The Association of Microfinance Institutions in Rwanda (AMIR) has established an economic arm in 2015 to financially support and boost the implementation of AMIR’s programmatic activities. This economic arm called – AMIR Consult Ltd (ACL) – was mandated to foster AMIR’s sustainability by transacting economic services with microfinance sector practitioners through consultancies and technical assistance and also by becoming a one stop center for services to MFIs and SACCOs in Rwanda.
In line with the Government’s Financial Inclusion endeavors, AMIR – ACL proactively support its members to set financial outreach programs and strategies to better serve banking consumers by developing appropriate products and related service delivery channels; so as to sustainably overcome any challenge that may hinder financial inclusion in urban and rural areas.
Mobile Money Service is one of the popular strategies that various financial institutions employ to achieve financial inclusion and cashless economy. Commercial Banks are competing to increase the number of clients and Mobile Money service users yet microfinance institutions have not been left behind in these endeavors.
Vision Fund Rwanda (VFR), a microfinance company of the World Vision, has launched a mobile banking platform dubbed M-Hano Agent which aims at increasing access to cashless payments for low income earners, especially in rural areas, at affordable prices. This is in line with the government’s program to promote financial inclusion and a cashless economy.
The platform doesn’t require an application and can be accessed with any mobile phone by dialing *530 #. The platform is a complement to existing services offered by VFR in its 9 branches countrywide.
M-Hano Agent enables clients to access banking services with VFR including access to account information, making payments, money transfer, mobile money services, buying electricity and other services, deposit or withdraw through agents.
At the launch of M-Hano Agent at VFR’s headquarters in Muhima, Kigali, selected agents received kits and phones to be used in daily transactions. They will also benefit from commission payments from the fund.
The selected agents had to comply with basic criteria to serve rural communities with low income, including experience and the ability to diligently serve customers.
The CEO of Vision Fund Rwanda, Ross T. Nathan, observed that the platform boosts penetration of cashless economy which is in line with the government’s development agenda.
“It is our contribution to Rwanda’s effort to become a cashless economy. 82% of our clients are in rural areas, and we want to bring in a holistic product which will help agents and the clients and serve the rural population, in response to recent research which indicated limited access to our banking and financial services,” he said. “We will provide them training, not only in financial services but also soft skills for clients to start a business.”
Nathan said that VFR will provide every M-Hano agent with cash between Rwf 500,000 and 1 million.
Commending the work being done by ACL, Aimable Nkuranga, the Executive Director of the Association of Microfinance Institutions in Rwanda (AMIR), lauded ACL for having technically supported VFR to integrate its services with mobile banking technology, and said it show the potential of microfinance institutions in Rwanda.
Nabisubi Renita, the Head of Digital Financial Services at Access to Finance Rwanda – a development partner of VFR- observed that the M-Hano Agent banking will help people to overcome poverty given that money security is guaranteed.
“We appreciate your customer centricity, solving challenges faced by customers. Putting the client at the forefront induces price to keep working with you,” she said.
World Vision Rwanda’s National Director, Sean Kerrigan, said that bringing efficient solutions to reach more people is part of the organization’s global strategy, and urged VFR agents to act professionally.
Jean Marie Vianney Ntihinyurwa, an agent based in Kamonyi district, also applauded the innovation, expressing that they have been working with commercial banks like Bank of Kigali and COGEBANQUE, highlighting that M-Hano is distinctly beneficial to low-income earners especially in rural areas.
Jean Pierre Uwizeye, the Managing Director of ACL revealed that VFR is the second microfinance institution, after Urwego Bank, in Rwanda to make this step. “VFR is now able to reach out to its clients in rural areas and serve mainly low income earners in savings groups.” He concluded
Registration to the platform can be done in any VFR branch. The customer needs to have an MTN or TIGO simcard and a Terimbere account in VFR integrated with M-Hano.
