Local Banks need to be innovative

It is encouraging to see some Banks in Rwanda introduce new and innovative products in the local banking industry. The recent announcement that a number of Banks have introduced advisory services in support of small and medium enterprises should be applauded.

It is encouraging to see some Banks in Rwanda introduce new and innovative products in the local banking industry.

The recent announcement that a number of Banks have introduced advisory services in support of small and medium enterprises should be applauded.

These types of services complement traditional commercial banking services that we have been used to.

Understanding clients’ needs and aspirations through business coaching and related services goes a long way to boost the relationships between banks and the business community.

These new type of services offered will also support the Small and Medium Enterprises (SMEs), which are considered the engine of our economy.

The new services, in one way, can lead to banks utilizing the local financial resources that have so far been marshalled, in a more equitable way. Central Bank says that liquidity to the private sector needs to be improved to boost access to credit, thus supporting the economy.

And, one way of doing this is through establishing advisory services by banks for the purposes of improving supervision and management of loans granted.

These new services have a potential of offering better guidelines to steer the SMEs towards sustainability.

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