How the Rwandan banking sector is set to evolve post-COVID-19

The recent COVID-19 pandemic has left a lasting impact on various sectors worldwide, including the banking industry. As Cherno Gaye, Managing Director of Cogebanque, pointed out in a recent interview with CNBC Africa, the banking sector may have to evolve significantly in the post-COVID-19 era to adapt to the new challenges and changes brought about by the global crisis. Gaye discussed the potential fallout that companies may face, categorizing them into three main groups based on the extent of the damage they may experience. He emphasized the importance of strong fundamentals for businesses to weather the storm and highlighted the role of commercial banks in offering support to clients during these challenging times. While there have been calls for banks to be more flexible and accommodating, Gaye explained the delicate balance that banks must strike between meeting stakeholder expectations and maintaining their financial stability. The conversation also touched upon the terminology used by banks regarding loan repayments and the difference between easing the payment of interest versus the principal amount. Gaye clarified that while certain terms may vary, the ultimate goal is to provide relief to clients and help them navigate through the economic difficulties. One notable shift in the banking landscape has been the significant increase in digital transactions, both globally and in Rwanda. Gaye highlighted the convenience, speed, and security of digital banking platforms, suggesting that the accelerated adoption of digital solutions during the pandemic may become the new norm for banking operations. With customers gaining a better understanding and appreciation of digital services, Gaye expressed optimism about the continued growth and reliance on digital banking post-COVID-19. As the banking sector prepares for a future shaped by the lessons of the pandemic, Cogebanque and other financial institutions in Rwanda are poised to embrace innovation, flexibility, and digital transformation to meet the evolving needs and expectations of their clients and stakeholders.