“But the banking halls are full of long queues still,” expressed Victor in confusion after making yet another payment on his bank’s mobile app. Despite heavy investments and rapid advancements in digital banking services like internet and mobile banking, many Rwandans, like Victor, still find themselves at the bank for everyday transactions. This highlights a critical disconnect. Is it a matter of trust that customers prefer face-to-face banking over the convenience of digital platforms? Is it simply a lack of awareness, or a force of habit? Even in an increasingly digital world, can the banking sector truly thrive without maintaining the personal touch that in-person banking offers? These questions lie at the heart of the evolving banking landscape in Rwanda. Understanding customer preferences in banking Rwanda’s push towards becoming a cashless economy has spurred significant innovations in the financial sector. According to the 5th Finscope Survey Report 2024, the use of digital financial services surged to 73% in 2024, up from 30% in 2020. This growth primarily includes paying for services like bills, utilities, taxes, and insurance. A closer look at the banking industry reveals that customer preferences are not uniformly aligned with the usage of these advancements. Bank of Kigali statistics show that about 42% of customers still prefer in-person, over-the-counter services, while 58% prefer the convenience of digital banking. Among digital users, the favourite services are account-to-wallet (MoMo) transfers, BK-to-BK account transfers, and RRA bill payments. This gap highlights that while banks offer a wide range of digital services many customers still prefer in-person banking for these tasks. Digital banking has clear perks like efficiency, speed, and accessibility. But the slow shift from traditional to digital banking shows some underlying issues. Many customers either don't know about all the digital options available or they’re wary of their reliability and security. Personal interactions and the reassurance they offer are big reasons people stick with traditional methods. Furthermore, we cannot ignore the human connection. Some customers simply enjoy visiting their banks to chat with the staff, building a sense of community and personal rapport. This social aspect of banking creates trust and loyalty, something digital interactions often can't match. Finding the perfect balance As a customer-centric industry, the future of banking lies in finding the perfect hybrid model that balances digital innovation with the personal touch. Banks should invest in state-of-the-art technology that is safe, secure, and reliable, giving customers peace of mind about their money. At the same time, they should personalise banking and offer unique solutions, which is the beauty of in-person interactions. One way to personalise banking is through Artificial Intelligence (AI). AI can revolutionise customer experiences by enabling biometric identification, like opening accounts with FaceID or fingerprint recognition. It can also enhance digital customer support by delivering personalised messages and tailored services, such as flexible overdraft options based on individual paydays or birthdays. By leveraging AI, banks can understand their customers more quickly and accurately, meeting their needs promptly. In addition to these advancements, banks should focus on making their digital platforms more attractive, engaging, and solution-oriented. The goal is to create a digital experience so compelling that customers naturally gravitate toward it as their preferred method of banking. Essentially, banks should continue to know their customers on a personal level. This approach ensures that digital banking complements rather than replaces the familiarity and trust built through in-person interactions. Overcoming challenges The Rwandan banking sector stands at a crossroads, and finding the perfect balance is not without its challenges. Developing and maintaining both digital and physical infrastructures is costly but necessary. Banks need to invest in cutting-edge technologies while also making sure customers understand, trust and feel comfortable using digital tools. Continuous education is key—workshops, tutorials, user guides, and dedicated support can help ease the transition, ensuring no one is left behind in the digital age. These efforts to merge the two worlds also depend on the accessibility of digital devices and internet penetration within the Rwandan population. According to the 5th Rwanda Population and Housing Census 2022, 78.1% of households have at least one member who owns a mobile phone, and a quarter of the population with phones owns smartphones. This means there is a solid foundation to build on, but there's still work to be done to ensure everyone can benefit from digital banking advancements. Conclusion While digital banking offers convenience and efficiency, the personal touch should remain at the heart of the banking experience. The challenge lies in integrating these two worlds, where technology and personal connections blend seamlessly. Banks need to create an environment that harnesses the power of digital tools while still nurturing the personal relationships customers value. Only by solving this puzzle can Rwanda’s banking industry truly thrive in the modern era. The author is Chief Operating Officer, Bank of Kigali.
