The BusinessWeek, KIGALI, RWANDA—A Rwandan bank has introduced ‘mVisa’, a mobile banking solution, in a bid not to be left behind in this fast growing area of financial services.“The mVisa which comes as the first innovative electronic product in the world will allow the bank’s clients to easily access their bank’s account via their phone and also help encourage non- account holders mainly rural folks to be bankable.
We are proud to be the first bank to launch this product in the world,” Lawson Naibo, the Bank of Kigali’s Chief Operations Officer said last week.
The product, designed by Visa Inc., has interoperability to mobile money in Rwanda and will see Bank of Kigali, Rwanda’s leading bank by market share, attempt woo more clients from the rural areas.
“Our product is an interoperable mobile branchless banking solution. It can service account holders from any other financial services provider in the country,” Naibo said.
“When Tigo and MTN extended their mobile money and included more features for its clients, it was obvious that the banking sector was feeling a pitch, because people were following convenience,” Job Opar, a consultant told East African Business Week in an interview.
People were picking interests in mobile banking products that’s why we were encouraging financial institutions to come up with innovative products to satisfy the customer demands,” Rita Ngarambe, the Executive Secretary of Association of Micro finance Institutions in Rwanda (AMIR) said.
Apparently, the banking sector was not happy late last year when Tigo launched its improved electronic wallet where a subscriber could pay bills, pay transport fares, transfer money to another person , or be able to buy products from a shop without holding cash.
Tigo Rwanda recently launched ‘tigomatic’ which allows people to access tigo cash mobile wallet , pay bills, withdraw or deposit using an Automated Teller machine operated by Tigo itself.
“To contain the grip from telecom companies, the banks thought partnership with mobile operators to carry out mobile money transactions for the the bank’s clients within the bank, something that instead gave another edge to telecoms.
“It was hard to convince someone who is already used to going to the agent on the street, transact his financial business to go to the bank again and join the long queues,” Gerald Jabo, a microfinance banking consultant said.
Nevertheless, with the launch of mVisa, a mobile banking solution, banks have the best armour to punch bank to telecoms.... Read more
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