Financial institutions are argued to boost their credit access among small and medium enterprises through fully grabbing the digital financial system.
Technological advancement gives the financial institutions the platform to achieve their financial targets and reaching the wider range of the customers effectively and efficiently.
According to Pascal Nyagahene, the Chief Executive Officer of MobiCash Rwanda, “Digitizing the financial industry will not only strengthen Rwanda’s credit system, but equally increase access to credit.”
Talking to The News Times, he emphasized, “Increasing access to formal financial services means being able to mobilize domestic savings which is critical for domestic growth.”
Mr. Pascal pointed the importance of digital wallets through sensitization campaign that is critical for the financial sector.
According to the Finscope survey 2016, there is more than 89 percent financial inclusion in Rwanda a thing which was criticized by Mr. Pascal that, “financial inclusion will happen if people participate in the banking ecosystem”.
MobiCash is working on its easier accessibility to customer’s bank account and mobile money operator to extend the banking system across all sectors which will improve financial inclusion.
Mr Pascal elaborated on the survey on an increase in informal financial service of almost 72 percent up from 52 percent in 2012. This financially means those accessing financial services through non-banking institutions increased to 42 percent up from 19 percent in 2012.
These facts appeals that the financial sector is not digitized to the required level. To enhance the financial inclusion and reducing the people who are financially undeserved, going digital is inevitable.
Alex Kanyankole, the Chief Executive Officer Development Bank of Rwanda (BRD), believes that there is more to be done to increase connectivity especially in rural Rwanda, which will not only speed up financial inclusion but equally revolutionize the entire financial sector.
The Governor National Bank of Rwanda (BNR), Mr John Rwangombwa insisted that more should be done to integrate those still informal to formal financial services.
“Digital financial platforms especially those accessible on mobile phones, can be used as a tool towards bringing more Rwandans to formal financial services” the Governor insisted.
In recent years, Rwanda has experienced the improvement in digital banking system through a significant increase in banking Automated Teller Machines (ATM’s), electronic cards both debit and credit cards and mobile money accounts over the past few years though the improvement is not as sufficient and mainly affects urban area.