5 ways to stand out as a lender in Rwanda

Rwanda’s remarkable transformation from a nation scarred by tragedy to one of Africa’s success stories is evident in its progressive policies and commitment to development. Drawing from our extensive experience and industry knowledge, we’ve found Rwanda to be an ideal environment for digital lending. 

The country’s strong governance and adherence to laws and regulations create a conducive environment for lenders. Rwandans are known for their respect for the rule of law, instilling a sense of responsibility in borrowers to repay loans promptly to avoid legal repercussions. 

This exceptional combination of stability, legal compliance, and borrower responsibility makes Rwanda an attractive destination for digital lenders looking to expand credit access across Africa while achieving financial success. 

Digital finance and lending is flourishing in Rwanda

Rwanda has  made significant strides, with the country now boasting over 45 Deposit Taking Microfinance institutions and 416 Savings and Credit Cooperative Organizations (SACCOs) catering to the financial needs of Rwandans. Among these, Standard Life of Rwanda stands out, powered by Lendsqr to emerge as one of the fastest growing lenders in the country.

With such a strong foundation and reputation, it’s no wonder that digital lending is thriving in Rwanda. However, in such a competitive and vibrant market, standing out can be a daunting task. But fear not – it’s entirely achievable.

So, roll up your sleeves and let’s explore five ways lenders like you can make a mark in Rwanda’s lending scene:

Featured read: How to obtain a lending license in Rwanda

Solid, simple user experience

A user-friendly experience is key to keeping any customer happy and loyal. Think of it as making sure your app or website is easy to use, with clear steps for things like applying for a loan, checking balances, and making payments. This is especially important in Rwanda, where individuals lean more into simplicity. When your web or mobile app is straightforward, customers will likely have fewer issues and feel more confident using your services. Plus, a smooth process means faster applications and fewer mistakes, which everyone appreciates.

Prioritize Android over iOS

Google’s Android led Africa’s mobile operating system market with an 84.9 percent share in November 2023. While Apple’s iOS holds a 13.3 percent share. This proves that while you should target both operating systems, it’s more sensible to prioritize the one with the most reach, AKA Android. To stand out as a lender in the Rwanda market, you must optimize your loan app to work effectively on Android devices, as you’ll be reaching most potential customers through this medium. Additionally, it’s important to ensure your app runs well on lower-end Android devices so Rwandans have a good experience, no matter their phone. 

Go hard on USSD

Looking into alternative lending channels means finding new ways to offer loans outside the usual routes. This could be through USSD channels or some other channels mentioned here. For lenders who may want to incorporate the USSD lending channel to provide credit access to underserved communities, You must note that USSD loans are usually low-value loans because of the porous nature of their verification process. For instance, you’ll be unable to verify a borrower’s identity card regardless of how strong the country’s National ID may be. However, by using these alternative channels, you can reach more people, especially those who might not have access to credit. 

Featured read: Lending with USSD — opportunities, challenges and limitations

Diversify loan portfolio

From our extensive survey of Rwanda’s credit ecosystem, we discovered over 30 types of loans were frequently taken in Rwanda. This means that a lender has room to stand out amongst the sea of other lenders. By diversifying your loan portfolio, you can offer various loan products to meet different customer needs. Having a mix of loan options also spreads out the risk, so you’re not dependent on just one type of loan to succeed. It makes your loan business more stable and able to handle changes in the market. Interestingly, lenders who use Lendsqr’s loan management software have access to the configurable loan form feature that helps them collect varied information tailored to different loan types. 

Adapt to the locals

Adapting to the local culture and needs is essential for any lender wanting to stand out in Rwanda. This means understanding and respecting local customs, languages, and financial habits. For example, offering loan applications and customer support in Kinyarwanda, the local language, can make a big difference. Additionally, being aware of local economic conditions and common financial practices can help you better tailor your loan products to meet your customers’ needs. It’s about being flexible and responsive to what people in Rwanda need rather than trying to impose a one-size-fits-all solution. This approach helps you build trust and loyalty, showing that you’re not just a business but a partner in their financial journey.

The people of Rwanda await…

Rwanda’s sporadic growth shows how resilience can transform a nation. Now, it’s your chance to become a part of the story. As a digital lender, you can tap into this country’s potential by expanding credit access to people and businesses in Rwanda. Let us help you get it right with the technology and resources you need to shine and become a top lender in Rwanda. Send us a message at [email protected], and let’s get you started right now!