the rigorous application of our digital strategy. Our goal is not only to meet the needs and expectations of our customers, but to exceed that by anticipating their future needs and preferences” Al-Kharafi added.

He emphasized that NBK possesses unique strengths that set it apart from other financial institutions. As a dynamic leader in the banking sector, NBK boasts a diversified and ever-evolving portfolio of products and services. The bank's leadership is reinforced by its strong presence in international markets, coupled with its commitment to attracting, developing, and investing in top banking talent. This dynamism reflects the bank's unwavering focus on continually enhancing its products and services, while providing innovative solutions that effectively meet customer needs.

Building on Success, One Milestone at a Time

The Operations and Information Technology Group contributed significantly to NBK's digital transformation journey with several key achievements in 2024.

As part of the International Banking Group (IBG) blueprint, in 2024, the Operations and Information Technology Group has embarked on a mission to utilize the bank’s digital technology assets in Kuwait to deploy state-of-the-art digital channels for its international branches, thus enhancing customers banking experience regardless of their location. This exemplifies NBK’s steadfast commitment to innovation and its role as a leader in the digital banking landscape, not only locally but also across its international locations.

NBK has made substantial progress in the digital transformation of its overseas branches by adopting advanced technologies and digital channels to streamline banking operations and enhance the customer experience. The bank's digital initiatives have received positive feedback, leading to a notable increase in its market share in the banking sectors of the countries where it operates.

As part of its ongoing efforts to improve customer experience through self-service channels, and under the guidance of the Central Bank of Kuwait (CBK), NBK launched the WAMD service in July 2024 via the NBK Mobile Banking App. This service offers the fastest payment transfer system in Kuwait, processing three times the volume of standard KWD transfers across all channels.

Furthermore, in its ongoing efforts to modernize its ATM fleet, NBK has introduced a new service that transforms the customer banking experience. This service provides a personalized experience for various customer segments, offering flexible dispensing options, the ability to update KYC details using Kuwait Mobile ID, along with the full range of traditional banking transactions for NBK customers.

NBK Mobile Banking App

The NBK Mobile Banking App, Kuwait's highest-rated mobile application for digital banking, underwent significant enhancements in 2024. These improvements focused on refining existing services and introducing new features, all driven by the newly implemented agile methodology, to better serve the bank's customers.

This year, the NBK Mobile Banking App saw a fourfold increase in new launches compared to the previous year, with nearly 90 new services and application enhancements. These updates have significantly advanced the bank's digital channels, ensuring continued uptime, availability, quality, and secure operations.

To support this growth, the bank has also upgraded its technology portfolio, reinforcing its capacity to meet the needs of an expanding customer base.

Underscoring the strong trust in NBK's digital channels, 97.9% of total banking transactions were conducted through the bank's digital platforms (including all self-service channels).

AI and Automation

NBK has launched the “Open Text Workflow” for Request Approval Workflow process Automation, marking significant step forward in streamlining the bank’s workflow.

Moreover, NBK has reached a significant milestone by implementing 102 RPA processes and attained a program success rate of 98%. NBK is set to implement RPA automation in various regions, having already established RPA in three international locations. The automation initiative has significantly advanced NBK’s ESG goals, leading to a reduction of 6.3 million sheets of paper, saving over 200,000 hours of time, improving turnaround time by 90%, and decreasing carbon emissions.

Fikrah Platform

NBK's Operations & Information Technology Group has recently introduced the Innovation Platform, Fikrah. This platform will facilitate the sharing of ideas among participants, with the system assisting in the generation of creative concepts through various brainstorming techniques and customized prompts. This initiative is designed to foster a dynamic environment for the presentation of innovative ideas.

The platform integrates gamification by assigning points to staff for their submitted ideas, which they can subsequently use for redemption purposes.

International Transfers

Leveraging the outstanding regulatory and supervisory framework provided by the Central Bank of Kuwait, which sets a benchmark for excellence in the banking sector, NBK has achieved an impressive STP rate exceeding 90% for international transfers, positioning it among the region's leaders in seamless and efficient cross-border transactions. NBK leverages cutting-edge technology to enhance transparency and convenience for customers in tracking their transfers. The bank utilizes the GPI tracker for outbound transfers and the Swift4C tracker for inbound transfers, enabling customers to receive real-time status updates on their fund transfer transactions through online channels at any time.

Combined Outgoing FCY+ KWD Incoming STP Rates stood at 97%, while Combined Incoming FCY+ KWD Incoming STP Rates were 96%.

