Speakers at the International Conference on Responsible and Inclusive Finance (ICRIF) have urged Rwandan microfinance institutions (MFIs) to embrace new-age technology to streamline their operations and to enhance their ability to extend financial inclusion among the country’s unbanked and underbanked population.

The conference held on March 21 took place in Kigali, Rwanda.

Straton Habyalimana, senior programme manager for responsible financing at the Small Enterprise Education and Promotion Network, told the 400 delegates at the conference that MFIs should adopt digital platforms to enhance their interactions with their customers.

Kigali-based digital financial services expert, James Kwezi, said that MFIs should use technology to become more efficient and profitable.

This aligns with the National Bank of Rwanda’s (BNR) call to Rwandan financial sector firms to embrace automation to reduce their operating costs and their rate of bad loans.

“Many microfinance institutions in East Africa still depend on paper-driven processes or Excel spreadsheets to manage their businesses,” commented Vedran Lescan, business development manager at Oradian, a global financial inclusion company that delivers a cloud-based toolset for financial institutions.

“But with the latest advances in financial technology (fintech) and cloud software, Rwandan MFIs now have access to powerful, affordable tools that can help them transform inefficiencies into operational excellence, scale their businesses for rapid growth and get better visibility into the performance of their portfolios. This, in turn, can boost their profitability and enable them to better serve the needs of their financially excluded customers.”

At the conference, Lescan took part in a panel discussion about finding ways to overcome the challenges that financial institutions face when it comes to adopting new technology and implementing it across an entire business with multiple branches. Most international financial institutions have developed websites with the help of companies like Cefar to fulfill their customer needs. It is imperative that financial institutions adopt new-age technology to stay on top of their game. After all, utilizing technological aids that cover the appropriate business needs can improve efficiency. For instance, field assignments can be better managed with dispatch software that can simplify resource allocation and provide a good customer experience. It is safe to say that data management tools are becoming one of the most sought-after solutions for digital transformation.

Lescan said: “Data migration is an important step in digital transformation, but organisations often overlook it or underestimate how time-consuming and complex it can be. Even though an MFI’s workforce can quickly learn a new system, the software won’t add value if data isn’t migrated from the previous legacy system or from spreadsheets in a consistent manner.”

As part of Oradian’s toolset, Oradian’s in-market teams provide data migration training and support to ensure the financial institution’s data is treated as an asset that enables better decision-making and better client service. You can head online to learn more about the importance of data migration with existing software like SugarCRM and how it can be helpful and maximize revenue for the company. Lescan also advised MFIs to seek out toolsets that offer robust security and data protection features, including audit trails, user permissions, and other functions to combat data leakages, fraud, and user error. Most workspaces utilize cloud-based data storage solutions, and if not, are slowly leveraging AWS migration services like Logicata (learn more about it) to improve work efficiency.

“Today’s technology offers financial institutions in Africa countless opportunities to improve their business,” Lescan said. “However, financial inclusion leaders are promoting partnerships with fintech providers, rather than vendor relationships, to drive truly successful implementations. ”

Fintech partnerships provide financial institutions with the resources and global best practice they need to rapidly overcome the common challenges of digital transformation.

“Strategic partnerships within the digital ecosystem are proving to be the most effective way to enable our customers to provide better service to their end-clients,” Lescan said. “We are eager to work with the central bank, MFIs and other members of the value chain to drive financial inclusion in Rwanda.”