MANAMA, Bahrain, Nov 2 – Bahrain is set to establish an AI-powered wholesale bank through a partnership between sovereign wealth fund Mumtalakat and ARP Group.
The proposed bank will be based in Bahrain. It will use artificial intelligence (AI) and blockchain technology to provide banking services to businesses and financial institutions.
The Central Bank of Bahrain has granted the project in-principle approval. However, the bank must still obtain final regulatory approval before it can begin operations.
Bank to Focus on Business and Financial Institutions
The proposed bank will serve financial institutions, payment companies and businesses operating across international markets.
It aims to make cross-border banking easier. This includes helping clients manage transactions across different countries and currencies.
The partners also plan to reduce the cost and complexity of banking services through technology.
In addition, clients will be able to connect banking services directly to their own business systems through digital tools known as application programming interfaces (APIs).
AI and Blockchain to Support Banking Services
Artificial intelligence will be part of the bank’s operations from the start.
The bank is also expected to use blockchain technology to support its financial systems.
However, technology will not replace human oversight. The partners said the bank would maintain proper governance and risk controls.
Services will be introduced in stages. The rollout will also consider feedback from potential clients.
Mumtalakat Highlights Bahrain’s Financial Sector
Mumtalakat CEO Shaikh Abdulla bin Khalifa Al Khalifa said the partnership supports Bahrain’s efforts to strengthen its financial services sector.
He said the project combines Mumtalakat’s investment experience with ARP Group’s knowledge of institutional finance and digital banking.
The partnership also aims to create long-term value for Bahrain. It is expected to support strategic industries and create opportunities for local talent.
ARP Group Targets Growing Demand for Digital Banking
ARP Group Chairman Yusuf Alireza said businesses still face challenges when using banking services across different markets.
He said the proposed bank would combine traditional banking services with AI and blockchain technology.
Alireza also highlighted Bahrain’s established financial sector and regulatory experience.
The partners aim to serve clients across the Gulf and other international markets.
Source : PR Newswire | Rewritten By Minutesmy
