KCB Bank Rwanda affirms commitment to digital solutions

KCB Bank Rwanda has reaffirmed its commitment to digital solutions as the country aims to achieve universal financial inclusion by 2020. In a recent interview with CNBC Africa, George Odhiambo, the Managing Director of KCB Bank Rwanda, delved into various aspects of the banking industry, shedding light on issues such as non-performing loans, loan rejection rates, pricing regulations, infrastructure projects, and investment trends. Odhiambo emphasized the importance of quality underwriting and monitoring in maintaining a low ratio of non-performing loans at KCB, despite industry trends suggesting otherwise. He explained that the loan rejection rates may rise due to high demand for credit, but it does not solely dictate the bank's response to market demand. Additionally, he highlighted that pricing regulations on loans are market-driven and stated that KCB focuses on partnering with various stakeholders to support key sectors such as agribusiness, housing, and SMEs. Regarding recapitalization and accessing cheaper funding for infrastructure projects, Odhiambo mentioned that shareholders contribute capital when needed, while development partners also play a crucial role in providing financial support. Despite perceptions of KCB being a mortgage bank, Odhiambo clarified that the bank is a universal bank catering to a wide range of banking services, including mortgages. He addressed concerns about individuals investing in government securities over bank deposits, stating that this trend does not significantly impact KCB as most customers still prefer commercial bank services. Odhiambo acknowledged the mismatch between short-term deposits and long-term investments supported by the bank, noting that economic activities with consistent cash flows help sustain long-term investments like mortgages in the banking system. Looking ahead, Odhiambo hinted at KCB's focus on digital banking solutions to enhance customer experience and drive financial inclusion in Rwanda's evolving banking landscape.