The Central Bank Governor, François Kanimba, has challenged bankers to think out of the box and be innovative when it comes to offering products and services to clients.
The governor said only innovations and introduction of new products will attract clients to access financial services.
Kanimba said that although banks were rolling out new branches across the country, it was equally important for the banking sector to complement these expansion programmes with increased product innovation and diversification.
The Governor made the call last week during the official launch of new offices for Banque Populaire du Rwanda’s (BPR.
He added that the Central Bank as the regulator is determined to help banks introduce new product lines to stimulate savings and channel these savings into investment.
“I wish to support the current initiatives by banks to develop saving products and even request commercial banks and non bank financial institutions to be innovate in this area by designing new products to play a critical role in saving mobilisation in Rwanda,” Kanimba said.
Statistics show that only 14 percent of the Rwandan population uses banks while three percent save with Microfinance Institutions (MFI) and 52 percent are financially excluded.
The low penetration rate by financial institutions is attributed to a tiny development of savings products and little or lack of fiscal incentives for savings.
There is also very little development of private pension and collective investment schemes.
According to the Governor, the National Bank of Rwanda will continue to play an advisory role and cultivate partnerships with the financial institutions to put in place a framework necessary to build strong institutions to mitigate risks and build confidence in the financial system.