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CONCLUSION
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The FinScope surveys provide data and financial inclusion indicators for tracking trends and
progress in the financial sector, shedding insights on consumer behaviour and demographic
dynamics, private and public sectors innovations, as well as policy changes and interventions.
Implementation of these surveys are of importance in advancing and deepening financial
inclusion, as this report provides an overview of Rwanda’s financial sector and how the gen-
eral population engages with it while tracking the changes in their interaction from the 2020
survey. The FinScope Rwanda 2024 revealed how Rwandans, 16 years and older, manage
their finances and the elements that influence their uptake and use of financial services. The
following conclusions were drawn from this survey.
Rwanda stands out as one of the most financially included countries in East Africa, making
its financial inclusion journey particularly inspiring. Since 2020, there has been a substantial
increase in formal financial inclusion, reducing the number of adults reliant solely on infor -
mal mechanisms to just 4% in 2024, down from 16% in 2020. Additionally, the percentage of
excluded adults has decreased from 7% in 2020 to 4% in 2024. Rwanda has achieved 96%
financial inclusion, with formal inclusion at 92%, surpassing the 2024 target of 90% and on
track to achieving the ultimate goal of 100% financial inclusion.
Key highlights of Rwanda’s remarkable progress in financial inclusion include:
96% of the population 16 years and older are financially included implying that they have or use financial products/services, whether formal or informal. The urban-rural gap between financially included adults has reduced to 1% from 6% in 2020, owing to the use of mobile money, and the gender gap also reduced to 2% from 5% in 2020 to 3% in 2024.
Three-quarters (77%) or 6.3 million of adults in Rwanda have an account through either mobile money and/or a bank account that allows them to perform financial trans- actions (up from 64% in 2020). About 1.7 million (21%) adults are using both mobile money and bank accounts to manage their financial needs whilst an additional 56% use mobile money only. This highlights the important role mobile money is playing in terms of pushing the boundaries of formal financial inclusion and reaching out to previously excluded groups. About 23% do not have either a bank account or a mobile wallet but 17% of these use Umurenge SACCO showing the role of SACCOs in reaching the unserved markets. Rwanda FinScope Survey 2024 73 Banking There is a decrease in the proportion of bank users from 36% in 2020 to 31% in 2024, though, the decline is mostly driven by the number of people who use banking channels indirectly from 14% to 9% between 2020 and 2024. The number of individuals with bank accounts in their name increased to 1.8 mil- lion (22%) from 1.6 million (22%) in 2020. The growth in the banking industry was overridden by the growth in the adult population. The main barrier to not having a bank account is the availability of other alternatives such as mobile money. Mobile money There has been a remarkable growth in the uptake and use of other formal (non-bank) mechanisms, largely driven by mobile money. About 86% (6.9mil- lion) of the adults reported having used mobile money in 2024, mainly to de- posit and withdraw money, remit, and make payments. Most of those who have used mobile money have accounts in their name, 77% (6.3million) in 2024 up from 62% in 2020. The main barrier cited by the majority was not having a mobile phone. 22% of adult Rwandans use mobile phone belonging to someone else.
A large proportion of Rwandans (72% or 5.9 million) still rely on informal mecha- nisms but positively only 4% now exclusively use informal mechanisms down from 16% (1.1million) in 2020. Approximately, 68% use a combination of formal and informal financial products and services to meet their financial needs, showing that informal services are used as complements.
Majority of Rwandan adults (85%) have saved either formally or informally in 2024. Though the proportion remained similar to 2020, there is an increase in the actual number of adults who saved from 5.9 million in 2020 to 6.9 million in 2024. However, most Rwandans save in non-bank (54%) and informally (60%) with only 17,6% saving in a bank. Umurenge SACCOs and mobile money drive the non-bank formal savings. Important to note is the rise in adults saving via LTSS/Ejo Heza to accumulate savings for old age.
Formal credit levels increased from 22% (1.5million) in 2020 to 24% (1.9million) in 2024. Bank credit uptake also increased to 825K (10%) from 568K (8%) in 2020. There is a huge drop in adults who have sourced credit from informal sources (borrowing from savings groups and store credit) down to 47% (3.8million) from 61% (4.4million) in 2020. The demand of credit is driven by two main reasons: Production and consumption, with business owners/self-employed individuals borrowing mainly for investing in their business.
Subscription to insurance increased drastically from 17% (1.2 million) to 27% (2.1 mil- lion) in 2024, mainly driven by microinsurance products that were introduced including the National Agriculture Insurance Scheme products focusing on a number of crops and livestock. Farming is still the mainstay of household livelihoods and since climate change shocks are apparent, most farmers need help adopting climate-resilient crops and farming methods, including raising awareness of green finance and agricultural risk mitigations.
