World Bank lauds Rwanda’s Central Bank in driving financial inclusion

Rwanda’s Central Bank has been commended for its efforts in driving financial inclusion in the country, with the World Bank's Vice President, Victoria Kwakwa, acknowledging the significant milestones achieved. Financial inclusion has remained a key priority in Rwanda's national strategy for transformation, and the country has made remarkable progress over the last decade. With a current financial inclusion rate standing at 66 per cent, Rwanda has seen substantial advancements in digital financial services, primarily driven by mobile money access and usage. The latest Finscope survey of 2020 reported that about 7.1 million adults in Rwanda are digitally included, and this number is expected to increase in the upcoming 2024 FINDEX survey. Rwanda's efforts to enhance savings and credit groups, offer formal financial services, strengthen consumer protection, de-risk MSME financing, and promote digitalization in finance have all been crucial in driving financial inclusion in the country. The World Bank's Vice President emphasized that enhancing financial inclusion is imperative in sub-Saharan Africa, where development challenges intersect with technological advancements to accelerate progress. While there has been significant progress globally in increasing account ownership, with 76 per cent of adults having an account in 2021, there are still 1.4 billion adults worldwide without access to basic financial services. Mobile money adoption in sub-Saharan Africa has played a pivotal role in expanding account ownership, with 55 per cent of adults having an account, more than three times the global average. Despite progress, there are still gaps in financial inclusion, particularly in sub-Saharan Africa and Rwanda, where the gender gap remains at 12 per cent and nine per cent, respectively. Technological advancements and innovations, such as the mobile money revolution, have the potential to bridge these gaps. With over 1.3 billion registered mobile money accounts globally, digital payments have facilitated swift government responses to crises like the COVID-19 pandemic and climate-related disasters. These technologies have enabled cash transfers to vulnerable populations, reduced the cost of accessing financial services, and contributed to economic growth. FinTech innovations are also playing a significant role in closing the finance gap for micro, small, and medium enterprises, enabling access to credit, process automation, and new e-commerce services. Partnerships between banks and FinTechs are allowing unbanked MSMEs to access credit using alternative scoring mechanisms and digital loan disbursement technologies. These innovations are lowering transaction costs, increasing transaction speed and security, overcoming geographical barriers, and providing tailored financial services to different segments of society.