Bank of Kigali (BK) has announced that it will roll out new Automated Teller Machines (ATMs), with additional features to process deposits, while KCB says it plans to launch Visa Debit Cards in the competitive banking sector. Kenya’s Equity Bank is expected to launch its operations in the country this year.
Rwanda’s banking sector has evolved with the entry of regional and international players, as well as, more diversified products. And it is projected to emerge much stronger this year, largely occasioned by the country’s status as an ideal investment destination and the central bank’s financial sector reforms.
According to the central bank, the developments in the banking industry continued to show a healthy trend as a result of prudent policy measures that were instituted. This is part of a wider policy move meant to boost the competitiveness of the entire economy.
With projections indicating that local banks are poised for greater profitability this year, the sector is very likely to attract more players, which will increase competition for deposits.
This will shift focus to Small and Medium Enterprises (SMEs), which have the potential to propel the economy to greater heights.
Currently local banks prefer lending to large companies because they perceive SMEs as risky clients.
The projected growth will also lead to higher profit margins and more returns for shareholders and even attract more players.
At the end of the day, it is the not only the economy that will benefit, but the consumers too. With cut throat competition, products will be more affordable and financial services will reach larger segments of the population.