By Dr. Diane Karusisi, CEO, Bank of Kigali and Dr. Reda Helal, Group Managing Director – Processing, Africa and Co-Head Group Processing, Network International (https://www.Network.ae).

One of the visible signs of a growing digital economy is its flourishing initiatives for financial inclusion and financial literacy. Rwanda recognizes financial inclusion as a crucial component for realizing its development and economic prosperity and is a remarkable example of a country that is introducing such programs to aid in setting up a vast digital economy, which are increasingly gaining international recognition. The country has set an ambitious target to achieve 90% formal financial inclusion by 2024.

Building inclusivity by involving microfinance institutions, savings and credit cooperatives, and mobile network operators, as well as enabling interoperability in digital payments, play a critical role in ensuring accessibility for populations that have historically been unbanked and rely on cash-based transactions.

Digital transformation

Traditionally, Banks and FIs feel enormous pressure to grow their digital payments penetration in a landscape that is radically different from even five years ago. This pressure is accentuated when Fintechs and wallet operators are added to the mix. Everything from regulatory requirements, a competitive landscape and consumer expectations to product innovations has upended the “business as usual” outlook for digital payment providers. The industry is fraught with challenges that payments leaders must carefully navigate.

Financial institutions are increasingly recognizing the importance of digital transformation and access to data. A legislation on the protection of personal data and privacy that was passed in October 2021 serves as a foundation for enabling trusted and secure domestic and international data flows and maximising the economic and social benefits of data-driven technologies, such as artificial intelligence (AI), for businesses and individuals in Rwanda.

The Bank of Kigali is an interesting example of a financial institution that has transitioned from traditional banking processes and payments to a structured digital platform. Embarking on a digital journey four years ago, the bank introduced several measures including internet banking and a mobile app, ISO standardization, and cyber resilient systems tuned to ensure the safety of customers’ data while enabling digital transactions through mobile phone.

Internet penetration in Rwanda stood at 30.5 per cent of the total population in January 2023, with 4.25 million internet users.[1] Incidentally, the ownership of smartphones in Rwanda stands at 26.7 per cent among men and 21 per cent in women respectively, according to the 2022 Rwanda Population and Housing Census, with the number of mobile phone users standing at 11.7 million in June 2023. Mobile phone penetration of 87 per cent has consecutively increased the interest in digital payment solutions.

With the surge in mobile usage and e-commerce within the country, it is natural for banks to respond to the momentum and strengthen their digital payment services. The Bank of Kigali, for example, sought the advisory services of Network International (Network) to understand how to enhance and structure their product offering to cater to evolving customer behavior.

Network has been at the helm of accelerating digital transformation and has extensive experience in revolutionizing digital finance in the region with a deep understanding of digital payment offerings and technology usage. Network, using generational artificial intelligence and machine learning technologies, as well as market knowledge and data utilization, helps the Bank generate informed business decisions to refine their services proposition in accordance with consumer spending trends.

Threat landscape

In a rapidly evolving digital payments landscape, the threat of fraud looms large. According to TransUnion Africa, digital transactions in financial services surged by 12.2 per cent during the first half of 2023, and the alleged rate of suspected digital fraud attempts for transactions from Rwanda in financial services increased 252 per cent year-over-year (YoY) – the highest rise among industries analyzed. The Rwanda Investigation Bureau reported 254 cases of cybercrime involving up to RWF 416 million in 2021. While fintechs and other new stakeholders in the environment pave the way to superior banking services, they also ensure to bolster their systems with strategic analysis and secure data management systems to counter sophisticated fraudulent activity. In this regard, Network supported Bank of Kigali with an authorization strategy with detailed analysis focusing on authorization diagnostic, data and fraudulent transactions. Based on the findings of this analysis, Network provided recommendations to aid the Bank in improving operational efficiency, reducing risks, and accelerating growth.

Advanced tools and technology leave no room for error or vulnerabilities, in an environment that is seeing a growing dependence on mobile wallets, digital-only banking platforms, and contactless payments, which fosters adoption of digital payment solutions between merchants and consumers. This security allows for convenient access to digital payment services which include remittances, timely purchases, e-commerce and small businesses promotions, insurance payouts and more.

