L-R Q-Lana CEO and co-founder Christian Ruehmer, BK CEO Dr. Diane Karusisi and Innocent Kawooya, CEO HiPipo during a Fintech panel on digital lending
The Bank of Kigali (BK) has demonstrated how the ‘Macye Macye’, a Device Financing program is one of the fastest growing product which has enabled access to digital lending in Rwanda.
The product, funded by the Bank of Kigali in collaboration with MTN Rwanda, was launched in December 2022 as part of the digital drive to ease purchase of smartphones and tablets on credit from any MTN Service center, franchisee shop, or other retail distribution point.
At the ongoing Inclusive Fintech Forum 2023 in Kigali, the Bank of Kigali Chief Executive Officer, Dr. Diane Karusisi, on June 21st, 2023 took part in a panel on “Scaling Digital Access to Lending” where she was asked to explain how the bank has played a significant role in providing digital lending services.
Dr. Karusisi revealed that the ‘Macye Macye’ product currently has a 30% growth month-on-month and with almost zero percent non performing loans (NPLs) which addresses gaps on digital lending services which are currently less than 30% in access.
“As we speak today, this is one of the fastest products at Bank of Kigali. And besides growth it’s the most successful and profitable products,” Karusisi said in response.
BK officials in charge of micro lending services told KTPress that the Macye Macye’ product currently has managed to lend over Rwf10billions in Device Financing and this is expected to grow further with demand for digital connectivity.
Karusisi said that the success story of Device Financing product was as a result of partnerships with a Fintech (Qlana) in Rwanda allowing innovation to drive the BK digital transformation drive.
“If it was not for partnering with Fintechs we would barely make it through the COVID-19 pandemic where digitalised customer and services served us more than we expected,” Karusisi said.
She also said that increasing access to smart devices will increase access to digital services including lending.
While Rwanda has a success story in device financing lending, the panel stated that there are many gaps such as customer centric services and flexibility in mobile loan access and amounts, that need to be improved in Africa to allow more unbanked persons to access digital lending services especially with the. growing numbers of mobile money accounts.