Building on the Central Bank of Kuwait's guidance, NBK has further enriched its banking services with the introduction of the 24/7 WAMD settlement mechanism for low-value transfers, alongside the innovative AFAQ service. This new feature, available through the NBK Mobile Banking App, provides near-real-time settlement of funds transfers to the GCC.

Cybersecurity and Anti-Fraud

In line with the Central Bank of Kuwait’s Strategic Framework for Cybersecurity for the Banking Sector issued in February 2020, NBK is adopting a proactive cybersecurity framework that aligns with the highest international standards.

The bank strengthens this framework with a comprehensive strategy focusing on data governance, privacy, and security. The bank also utilizes advanced security technologies to safeguard its digital interfaces, which undergo regular assessments by both internal and external auditors. Additionally, NBK ensures continuous monitoring of its digital channels through its Security Operations Center, backed by integrated and well-defined response plans to efficiently manage any potential cyber incidents.

In a proactive effort to strengthen customer protection and combat financial fraud, the Virtual Room (VR) was launched on December 7, 2023. Operating 24/7, under the guidance of the CBK, it offers immediate and comprehensive support for fraud-related cases, underscoring the vital role of banks in ensuring financial security.

The VR operates in close coordination with the Criminal Investigation Department (CID) and local banks to address fraudulent cases efficiently and promptly, 24/7.. Legal restrictions are enforced as directed by the Public Prosecution, with meticulous monitoring of fraud-related transactions across both NBK and non-NBK bank accounts. Additionally, advanced systems are employed to detect and report suspicious activities.

A notable example of the VR’s efforts involved combating sophisticated scams where fraudsters exploited Kuwait Mobile ID App to breach customers' phones and transfer their lines from traditional SIM cards to eSIMs, granting access to sensitive information. Additionally, the VR has identified other fraudulent tactics, including fake links, phishing emails, and deceptive phone calls.

Complementing its control measures, NBK, in collaboration with the Central Bank of Kuwait, launched a series of intensive awareness campaigns under the slogan "Let's Be Aware." These initiatives aimed to enhance customer vigilance against potential risks, featuring appearances on prominent TV and radio programs such as 360 FM Radio and Kuwait News Channel. The efforts also extended to producing and sharing educational clips across the bank's social media platforms.

NBK underscores the importance of customer vigilance in safeguarding their financial security. It advises caution when interacting with unverified links or calls, encourages the use of authorized apps for transactions, and warns against falling for enticing but dubious social media offers. The bank also stresses the need for immediate reporting of suspicious activities, reaffirming its dedication to protecting customer funds and ensuring the security of their banking transactions.

NBK Tech Academy

In collaboration with the Operations and Information Technology Group and the Human Resources Group, NBK launched the NBK Tech Academy last year to stay ahead of advancements in technology, information, and data security. The academy's inaugural batch of 10 trainees achieved remarkable success, and this year, it aims to qualify 15 trainees as part of its continued growth and development.

In 2024, the focus shifted to nurturing internal talent while also recruiting new Kuwaiti graduates from the first cohort of the NBK Tech Academy. These graduates were integrated into the development teams within the Operations and Information Technology Group, where they played a significant and effective role in enhancing and innovating current and future services. Their contributions have helped further develop the services provided to customers, enriching them with new features and improving overall service offerings.

Attracting Female Presence

Demonstrating NBK's commitment to attracting women in the technology sector, the Operations and Information Technology Group has recently initiated the "Women in Technology" program, which aims to promote leadership and enhance diversity within the organization.

In 2024, NBK has observed a significant rise in the representation of women at different levels, including both technical and leadership roles. This progress is consistent with NBK’s commitment to fostering diversity and inclusion, acknowledging that diverse teams have a positive and sustainable impact on business results.

IT Infrastructure

As NBK continues to innovate and enhance its technological and digital services by unifying its infrastructure and technologies, investing in new initiatives, and adopting the latest cybersecurity systems, infrastructure technology remains the cornerstone driving the bank’s technology and digital agendas.

In 2024, the Operations and Information Technology Group focused on stabilizing the infrastructure of the Bank's Tier III certified Data Center by making strategic investments in technology modernization and upgrading digital components and systems. Furthermore, the Group is advancing infrastructure automation and adopting a self-service model to accelerate and streamline user requests.

The Group is placing strong emphasis on proactive monitoring by consistently investing in cutting-edge technology in this area, while also exploring a new infrastructure architecture design aimed at simplifying and unifying the Bank's data centers.

Going forward, NBK plans to adopt more innovative initiatives, including AI, generative AI, and other cutting-edge technologies that will drive business growth, enhance customer experiences, and accelerate service delivery in the market.

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