The Banking Executive Magazine - April 2024

Digital Revolution in Bahrain ($1.3bn) in 2023.In simple terms, the RTGS functions as the express lane of the financial system, allowing for near-instantaneous transfers of hefty sums between banks. The rapid adoption in the use of payment serv- ices offered under the Electronic Funds Transfer System (EFTS) oper- ated by Benefit, which also runs the national ATM and point-of-sale switch, indicates a growing prefer- ence for cashless convenience among Bahraini residents. Fawri+ is an instant, low-value pay- ment service which allows individu- als or entities to transfer funds of up to BD1,000 per day in less than 30 seconds; whereas Fawri caters to same-day or future-dated transfers, handling both small and large value payments on working days.In 2023, the number of Fawri+ transactions reached a staggering 334.8m, with a daily average of more than 917,000 transfers and a total value of BD7.3bn. Last year, Fawri handled 12.4m transactions totaling BD20.7bn (daily average: 34,000 transactions, BD56.7m).Streamlining the once-dreaded task of wrangling overdue invoices, Fawateer is the electronic bill presentment and pay- ment (EBPP) system that allows bank account holders to settle bills from both online and offline billers. Fawa- teer transactions in 2023 surpassed 12.7m, with a daily average exceed- ing 34,900 and a total value of BD989.2m.This trend extends to the ubiquitous ATMs which saw a steady stream of withdrawals throughout the year, at 13,371,623 and totaling an amount of BD1.358 billion with a daily average of 36,635 transactions and an average daily value of BD3.721m.While traditional cheque usage continues, its volume has de- clined compared to electronic trans- fers. The CBB reported more than 2m cheques cleared in 2023, totaling BD7.04bn ($1.9bn).Securities trans- actions also saw robust growth through the CBB-operated Scripless Securities Settlement (SSS) system. This system acts like a safe deposit box for digital government bonds (scripless form) and handles buying and selling them electronically. It even works with the RTGS system (fast money transfers) to make settle- ments smooth. More than 3,200 transactions valued at BD13.3bn ($3.5bn) were settled through SSS in 2023, showcasing the active partici- pation in government securities is- suance. The daily average number of transac- tions was 13 and the average daily value was BD53.509m.Total fees re- ceived from RTGS and SSS member banks (transaction fees and annual membership fees) amounted to BD395,476 in 2023.The CBB also highlighted the success of its cross- border payment system, AFAQ, launched in collaboration with the Saudi Arabian Monetary Agency (SAMA) in December 2020.More than 49,000 cross-border transfers valued at BD363.96m ($97.3m) were processed through AFAQ in 2023, facilitating seamless financial transactions between the two na- tions, a potential boon for regional trade. The volume of the incoming bank transfers through the service was 433 for a value of BD1.9m and the volume of outgoing payments was 1,197 for a value of BD5.98m.Incoming customer pay- ments through AFAQ totaled 18,728 with a value of BD83.71m whereas the volume of outgoing customer transfers was 28,807 for a value of BD272.37m. Bahrain’s currency deposits reached BD741.3m in 2023, while with- drawals were BD724.8m.The value of currency in circulation at last year’s end stood at BD668.5m. This comprised BD23.1m in coins and BD645.4m in banknotes. Of the ban- knotes in circulation, BD61m be- longed to the fourth issue, representing 9.5pc of the total. The upgraded fourth issue of BD20, BD10, and BD5 notes, featuring new security features, made up the re- maining BD575.9m, or 89.2pc of the total. Banknotes from the third issue accounted for the remaining BD8.4m, or 1.3pc of the total. These figures underscore Bahrain’s commit- ment to fostering a modern and effi- cient payment landscape, catering to the evolving needs of its citizens and businesses. Meanwhile, the CBB an- nounced that this year it will be launching a collection of silver medal sets, each featuring four com- memorative medals showcasing the vibrant marine life that thrives in Bahrain’s waters. These limited-edi- tion collectibles follow 300 sets of a medal series unveiled last year as a tribute to Bahrain’s wildlife. ISSUE 184 APRIL 2024 the BANKING EXECUTIVE 27