Students have been challenged to desist from informal money handling practices and invest in bank products that offer good returns to start bigger investments.
“It is not smart to use banks only when you are depositing school fees or looking for credit to start a business or pay school fees. That’s the old culture of doing things, which does not promote self-development,” Maurice Toroitich, the KCB Bank Rwanda managing director, said.
Toroitich was addressing students of Wellsprings Academy in Kigali during a mentoring session as part of the recently-concluded Global Money Week at the bank’s head offices in Kigali.
“Most people go to banks when they need to borrow money, which makes them indebted without any investments, yet if only they obtained interest from their savings, it would facilitate them to start up businesses,” he said.
According to Toroitich, saving does not need one to have a lot of money, it is a culture that should start from when a child receives a coin from a parent.
“There are several accounts, including the children’s Cub account, where the bank offers interest rate on savings that range from 5 to 8 per cent per annum, hence yield good capital after sometime,” Toroitich added.
Bosco Iriboneye, the head of credit managing department, said when one secures credit from the bank, they must service the loan ‘religiously’ to improve their creditworthiness and benefit from low interest loans.
“Students nowadays can access loans, but a few of them ignore their obligations and default. Remember, only those who pay their loans well receive privileges and loan certificates,” Iriboneye said.
The students also toured the different departments of the bank, where they were taken through the operations of various sections.
The students said they learnt a lot from the bank tour. Kaliisa Eric said he learnt how to operate his own account, while Daniela Rhema Mugisha said she learnt about the benefits of saving with banks, and also about prudent practices.
“I did not know about the loan recovery process and how banks make profits, but I have now understood how banks make money, among other things,” said Joy Gatabazi.
Joyseln Uwineza was interested in the children’s account, and was impressed by the IT department’s work, especially how they co-ordinate the bank’s operations.
Sharon Bayingana said: “We have visited several departments, like the treasury section, and now I know who to approach when I need a particular service from the bank.”