Players in the banking industry in Rwanda have been urged to harness the power of technology in driving innovation and inclusion while ensuring financial practices remain sustainable.

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This was highlighted during the inaugural research conference themed, "The Financial Technology, Innovation and Sustainability Interplay in Rwanda- Emerging Opportunities and Risks”, held on May 9, at the Kigali Serena Hotel.

The conference was organized by the Research Centre, which was established last year by Rwanda Bankers’ Association (RBA) to facilitate intellectual engagement and dialogue between scholars, practitioners, and policymakers in the financial market for resilience, inclusivity, and sustainability.

Hannington Namara, MD of Equity Bank Rwanda and Chairperson of RBA, said the conference is yet another major milestone for the financial sector to elevate knowledge and make research-based and data-driven decisions.

"It is the first time that as an industry, we get together to start gathering insights and evidence-based actions as we make decisions in different ways that will shape how we do business,” he remarked.

Namara emphasised that the research findings should be able to apply in day-to-day operations aiming at optimising customer experience, and financial inclusion for people in Rwanda and across the region.

"No doubt we shall use the knowledge we gather from different places, including the research papers to position Rwanda’s financial sector as a beacon of excellence grounded in the pursuit of knowledge and relentless drive for progress,” Namara noted.

Bankers see research enabling them to deal with some of the existing and emerging challenges.

Soraya Hakuziyaremye, Deputy Governor of the National Bank of Rwanda, said that while emerging technologies, imperativeness of sustainability, and climate-related financial risks are reshaping the banking landscape, research stands as a compass to navigating both challenges and opportunities for growth.

"Investing in research is embracing a culture, we will gain deeper insights into market dynamics, we will anticipate future trends, and develop innovative solutions to meet the evolving needs of our customers,” she said.

She took note of the role technology such as mobile money and internet banking has played in driving financial inclusion in Rwanda. Mobile money penetration surged from 39 per cent in 2016 to 60 per cent in 2020, contributing to bridging the financial inclusion gap.

"As we move forward, we must strike a balance between leveraging technology for innovation and upholding sustainable and inclusive practices as essential for nurturing a resilient and inclusive financial ecosystem,” she added.

Hakuziyaremye urged stakeholders to harness the power of technology in driving innovation while ensuring financial practices remain sustainable.

Kayode Babarinde, Executive Director of Africa Blockchain Institute, presented his research on the impact of existing regulations on the use of Blockchain technology for financial inclusion in Rwanda that highlighted the use cases, opportunities, and hindrances of its adoption in the country.

"It is my hope with my research findings that regulators go back to drawing boards and first engage stakeholders that are using, or are open to using this technology. This will increase trust between consumers and policymakers,” he observed.

The research findings are also intended to drive innovative solutions in the market, he added.

Other papers presented include ‘Inclusive Innovation: Bridging the Digital Divide through Mobile Financial Services in Rural Areas,’ ‘Maximizing Commercial Lenders’ Sustainable Impact in Rwanda’s Housing Sector,’ ‘Climate-Related Risks and Green Finance: The Case of Rwanda,’ and ‘Commercial Banks in Rwanda Merger and Acquisition Experience.’

Tony Francis Ntore, CEO of RBA, said that the research produced will harness competitiveness in a way that the banks will make informed decisions from research to make market-tailored products.

According to him, this is proof of the impact of the research centre which kicked off in September 2023 in terms of responding to the needs of member banks to have a collective database of research findings on real market issues.

"These papers will be published for wider access and we will be receiving comments from various people, and we will also launch the state of the banking industry in Rwanda,” he said, adding that the researchers are from different parts of the continent.

The event also featured a discussion on the state of technology adoption in the banking sector, and sustainability outlook, among key financial issues.