With the rise of internet penetration across the country, Kuwait is currently experiencing a new wave of trends in Digital Commerce. Kuwait’s banking market is experiencing the biggest surge today due to rising digital banking services. As per reports, Kuwait’s retail banking sector could dominate the nation’s banking sector with a projected market volume of over USD 33.99 billion. The penetration rate of bank accounts is estimated to rise from 90 percent today to 99 percent by next year itself. In 2023, it was reported that the retail loan book in Kuwait grew by around 1.6 percent while private sector deposits increased by around 2.2 percent during the same period. IMF predicts Kuwait’s real GDP to grow by 3.6 percent in 2024.
International Business Magazine invited nominations for two titles – Best Retail Bank, Kuwait 2024 and Fastest Growing Retail Bank, Kuwait 2024 – from reputed banks based out of Kuwait. For these award titles, we analysed their host of services, ranging from personal banking to asset management and investments. The jury has analysed some of the popular customer-oriented services and several CSR initiatives. Based on the above findings, we concluded the winner for the above two titles to be Al Ahli Bank of Kuwait (ABK).
A Bank that Grows for Kuwait
Established in 1967, ABK has over 75 branches across Kuwait and Egypt. It is also one of the first Kuwaiti banks to have a branch in the UAE. ABK is accredited as one of the top 10 safest banks in the Middle East. It also enjoys strong credit ratings from Moody’s and Fitch.
ABK has developed several strategies in their operations in Kuwait. Its primary focus has been on expanding profitable market share in targeted areas and growing its core franchises. Considering the current geopolitical conditions, the market trends and the interest rates, ABK has improved its performance in the retail sector. The company has also implemented an innovative risk management practice. ABK has invested heavily in a comprehensive capability building program for upgrading their existing and new talent pool.
Al Ahli Bank of Kuwait enjoyed a very successful stride in 2023. ABK successfully completed its capital increase exceeding the targeted value by 331 percent to reach KD 331.37 million. This has earned them the title of the Fastest Growing Retail Bank Kuwait 2024.
Improving Productivity and Experience
Al Ahli Bank of Kuwait has a strategic collaboration with OpenAI, a leading provider of the most advanced AI technology in the world. ABK is incorporating AI tools and solutions to boost the productivity of its employees and to provide a responsive customer experience. As a pioneer, in 2023, ABK unveiled the first-of-its-kind digital branch of the Kuwaiti banking industry. The new digital branch, located at Al Khiran Mall, is incorporated with innovative technologies such as a hologram feature.
ABK has a modern core system for a single banking solution for its employees and customers. This has significantly improved the time to market timeline for the launch of new products and services, further simplifying the process and making the whole operations cost-effective. The mobile app from ABK has one of the most user-friendly interface. The app has many beneficial features for its account holders, which include cashback offers, loyalty points and even credit card updations. Customers can also connect with an ABK representative over the mobile app.
Al Ahli Bank of Kuwait had introduced the ISIC Youth prepaid card in partnership with International Student Identity Card (ISIC) and Mastercard for valuable financial services for students. ABK has reported a significant boost in its customer acquisition through a few popular initiatives such as Bank@Work, Central Sales expansion and increased presence at key outlets of the bank. ABK has even extended its support towards retirees through a special offer in collaboration with The Public Institution for Social Security (PIFSS).
ABK has also enjoyed an increase in the number of its card usages due to the innovative and beneficial loyalty program called the ABK Advantage. This program has earned its popularity among the salaried population for its plethora of redemption options, which includes flights, hotel reservations, sports, cultural events and e-vouchers from popular retail outlets. In 2023, ABK has seen an 18 percent rise in the card usage volume.
Ensuring a Sustainable Future
Leaders at Al Ahli Bank of Kuwait have accepted the reality that in this age of globalisation, a successful integration of an effective ESG principle is eminent for sustainable growth and continued success. In 2023, ABK initiated a 5-year group strategy. This strategy includes the implementation of an ESG policy framework and governance structure. ABK actively participates in several ESG events across the globe. It is active in several initiatives taken by the policymakers of Kuwait and industry experts across the globe.
ABK has imbibed the understanding of ESG principles across its staff and organisation. It ensures that its workforce and partners are actively contributing towards sustainable corporate practice across the globe. It is a prime factor for consideration during all decision-making tasks at Al Ahli Bank of Kuwait.
Unwavering Commitment to Excellence
As the IMF revised its world GDP growth projections for 2024 and beyond, ABK bank has further invested in its retail banking division to upgrade its products and services. The bank believes that to sustain its upward trend, it needs to be the pioneer in the Kuwaiti banking industry with its customer-centric and technology-driven approach.
Al Ahli Bank of Kuwait continues to invest its resources in enriching customer experience, digital transformation strategy and keeping pace with the rapid changes in the local, regional and global banking industry. This makes them a worthy winner of the title – Best Retail Bank, Kuwait 2024.
Article by Ujal Nair
