KUWAIT: As part of its ongoing commitment toward social sustainability, and its keenness to enhance financial literacy and education, Gulf Bank is keen to direct its customers to proper channels of saving and investment and educate the general public about the risks of unsafe investments. The initiative has been an ongoing priority that the Bank has been promoting through its various channels, including social media, its website, and more.
Earlier this year, Gulf Bank affirmed that it will continue to spearhead various efforts in support of the Diraya campaign in its second year. Initiated by the Central Bank of Kuwait and the Kuwait Banking Association, the Diraya campaign is an awareness campaign that aims to spread financial literacy in society, raise awareness of the role of the banking sector, and promote the various services that banks offer to their customers.
Deputy Director General of the Economic Research Unit at Gulf Bank, Tareq Al-Saleh, stated that Kuwaiti banks provide various products and services that assist customers in managing their investments and increasing their returns. These products include investment deposits, investment funds and various savings accounts, which are subject to the supervision of the Central Bank of Kuwait and the Kuwait Banking Association, and are tailored toward clients’ various requirements, according to the acceptable risk level determined by each client.
He pointed out that banks offer both short and long-term investment plans that enhance customers’ abilities to prepare for future plans, including children’s education, personal projects, retirement, and more. Investment plans assist clients in saving money in a bank account by promoting regular savings and investments in order to achieve accumulated returns, with a pre-specified investment period.
He warned against high-risk investments, which are not subject to a supervisory body regulating their work, and which do not fall under the jurisdiction of a legal code that can protect investors. These high-risk investments include cryptocurrencies, as digital currencies are not subject to the supervision of the Central Bank of Kuwait, nor are they under the control of any global or national institution.
He noted that multiple people have lost their money after investing in cryptocurrencies in the hope of achieving quick financial profits from a sudden increase in cryptocurrencies’ value. Advertisements that promise huge profits from investing in cryptocurrency have also added to the allure of this type of investment; however, the advertisements generally do not mention the extent of the volatility of cryptocurrencies, whose value rises and falls in an unpredictable manner, and which have resulted in some investors making fortunes and many others losing their wealth and savings.
He added that investing in what is known as “Forex” (a global market for currency exchange) is among the highest risk investments due to several reasons, including people’s lack of knowledge of the nature of transactions that take place in this market, global currency rates, and the exploitation of many online brokerage companies. Other reasons include the reliance of many investors on pure speculation, and online advertising that has led to the spread of many fraudulent companies that promote quick and promising returns.
Gulf Bank’s vision is to be the leading Kuwaiti Bank of the Future. The Bank is constantly engaging and empowering its employees as part of an inclusive and diversified workplace in recognition of every employee’s role in delivering customer excellence and serving the community at large. With its extensive network of branches and innovative digital services, Gulf Bank is able to give its customers the choice of how and where to conduct their banking transactions, all while ensuring a simple and seamless banking experience.
Gulf Bank is committed to maintaining a robust sustainability program at the community, economic, and environmental levels through sustainability initiatives that are strategically selected to benefit both the country and the Bank. Gulf Bank supports Kuwait Vision 2035 “New Kuwait” and works with the different relevant parties to achieve it.