Rwanda: I&M Bank Looks to Agency Banking to Drive Growth

 I&M Bank is looking to introduce agency banking to ease access to its service and deepen market reach in the increasingly competitive local financial sector.

Robin Bairstow, the managing director of I&M Bank, said the service will be rolled out in coming months as one of the ways to support the government's efforts geared at increasing access to finance and banking service, as well as attracting more people into the formal banking sector.

Bairstow was reacting to request by Karongi District private sector members during the bank's customer outreach in the area on Thursday.

Speaking earlier on behalf of the local private sector branch, Amiable Urimubenshyi, the chairman of the Private Sector Federation in Bwishyura sector, urged the bank management to establish a branch in the sector, arguing that business people were spending a lot of time and money travelling long distances to access the bank services.

This, he said, was increasing the cost of doing business for the bank's customers in Bwishyura sector. Presently, only Bank of Kigali, Equity Bank and KCB Bank Rwanda offer agency banking services in Rwanda.

However, more financial institutions are looking to the initiative to help cut costs of running fully-fledged bank branches. Bank agencies are run by private business people and are under the supervision and guidance of mother banks.

The initiative has been supported by the increasing Internet connectivity that is driving mobile banking in the country.

Paul Jabo, the executive Secretary of the Western Province, lauded the bank's outreach programme.

He said the bank should take advantage of the many businesses in tourism, agriculture, mining, and transport sectors to extend its services in the area.

The event was attended by members of the private sector, government officials and other customers, who interacted with the bank management and other bank employees. The bank pledged improved customer service and products that meet clients' needs.

SOURCE:THE NEW TIMES