Interview: Abdulwahed AlJanahi
In what ways do you see digital payment solutions maturing in Bahrain over the next decade?
ABDULWAHED ALJANAHI: The continued progression of digital payment solutions is set to align with Bahrain’s national development agenda, which focuses on competitiveness, creativity and sustainability. As we move towards 2030 and beyond, the emphasis will be on enhancing the convenience, security and interoperability of payment systems. Emerging technologies such as mobile payments, wearable devices and augmented reality will play crucial roles in this transformation by simplifying transactions and promoting transparency. Additionally, integrating advanced security measures like verification driven by artificial intelligence (AI) will help to protect financial data and maintain user trust.
Which infrastructural changes can support Bahrain’s transition towards a cashless society?
ALJANAHI: One key change involves enhancing payment infrastructure – such as the Electronic Funds Transfer System, which was upgraded in 2022 through an investment of BD1.6m ($4.2m). Additionally, funding for data analytics and AI technologies will further improve the efficiency and security of financial transactions. Education and public awareness campaigns are also vital to encourage adoption and trust in digital payment systems. By maintaining a robust and innovative payment infrastructure, Bahrain can effectively realise its vision of a cashless society and ensure the reliability and convenience of all digital transactions.
What key strategies can help to maintain and enhance cybersecurity in the financial sector?
ALJANAHI: From a business strategy perspective, maintaining robust threat detection systems, firewalls and intrusion prevention tools that are regularly updated to counter evolving cyberthreats is paramount to cybersecurity efforts. Additionally, continuous training and skill enhancement for cybersecurity teams are critical for staying ahead of potential risks. Prioritising cybersecurity should be a prerequisite for any financial technology (fintech) service. Furthermore, leveraging AI to enhance both preventive and responsive security measures will be an increasingly important focus going forwards. Maintaining a proactive approach and investing in cutting-edge security solutions can protect financial services and preserve customer trust.
To what extent has the Bahrain Open Banking Framework helped to expand fintech services?
ALJANAHI: Launched in 2020, the Bahrain Open Banking Framework has provided a foundation for transparency and efficiency in financial services. By encouraging collaboration among stakeholders and aligning with global standards, this framework has significantly influenced the growth of fintech in Bahrain. The Central Bank of Bahrain has refined the framework to ensure it aligns with the national vision for digital transformation. This regulatory support has fostered innovation and the introduction of new products, laying the groundwork for a thriving fintech ecosystem.
How has the Arabian Gulf System for Financial Automated Quick Payment Transfers (AFAQ) facilitated regional financial integration?
ALJANAHI: AFAQ has had a substantial impact on facilitating cross-border transactions and promoting financial integration within the GCC. By providing a local network for transactions, AFAQ ensures a level of independence and security for Bahrain’s financial sector. This is crucial in maintaining stability and continuity in the event of external disruption. Moving forwards, the role of AFAQ is expected to evolve as stakeholders focus on enhancing regional collaboration and ensuring seamless integration with other financial systems. This evolution will likely involve adopting new technologies and expanding the scope of services to meet the demands of a digitally integrated regional economy.
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