By enabling innovation and operational efficiency for financial institutions, Network International contributes to government-led financial inclusion initiatives and supports the sustainability of commerce among the masses.

Distributed by APO Group on behalf of Network International.

The African Development Bank (www.AfDB.org) has published a report clarifying the legal framework, processes and governance for a call on the callable capital by the institution.

Callable capital refers to the portion of the Bank’s capital that is subscribed by shareholders but not immediately paid. It represents a commitment to make additional capital available to the institution in the very unlikely event that it cannot meet its obligations on its debts or guarantees.

The report presents the circumstances leading to a call on callable capital, and the processes for such a call being made by the Bank and met by shareholders. This important exercise follows a recommendation made by the G20 following an independent expert review of MDB capital adequacy frameworks and aims to provide credit rating agencies with key information that they could find useful in their assessment of the value of callable capital.

Similar reports are also published by the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the World Bank.

The results of a reverse stress testing exercise conducted on the African Development Bank assessing the probability of a scenario materializing where the Bank would need to call on its callable capital is presented in the report, which also clarifies the mechanisms to be followed by the Bank when making a call on callable capital, and shareholders’ response to such a call.

The analysis demonstrates that the probability of such an event is extremely remote. This is attributed to the Bank’s robust financial risk and capital management anchored on its risk appetite statement and long-term financial sustainability framework. It also reflects the Bank’s preferred creditor treatment and its extraordinary shareholder support.

While the processes and timeframes for responding to a call on callable capital vary among shareholders, the clarifications provided show that they should be able to respond to such a call in a timely manner.

For more information on the report click here (https://apo-opa.co/4aX4vDd).

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Contact:
Amba Mpoke-Bigg
Communication and External Relations Department
email: media@afdb.org

About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

Radisson Hotel Group (www.RadissonHotels.com) brings the renowned Radisson brand to South Africa’s “Mother City” with the rebranding of Park Inn Cape Town Foreshore to Radisson Hotel Cape Town Foreshore. Strategically located just minutes away from the International Convention Centre (CTICC) and the famous Victoria&Alfred Waterfront, Radisson Hotel Cape Town Foreshore marks the Group’s third Radisson property in South Africa.

Positioned at the heart of Cape Town’s city center, Radisson Hotel Cape Town Foreshore is the perfect destination for travelers visiting South Africa’s oldest city for both business and leisure. The hotel’s prime location places it just a stone’s throw away from world-renowned tourist attractions and the bustling business district. Following an eight-month renovation, Radisson Hotel Cape Town Foreshore’s120 rooms now boast a fresh and modern decor that creates a relaxing environment for guests, as well as magnificent views of the prominent, Table Mountain and the city center.

Tim Cordon, Chief Operating Officer, Middle East, Africa and South East Asia Pacific at Radisson Hotel Group says, “We are thrilled to debut our rapidly expanding Radisson brand in Cape Town, which marks our third Radisson property in South Africa. With its strategic location nestled among the finest leisure attractions and business addresses and boasting one of the best rooftops in the city, it was a natural choice to refurbish and elevate the hotel to our Radisson brand standards. Radisson is renowned for striking the perfect balance between work and play, and we’re confident that our guests will experience nothing but the best during their stay at Radisson Hotel Cape Town Foreshore.”

Upon arrival, guests are welcomed to the newly re-energized reception lobby and foyer. Radisson Hotel Cape Town Foreshore is home to South Africa’s first Filini restaurant, following the restaurant’s success at Radisson RED London Heathrow airport. Filini offers a delectable dining experience of fresh, simple, and delicious Italian-style cuisine, from starters to decadent desserts. The restaurant’s open-plan kitchen creates a dynamic and interactive dining setting, while the hotel’s vibrant Harald’s Rooftop Bar&Terrace is the perfect spot to unwind and enjoy uninterrupted views of Table Mountain and the cityscape. The bar and terrace also feature a perfectly positioned plunge pool to complete the hotel’s rooftop experience.

