The Central Bank of Bahrain (CBB) has announced plans to set up a dedicated Fintech unit to ensure that best services are provided to individual and corporate customers in the financial sector.

The move comes as part of the CBB's ongoing initiatives towards financial digital transformation in the kingdom and developments in digital financial services, said a statement from the kingdom's central bank.

The announcement was made following the CBB’s board meeting on Sunday, it stated.

This follows the CBB’s recent initiatives, which include a Regulatory Sandbox that will allow startups and fintech firms to provide innovative banking solutions, which include four companies to date, in addition to the issuance of crowdfunding regulations for both conventional and Sharia compliant services.

According to CBB, the proposed fintech unit will be responsible for the approval process to participate in the Regulatory Sandbox, supervision of licensed companies’ activities and operations, including cloud computing, payment and settlement systems, and monitoring technical and regulatory developments in the fintech field.

"We are pleased to announce the new Fintech Unit at the CBB, which will enable us to allow industry players to freely apply innovative products while maintaining the overall safety and soundness of the financial system," stated Rasheed Al Maraj, the governor of the CBB.

"This is a major step in the development of the current ecosystem in place to encourage growth in the Fintech industry, and we are keen on welcoming more local, regional, and international fintech firms in the kingdom," he added.-TradeArabia News Service