I&M Bank, SPENN launch new savings product

SPENN, a financial technology company, has recently launched a new savings product in Rwanda called Spen Savings. The introduction of this new product aims to boost the savings culture in the country and contribute to enhancing financial inclusion. Norbert Haguma, the Country Manager of SPENN Rwanda, discussed the features and significance of the new product in a recent interview with CNBC Africa. The 2020 Finscope Survey on Financial Inclusion, conducted by Access to Finance Rwanda, revealed that savings play a crucial role in driving financial inclusion in Rwanda. A majority of adults in the country are seeking opportunities to save for asset acquisition, use as collateral, and other purposes. Against this backdrop, SPENN introduced Spen Savings as a simple savings tool that offers a 4% annual interest rate, with no minimum savings limit and no lock-in period. This convenient and flexible savings solution also allows free cash deposits and withdrawals, aligning with SPENN's commitment to providing accessible financial services. Haguma highlighted the technology-driven approach adopted by SPENN to enable free cash transfers within the country. Emphasizing the importance of promoting a cashless economy, he underscored the growing acceptance of digital transactions, particularly in the post-COVID-19 era. The decision to launch a savings product stemmed from observing a significant number of users keeping funds in their SPENN accounts without earning any interest. By introducing the Spen Savings account, SPENN aims to encourage users to save and earn interest on their deposited funds. Regarding the changing savings culture in Rwanda, Haguma noted an increased awareness among individuals about the importance of savings, particularly in uncertain times. While formal savings products are essential for building a financial history and accessing credit facilities, he acknowledged the existing informal savings practices prevalent among Rwandans. SPENN's goal is to offer an electronic platform that enhances trust, transparency, and convenience for users, thereby augmenting the overall savings culture in the country. Looking ahead, SPENN plans to focus on further integrating its platform with various service providers to expand its offerings. The company is set to launch an integration with EGO Motivo for transportation payments and is working towards integrating with existing e-commerce platforms in Rwanda. Additionally, SPENN has rolled out bank transfers and mobile money transfer services to facilitate seamless transactions for its users. By leveraging partnerships and technology, SPENN aims to strengthen its position in the digital economy and provide a comprehensive range of financial solutions. In response to a query on the competitive landscape vis-a-vis telecom-linked mobile wallets, Haguma clarified that while SPENN may face challenges due to smartphone dependency for its app-based solution, the company's focus on innovative, fee-free transactions sets it apart. Despite being associated with I&M Bank Rwanda, SPENN positions itself as a challenger to mobile network operators (MNOs) in the market, aiming to offer a unique blend of banking and fintech services. Regarding regulatory considerations, Haguma expressed optimism about Rwanda's approach to mobile money regulations, emphasizing the goal of promoting accessibility and interconnectivity. Unlike initiatives in Kenya to strengthen mobile wallet regulations, Rwanda's regulatory framework aims to foster a conducive environment for financial innovation and inclusion. The collaborative efforts of various stakeholders in Rwanda have led to a relatively secure and efficient mobile money ecosystem, paving the way for increased adoption of digital financial services. As SPENN continues its efforts to drive financial inclusion and savings culture in Rwanda, the company remains committed to expanding its product offerings and enhancing its platform's capabilities to meet the evolving needs of users in the country. With a focus on technology-driven solutions and strategic partnerships, SPENN is poised to play a significant role in advancing Rwanda's financial inclusion agenda.