Home Business & TechEconomy FinScope 2024 Shows Progress in Rwanda’s Financial Inclusion

FinScope 2024 Shows Progress in Rwanda’s Financial Inclusion

by Daniel Sabiiti
1:09 am

The FinScope 2024 survey has shown a growth in financial inclusion and access to services.

The survey unveiled this June 20, by the Prime Minister Dr. Edouard Ngirente showed that 96% of Rwandans are financially included, indicating a 3% growth compared to 93% in the previous survey in 2020.

The findings also showed that 92% of Rwandans use banking and microfinance services (equivalent to 7.6milion people); only 4% use other forms including savings groups, while Mobile Money users grew from 62% to 86%, savings and credit cooperatives (SACCO) reached ni 51% and insurance grew to 13%.

According to the 2021 World Bank report on financial inclusion, globally, 76 percent of adults have access to financial services.
The Finscope survey in Rwanda provides insights into Rwanda’s financial inclusion landscape, highlighting its progress and dynamics.

Prime Minister Dr. Ngirente said that financial inclusion surveys have become an important source of valuable data that inform evidence-based policy and
decision making, an enabler of sustainable and other development goals but the improved data also is an indicator of resilence in the case of Rwanda.

“This progress brings us closer to our target of achieving universal access to financial services. We are also happy to hear that the gap between rural and urban financially included adults reduced from 6% in 2020 to 2% in 2024,” Ngirente said.

This increase in financial inclusion, Ngirente said, has been informed by the Government of Rwanda being proactive in recognizing its significance and has implemented a series of measures to the most vulnerable members of the Rwandan society.

For instance, Rwanda has expanded the bank branch network, introduced priority sector lending schemes, promoted self-help groups and savings culture, as well as advanced mobile money services.

However, the dynamic evolution of technology has played a key role in promoting digital financial services where the mobile money ecosystem, in particular, has catalyzed a transformative shift in the landscape of financial inclusion.

This has been backed by tireless efforts to establish robust digital infrastructure at the grassroots level, ensuring universal access to
convenient, secure, and affordable digital payment solutions.

For instance, this month, Rwanda managed to digitally connect all the 416 sector based Umurenge SACCOs (U-SACCOs), using homegrown technology in a project that had spent 15 years without maturing.

With the implementation of automated systems, U-SACCOs eliminate the need for physical journals and offer real-time mobile notifications to members.

With the automation of 416 USACCOs, the government says that the next focus is on consolidating these SACCOs into District SACCOs (D-SACCOs) nationwide and deploying mobile banking systems across all branches.

The future plans include D-SACCOs purchasing shares in the Cooperative Bank, fostering strategic linkages to provide advanced financial services to members.

PM Ngirente said that in ongoing efforts, the government has prioritized addressing the needs of vulnerable segments and at the same time remain committed to consumer protection and enhancing customer capacity among others to ensure sustainable use of financial services.

Ngirente used the opportunity to encourage financial services providers to continue expanding access to financial services through innovative product
development, with a particular focus on reducing costs for low�income customers.

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