Kuwaiti banks are exploring the possibility of introducing fees on online transfers between different banks. This move aims to help financial institutions manage the rising costs of digital transformation and operational expenses.
Currently, transferring money between banks online is free, while in-branch transactions cost 5 dinars. The proposed plan suggests charging 1 to 2 dinars for each online transfer between different banks. However, transfers within the same bank will not incur any new charges. Each bank will have the flexibility to set its fee within the suggested range.
Banks argue that the increasing volume of digital transactions, especially for business payments, has added pressure on their systems. Despite handling a growing number of online transfers, banks have not yet implemented a way to generate revenue from these transactions. Some experts have proposed applying fees specifically to transactions made through platforms like “Wamd,” which handle a large number of commercial payments, often reaching the daily transfer limit of 3,000 dinars.
More customers are choosing online transfers because they are fast, secure, and convenient. Personal transfers usually involve smaller amounts, but digital payments are now widely used for various financial activities. As a result, banks see an opportunity to introduce fees to support their expanding digital services.
Although many in the industry support charging fees for interbank transfers, there is opposition to applying them on platforms like “Wamd.” Critics believe this could negatively affect small-scale users who rely on digital transfers but might struggle with additional costs.
Banks are spending heavily to modernize their operations and adopt advanced financial technologies. These investments are necessary to stay competitive, but they also bring higher costs. The proposed fees could help balance these expenses while ensuring continued innovation in digital banking services.
