Rwanda: Banks urged to launch new innovative products

Apr 11, 2013

A new survey, the 2013 Rwanda Financial Diaries, shows that people are joining the formal sector but are not actively using financial products, due to a lack of innovation.

A new survey, the 2013 Rwanda Financial Diaries, shows that people are joining the formal sector but are not actively using financial products, due to a lack of innovation.

"Access to formal services is not an issue, the issue is on the product relevance," says Eric Rwigamba, the Technical Director of Access to Finance, who sponsored the survey in partnership with Visa.

"I think that there is evidence that people are willing to use formal financial services. The banks should think of products that would meet their demands," he added, quoted by East African Business Week.

Most people opt for informal financial access to address temporary income shortfalls and only use banks to deposit money, states the survey.

It adds that Informal products offer flexibility, convenience and terms that fit earning patterns and the financial needs of the market, and urges banks to offer new products to answer those needs.

According to new figures from Finscope Rwanda and the National Bank of Rwanda, almost three-quarters of people in the country can now access financial services and products.ADNFCR-2976-ID-801569879-ADNFCR