Remote areas of Rwanda will get access to banking services by means of mobile banking vans operated by the Bank of Kigali.
Bank of Kigali, Rwanda’s largest lender launched five mobile banking vans to cater to the needs of the rural unbanked population of the country. This type of innovation is spurred by competition in the banking industry in the country.
Each van costs USD 300,000 and will provide banking services to individuals, savings and credit cooperatives, and microfinance institutions that are clients of BK.
For the security of the vans, they will travel without any security convoy but will use General Packet Radio Service or GPRS to monitor the location of the vans at the BK head office and is also connected to the police.
For the first phase of the program, the vans will help clients open accounts, deposit and withdraw money and also provide MFIs and SACCOs the services they need. The program is also looking to provide mobile money service to customers and provide liquidity to BK’s agents in remote areas.
The goal of the program is to provide the 50% unbanked population of the country an access to financial and banking services and also aiming at a 90% financial inclusion rate by 2020 and 80% by 2017. Bank of Kigali, through the program is also targeting 500,000 customers by 2015 from 50,000 in 2009.
As of present time however, only 72% of Rwandans have access to financial services while only 22% have bank accounts.
- Rwanda’s unbanked population rate as of 2012: 50%
- Goals for financial inclusion by 2020: 90%; by 2017: 80%
- Bank of Kigali customers as of 2009: 50,000
- Bank of Kigali customer target by 2015: 500,000
- Only 72% of Rwandans have access to financial services
- Only 22% of Rwandans have bank accounts
Lawson Naibo, Bank of Kigali Chief Operations Officer: “The objective is to reach and serve as many Rwandans as possible but also address the challenge of liquidity in Saccos. This fits well in our reason of existing, which is to financially include many Rwandans.”
Will these banking vans be able to educate the unbanked population and convince them to open bank accounts and take advantage of the many financial and banking services being offered by these mobile banks?
Join the conversation here or on our Facebook page.