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RECOMMENDATIONS
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While levels of financial inclusion are relatively high in Rwanda and surpassing the 2024 target,
there is still room to further reduce the levels of those who do not have transaction accounts
(bank accounts and/or mobile money). However, the greatest opportunity will come from
ensuring financial inclusion that goes beyond access and uptake to include measuring the
impact of financial inclusion and financial health in Rwanda.
The priorities of financial inclusion in Rwanda continue to ensure that the lives of Rwan-
dans are improved. The following areas could be prioritized to achieve this goal:
In light of the research findings, it is recommended that financial sector in Rwanda consider
adopting and integrating the financial inclusion agenda linked to human development (repre-
sented in SDGs) clustered in Inclusive growth, basic services for low income and vulnerable,
and sustainable future. The following specific recommendations are provided:
Supporting initiatives that address real economic needs through better usage of ap- propriate financial services: • Identify and facilitate the implementation of financial interventions that will im- prove the resilience and sustainable livelihoods of the target groups (informal sector, MSMEs, women and youth). • Invest in the programs that are aimed at empowering most underserved catego- ry including –women, youth, PWDs, refugees, farmers and among others. Map and continue addressing all constraints that are hindering high usage of credit and other alternative financial instruments in the market. Technology and Data could paly an important role in unlocking credit to the private sector and at scale.
Continuation of expanding roadmaps that will support and improve uptake and use of financial services for the most vulnerable groups and unserved markets. This includes expanding the women and youth financial inclusion pillars within the NFIS, through es- tablishing specific interventions for implementation. Financial service providers should also continue to find ways of extending the product line to include investment and insurance in addition to the products individuals use already.
Rwanda is on the right track to achieving a cashless society. The growth of DFS indi-
cates that a more digital future is imminent. Initiatives that support digital transactions
or savings in the formal sector must be promoted and incentivized.
Create awareness and make the case attractive for the payment of interest on
Mobile Money wallet balances to customers, to test the elasticity of customers
to use interest on savings (via mobile wallets).
Continue ensuring customer protection, digital literacy are strengthened
through consumer education.
Saving groups remain relevant in Rwanda. Thus, FSP/DFS providers should con-
sider mimicking the value proposition offered by informal savings groups when
designing their products/ services to appeal to many informal product users
through a channel that has proven to be much convinient to them.
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With the increasing popularity of mobile money, banks should look into partnering with telephone companies. There is an opportunity to tap into this huge market with an increasing customer base. Banks can offer products to mobile phone users.
Fintechs are essential to expanding the availability of financial services and encourag- ing market competition, which benefits consumers. The supply of loans, particularly to farmers and MSMEs, is one area where fintechs may potentially have a disruptive im- pact in this market. Policy interventions that seek to expand access to credit for these segments are a priority for economic growth. Greater use of the available guaranteed programmes will encourage banks to lend to creditworthy enterprises and farmers who may lack a credit track record.
FSPs and key stakeholders should continue to understand the market and increase uptake of second-generation products through: I. Goal-Based Savings and Insurance: Offer savings or insurance products tied to specific goals, such as education, farming, or housing. II. Alternative Credit Scoring: Use alternative credit scoring models to increase ac- cess to credit for underserved populations and offer digital lending platforms for easy access to credit. III. Microinsurance: Offer microinsurance products for low-income individuals and provide financial education to help individuals understand the importance of insurance. IV. Auto-Enrollment in Pension Plans: Continue the excellent work done under Ejo Heza and Implement auto-enrolment in pension plans for employees to increase re- tirement savings. V. Financial Education Initiatives: Implement initiatives that improve financial educa- tion and literacy, empowering individuals to make informed financial decisions.
Continued monitoring and evaluation of financial inclusion targets. Measuring finan- cial health indicators on the quality and impact of financial services needs to be the cornerstone and baseline of this priority area. Improved financial health indicators will support high-quality and consumer-centric product initiatives. Additionally, ensuring that financial inclusion priorities are streamlined in government ministries and agencies as well as development partner programmes (promoting sector and policy cooperation and coordination is required).
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South
A frica
Lesotho
S waziland
M adagascar
M auritius
R wanda
B urundi
U ganda
M oz ambique
T anz ania
K eny a
E thiopia
C amer oon
N igeria
Ghana
C ote d’I voir e
T ogo
B enin
B ur kina
F aso
T unisia
E gypt
S udan
P akistan
I ndia
N epal
M y anmar Laos
T hailand
C ambodia
DRC
Z imbabwe
Bots wana
N amibia
Z ambia
T he Gambia
H aiti
Repea t cycle
First cycle
Po tential first cycle
U nderw ay
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FINSCOPE FOOTPRINT
FinScope surveys allow cross-country comparisons and sharing offindings which are key in
assisting ongoing growth and strengthening the development of financial markets.