Rwanda leads the way in financial inclusion

Rwanda has emerged as a leader in financial inclusion, with 5.2 million Rwandans being financially included, reflecting 89 percent of the adult population, according to the Finskop Survey on Financial Inclusion. The MasterCard Symposium on Financial Inclusion 2016, held in Kigali, Rwanda, showcased Rwanda's model for financial inclusion and how other players in the industry can learn from it. Judith Akan, the Technical Director at Access to Finance Rwanda, explained the various contributions that Access Finance, Rwanda, has made at different levels to enhance financial inclusion. This includes efforts at the policy and regulations level, capacity building domestically, and ensuring that clients have access to financial services at the micro level. In addition to these macro-level initiatives, there have also been projects aimed at demonstrating that low-income individuals in Rwanda can access and utilize financial services effectively. A key focus of the discussion at the symposium was on behavioral insights and behavioral science. The Finskop 2016 survey revealed that despite 86 percent of Rwandans owning phones, only 65 percent were using mobile financial services. This pointed to a lack of knowledge on how to use such services among the population, leading to low usage rates. This information has prompted organizations in the financial sector to rethink their marketing and communication strategies to enhance the uptake of financial services. Understanding the specific needs of different demographic groups, such as women and youth, is crucial in tailoring approaches to reach them effectively. Utilizing behavioral science can inform decision-making and drive the financial sector towards greater inclusion. Aiming for universal financial inclusion by 2020 presents both challenges and opportunities for the African continent. While achieving this target is feasible with innovative strategies and leveraging technologies like mobile financial services, reaching every individual may pose certain difficulties. However, the use of behavioral science and data-driven approaches can accelerate progress towards the 2020 goal. The collaboration between financial institutions, mobile network providers, and policymakers will be essential in bridging the gap and ensuring that all segments of the population have access to financial services. By incorporating behavioral science into their strategies, stakeholders can address the unique needs of different demographic groups and work towards a more financially inclusive society.