Kuwait Finance House (KFH) proceeded on implementing an automated posting system for transfers and financial messages with local banks, which accelerates transfer of customer funds to and from their accounts with KFH and local banks, concurrently, accurately and safely.
Anwar Bader Al-Ghaith, manager – operations department of KFH, stated that the new service, which is meant for mutual fund transfer via SWIFT, would reduce the time from one working day as per the old system, to a few seconds according the current system, which is in conformity with regulator's instructions, mainly the Central Bank of Kuwait.
Elaborating on the program features, Al-Ghaith said: "Once the money transfer is received by KFH, it will be automatically passed through the regulatory systems concerned with investigating the correctness and efficiency of the incoming data prior to being directly deposited into the beneficiaries' account." "The same applies when any KFH customer transfers to a beneficiary with local banks via KFH branch network, or using the service available on KFH website, kfh.com, where the money transfer will be directly posted to the beneficiary bank with any human interference." He commented.
"Application of the new system is largely important, as it reflects KFH's constant interest in its customers." He added, "It also reflects the support, attention to technology, automated transactions, as well as compliance to speed, accuracy and safety criteria, which are provided by the new system." He continued, "It will also contribute to facilitating the work flow, due to the substantial volume of operations maintained by KFH in the daily transactions market amongst banks. It has a large, diversified segment of customers, giving KFH a market share of 30-40% of the daily inter-bank transactions volume." He explained.
"Of the system's features are mitigating the operations risk, in addition to enhancing the efficiency and quality standards, facilitating automated settlement of customer amounts and accounts, thus maintaining stringent financial operations and other statistical systems." He added.
"The system is concerned with linking the external money transfers between banks and KFH, where its role commences since establishing such money transfers, and ends with their deposit into the beneficiaries' accounts, after being automatically processed under high quality control systems." He said, "The system features processing of financial accounting entries, in addition to calculating exchange rates on FC incoming transfers as per the official exchange rates announced for the same period." He elaborated, "In addition, amount settlement, and issuance of data and statistics organizing liquidity and fund management, are among the program features. The application of the system in its present form will enhance the bank's transformation into new technologies and operational automation." He concluded.