Interview: Isam Al Sager, Group CEO, National Bank of Kuwait, on driving innovation, digital transformation and financial inclusion
In what ways are digital banking and financial technology reshaping customer expectations?
ISAM AL SAGER: Digital platforms now dominate retail transactions, with younger generations driving demand for seamless, real-time and contactless payments. For corporations, digital tools in cash management and trade finance enable businesses to operate more efficiently in a technology-driven economy. Competitive advantage is increasingly influenced by speed and innovation, particularly as digital channels become more prominent. Banks are at different stages of deploying artificial intelligence (AI), automation and blockchain to improve risk management, shorten approval times and enhance service quality. This shift aligns with New Kuwait 2035, which emphasises digitalisation and diversification.
How are environmental, social and governance (ESG) principles being integrated in banking?
AL SAGER: Kuwait’s banks are responding to central bank guidelines and international standards through institution-led ESG policies. This includes climate disclosure reporting and integrating ESG metrics into credit assessments. Sustainable lending and green bond issuance remain at an early stage, with activity focused on initiatives supporting renewable energy, clean transport and infrastructure projects. Selected retail offerings such as eco-friendly loans are helping individuals make more sustainable choices. Social commitments remain a priority, with banks expanding financial inclusion and promoting diversity and gender equality.
What growth and innovation trends are expected in Islamic banking over the next decade?
AL SAGER: Islamic banking accounts for nearly half of sector assets. It mobilises capital into areas such as infrastructure, real estate and small and medium sized-enterprises (SMEs), helping reduce reliance on oil while broadening financial inclusion. Its principles of risk-sharing and ethical finance have also supported consistent growth in assets and liquidity. Over the next decade, growth will be shaped by digital transformation and innovation. Advances such as AI-driven platforms, blockchain-enabled sukuk (Islamic bond) and mobile first Islamic wealth services are expected to enhance efficiency and client engagement. Islamic banking is likely to play a larger role in sustainable finance through green sukuk and ESG-integrated sharia products that align with Kuwait’s net-zero ambitions.
Which strategies are being implemented to enhance financial inclusion in Kuwait?
AL SAGER: Financial literacy programmes in schools and national awareness campaigns, supported by parts of the banking sector, are helping build skills and the knowledge needed to use modern financial services responsibly. Some banks are expanding access to affordable accounts and tailored packages for workers with modest salaries, while SME financing continues to grow, giving SMEs better access to working capital. AI-driven tools and secure payment solutions are making banking more accessible to wider segments of the population. These efforts ensure inclusion translates into tangible outcomes – supporting entrepreneurs and preparing future generations for success.
Where do you see the biggest cybersecurity challenges as digital banking expands?
AL SAGER: Threats are becoming increasingly sophisticated, with AI-driven scams, ransomware and social engineering tactics replacing traditional phishing attempts. Sector-wide, the Virtual Room initiative connects banks with law enforcement to monitor transactions and combat fraud in real time. At the institutional level, banks are investing in 24/7 monitoring, advanced encryption, real-time detection and blockchain-based security for cross-border payments. Awareness campaigns and training programmes are also helping customers and staff better recognise risks.
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