In a strategic move to enhance its digital offerings and customer experience, Al Salam Bank's ONE App has announced a partnership with Solidarity Bahrain. This collaboration introduces a Buy Now Pay Later (BNPL) service for car insurance, a first in the Kingdom of Bahrain. Clients can now issue or renew their insurance policies through Solidarity's branches or digital platform using the BNPL feature provided by ONE App.

The new service allows customers to split their insurance costs into monthly installments, providing greater financial flexibility without the need for additional documentation. With instant approval and direct disbursement to Solidarity, this service aims to simplify the insurance process, making it more accessible and convenient for clients.

Mr. Haitham Al Haddad, General Manager of ONE App, expressed pride in expanding their digital services through this collaboration. He highlighted that the BNPL feature allows clients to manage their expenses more effectively by spreading the cost over 12 months without incurring additional fees or requiring salary transfers. This initiative aligns with Al Salam Bank's commitment to offering innovative solutions that empower clients to budget and plan with confidence.

From Solidarity Bahrain's perspective, Mr. Jalal Aqelah, Head of Marketing and Digital Channels, emphasized that the partnership aims to deliver a more seamless insurance experience. The BNPL service is seen as a valuable addition to Solidarity's offerings, helping meet the evolving needs of clients and supporting the digital transformation of the insurance sector in Bahrain.

The partnership underscores ONE App's strategy to provide an all-in-one financial platform that is intuitive and tailored to diverse client needs. By integrating financial and insurance services, Al Salam Bank is positioning itself as a leader in digital financial solutions in the region.

For investors, this move reflects Al Salam Bank's commitment to innovation and customer-centric solutions, which could enhance its market position and growth prospects. However, given the competitive nature of the financial services sector, it may be prudent to adopt a 'hold' strategy for now, as the long-term impact of this partnership on the bank's financial performance remains to be seen.