Rwanda aims to go cashless by 2024 with launch of multiplatinum currency

I&M Bank Rwanda has recently introduced a groundbreaking multi-currency platinum card, marking a major development in the banking sector. In an exclusive interview with CNBC Africa, Robin Bairstow, the CEO of I&M Bank Rwanda, discussed how this new product is set to revolutionize the way customers manage their finances and travel seamlessly across borders. The multi-currency platinum card allows users to load up to 15 different currencies, with the flexibility to switch between six currencies at any given time. This unique feature gives customers complete control over their card via an online portal, enabling them to stop, start, or block the card for specific transactions. Additionally, users can restrict card usage in certain countries, providing enhanced security and convenience. The card also offers standard protections such as insurance coverage for lost cards, along with exclusive benefits like access to airport lounges and free shipping for online purchases, particularly from the US. Bairstow emphasized that one of the key advantages of the multi-currency platinum card is its accessibility to a wider range of customers, not necessarily limited to existing bank clients. For a small fee, individuals can obtain the card and enjoy the perks of global lounge access and a cashless payment experience, reducing the need for carrying large amounts of cash. This innovation aligns with Rwanda's vision to transition towards a cashless economy by 2024, a goal that the country has been actively pursuing through various initiatives. Bairstow highlighted that the multi-currency platinum card contributes significantly to this objective by simplifying both domestic and international transactions. Foreign visitors can easily convert their US dollars into the card upon arrival in Rwanda, facilitating cashless transactions during their stay and simplifying currency exchange processes. Moreover, Rwandan residents can benefit from the card's convenience and accessibility, especially in a market where credit card penetration remains relatively low. The introduction of the multi-currency platinum card is expected to accelerate Rwanda's cashless journey and promote financial inclusivity among diverse customer segments. As investors await the Q2 results of I&M Bank Rwanda, Bairstow provided insights into the bank's performance, noting a 6% increase in operating costs. He attributed this rise to specific one-off expenses, including investments in core banking systems and staff retirement arrangements. Despite these challenges, Bairstow expressed confidence in the bank's growth trajectory for the year, emphasizing its commitment to nurturing young talent and driving long-term sustainability. Discussing recent monetary policies, Bairstow addressed concerns regarding lending rates and consumer preferences. He highlighted a slight decline in average lending rates following the implementation of credit reference bureaus and reduced impairment costs across the banking sector. This trend aligns with the central bank's efforts to align market rates with official benchmarks, promoting transparency and stability in the financial sector. Regarding the central bank's decision to increase banks' recapitalization to 20 billion Rwandan francs, Bairstow clarified that well-capitalized banks would not be significantly impacted. He downplayed speculations of widespread consolidation in the industry, suggesting that mergers would occur based on strategic synergies rather than regulatory requirements. Bairstow concluded the interview by affirming I&M Bank Rwanda's focus on innovation, customer-centric solutions, and sustainable growth strategies. The launch of the multi-currency platinum card reflects the bank's commitment to driving financial inclusion, modernizing payment systems, and facilitating seamless transactions for individuals and businesses in Rwanda and beyond.