Kuwait Finance House (KFH) is the first Islamic bank in Kuwait established in 1977. Today, KFH is one of the leading Islamic banking institutions in the world, and one of the biggest financiers in both the local and regional market.
KFH and Ripple, a long-standing partnership
KFH was one of the early adopters of RippleNet, partnering with Ripple as early as May 2018. In preparation for using RippleNet, KFH organized training sessions for its employees and a few months later, in August 2018, executed the first blockchain transaction on RippleNet.
It was in early 2019 that KFH finally went live on RippleNet. KFH announced this significant milestone after completing the technical preparations and conducting a number of pilot testing and obtaining Central Bank of Kuwait approval. In cooperation with Al Rajhi Bank, it launched a zero-fee remittance service where customers could make remittance transactions to beneficiaries at Al Rajhi Bank in Saudi Riyal SAR. This service would expand to encompass more countries in different currencies in the future. By November, KFHOnline total transactions exceeded 100 Million in one year, with a growth rate of over 25% compared to the same period the year before.
KFH expands RippleNet use to Turkey
Today, 16 months after officially going live on RippleNet, KFH announced the expansion of its Ripple-run service to Turkey. According to a press statement, KFH has completed the procedures and technical tests necessary to launch the service of foreign direct money transfers using the RippleNet network to a beneficiary account in KFH-Turkey.
Walid Mandani (KFH Group Chief Retail & Private Banking Officer), added that KFH will announce very soon the actual operation of the service, confirming the bank’s commitment to apply the latest findings in digital financial services technology, to achieve the best service for customers and give them a modern and distinguished banking experience.
Mandani pointed out that the service comes to meet the needs of KFH clients who want to carry out instant transfers to Turkey for personal and investment purposes, pointing out that the service is provided to KFH customers for free according to the highest standards of safety, accuracy, and speed. The service is available around the clock throughout the week through (KFHonline), on the website, or via the IOS and Android mobile app.
Mandani said that the service of “immediate external transfer” via the Ripplenet network makes it easier for the customer to make cross-border financial transfers through a reliable and widespread global network, based on the digital transaction technology “Blockchain”, noting that KFH was one of the first Kuwaiti banks that joined the RippleNet network to facilitate instant international money transfers. By joining the global RippleNet network, financial institutions can implement instant, reliable, and cost-effective transfers.
He stressed that this step strengthens KFH’s leadership in implementing the digital transformation strategy, pointing out that the bank was a pioneer in enhancing investment in FinTech financial technology and digital banking services while ensuring that it is provided to customers within the highest standards of efficiency and quality.
KFH is listed in the Kuwait Stock Exchange (KSE), with a market capitalization of $8.2 billion as of May 2016, total assets of $55.52 billion, and deposits amounting to $34.97 billion. The KFH Group offers a wide range of Islamic products and services across several regions, with 504 branches, 1,263 ATMs and around 15,000 employees during 2018. The KFH Group currently operates in Kuwait, Bahrain, Malaysia, Saudi Arabia, Turkey, and Germany.
XRParcade had revealed in January 2020 that Kuveyt Türk Bank (a member of the KFH Group) was working on the integration of xCurrent. The bank has been working since January 2019 in a project to enable the transfer of money from the Parent Bank (KFH) to the local Bank through the Ripple xCurrent system. It seems that the integration is now finished and the service will be officially announced soon.