Access to Finance Rwanda: What going digital means for Rwandan SACCOs

Access to Finance Rwanda has partnered with 11 savings and credit cooperatives (SACCOs) in Rwanda to deploy a banking software aimed at automating transactions and reducing operational costs. The agreement, signed last week, targets non-umurengue circles, which cater to low-income individuals in Rwanda. This initiative also includes the association of microfinance institutions with membership across the country, with plans to digitize operations and enhance efficiency. The project, spanning over a year, is set to benefit close to 50,000 members within these 11 circles, with the potential for other circles to join in the future. The core banking system, centralized at the National Data Center, will enable SACCOs to offer financial services more efficiently through mobile and agency banking services. By leveraging technology, SACCOs can provide members with services without the need for costly physical branches, thereby simplifying access to financial services for their clientele. Additionally, the partnership emphasizes capacity building for SACCOs, focusing on improving procedures, policies, governance structures, risk management capabilities, and credit administration. The association overseeing the project aims to ensure the sustainability of this digital intervention beyond the initial support phase. Access to Finance Rwanda is committed to facilitating the transition of SACCOs to the new digital system, investing in resources necessary for data migration, system deployment, and capacity building. While the financial investment involved in this transition is significant, the long-term benefits include reduced operational costs and maintenance fees due to the shared platform among SACCOs. This strategic move towards digitization is expected to streamline operations, enhance efficiency, and improve financial reporting for SACCOs, ultimately benefiting both the institutions and their members. By adopting modern technology and digital channels, SACCOs can improve customer service, increase access to financial services, and comply with regulatory requirements more effectively.