The Rwandan government has ambitious goals, as part of its Vision 2020 plan, to bring financial services to the majority of the population.
Since 1995 the Rwandan Government has taken steps to deepen and liberalize the financial sector. Efforts are underway to improve the links between the financial system and the masses. Restructuring plans have been agreed between the BNR and the commercial banks.
A legal framework for micro finance institutions has been considered and are to be restructured so as to enhance their role in providing services to rural areas and in encouraging savings mobilization. Commercial banks are being encouraged to concentrate more on financing private sector activities in particular productive sectors including small scale projects. Government is also considering directing credit to particular sectors for instance agriculture which currently only receives 2% of bank credit.
In this respect, MobiCash is supporting Rwanda in its mission and will help deliver programs and technologies that extend access to financial services for people throughout the country.
The launch of the BioCash initiative is part of national efforts to ensure the Government achieved “an optimal balance between the banked and the unbanked. The system will lay a basis for KCB Bank to jointly deal a massive and decisive blow against the financial inclusion and poverty alleviation.
The excitement on this new delivery channel is due to the promise to bring about a breakthrough of major importance into the mobile payment ecosystem. BioCash offers the possibility of massive outreach to people in locations that remain underserved, especially those in hard-to-reach rural areas. Some channels, including retail agents such as supermarkets, churches or drug stores that act as banking agents, may bring the industry closer to significantly serving more Rwandan with or without a mobile phone.
This is the beginning of a fundamental change in the monetary system in Rwanda. The implementation of fingerprint-banking means that every Rwandan who is over 16 years old and has a national-ID could virtually and instantly be included in the financial space and connect fingerprint to a virtual bank account.
This method allows a safer, easier, faster and more efficient paying process. MobiCash expects the rate of robberies to decline drastically since people dont carry any more cash or credit cards with them.
In our opinion, Rwanda will be definitely World first country using this system to bank all of its citizens without exception.