“At Radisson Hotel Cape Town Foreshore, we are dedicated to offering our guests the perfect balance during their stay. Our new offering and amenities will bring added value to the Foreshore area, catering to both business and leisure guests, where from nearby or from abroad. We’re excited to welcome back our guests and provide them with an even better experience, thanks to our updated features and added comfort, designed to ensure our guests have a great night’s sleep and overall stay,” added Angus Spurr, General Manager.

Radisson Hotel Cape Town Foreshore offers a diverse range of business and meeting amenities to its guests, including versatile meeting and event venues, secure indoor parking, and complimentary access to a state-of-the-art gym. The 125-square-metre meeting space is elegantly designed and can accommodate up to 120 guests theater-style or 140 guests in a cocktail setting, and provide a perfect blend of functionality and sophistication, making them the ideal choice for hosting events and meetings.

Click for here (https://apo-opa.co/4aVeHwk) for more information and to book. 

Distributed by APO Group on behalf of Radisson Hotel Group.

MEDIA CONTACT:
Saadiyah Hendricks,
Area PR&Social Media Director, Middle East, Africa and the Mediterranean
Radisson Hotel Group
Saadiyah.hendricks@radissonhotels.com

Connect with Radisson Hotels on:
LinkedIn: https://apo-opa.co/4cYkxi1
Instagram: https://apo-opa.co/3UfBI7C
Twitter: https://apo-opa.co/4cYkyT7
Facebook: https://apo-opa.co/49EHoMX
YouTube: https://apo-opa.co/3Uf38dE

Connect with Radisson on: 
LinkedIn: https://apo-opa.co/49wpQm0
Instagram: https://apo-opa.co/3PZcBTW
Twitter: https://apo-opa.co/3xJgeac
Facebook: https://apo-opa.co/3UfBRYI
YouTube: https://apo-opa.co/49Fc7t0

RADISSON HOTEL GROUP:
Radisson Hotel Group is an international hotel group, operating in EMEA and APAC with over 1,320 hotels in operation and under development in +95 countries. The international hotel group is rapidly expanding with a plan to significantly grow the portfolio. The Group’s overarching brand promise is Every Moment Matters with a signature Yes I Can! service ethos. 

The Radisson family of brands portfolio includes Radisson Collection, art’otel, Radisson Blu, Radisson, Radisson RED, Radisson Individuals, Park Plaza, Park Inn by Radisson, Country Inn&Suites by Radisson, and prizeotel brought together under one commercial umbrella brand Radisson Hotels.  

Radisson Rewards (https://apo-opa.co/48eby8X) is Radisson Hotel Group’s loyalty program, which delivers an elevated experience that makes Every Moment Matter. As the most streamlined program in the sector, members enjoy exceptional advantages and can access their benefits from day one across a wide range of hotels in Europe, Middle East, Africa, and Asia Pacific.   

Radisson Meetings (https://apo-opa.co/49xBHAD) provides tailored solutions for any event or meeting, including hybrid solutions placing guests and their needs at the heart of its offer. Radisson Meetings is built around three strong service commitments: Personal, Professional and Memorable, while delivering on the brilliant basics and being uniquely 100% Carbon Neutral.  

At Radisson Hotel Group we care for people, communities and planet (https://apo-opa.co/3SC295s) and aim to be Net Zero by 2050 based on the approved near-term Science Based Targets. With unique solutions such as 100% carbon neutral Radisson Meetings, we make sustainable hotel stays easy. To facilitate sustainable travel choices, all our hotels are becoming verified on Hotel Sustainability Basics. 

The health and safety of guests and team members remain a top priority for Radisson Hotel Group. All properties across the Group’s portfolio are subject to health and safety requirements, ensuring we always care for our guests and team members. 

For more information, visit our corporate website (https://apo-opa.co/42k6te0).  

ABOUT RADISSON:
Radisson is an upscale hotel brand that offers Scandinavian inspired hospitality, which enables guests to find more harmony in their travel experience. With natural surroundings and unexpected delights, Radisson inspires the art of being in the moment. We are committed to helping our guests find the right balance for their stay, removing the discomforts travelling may bring and enabling them to switch off and relax, using our Yes I Can! attitude to ensure satisfaction of every guest. Radisson hotels can be found in suburban and city settings, near airports and leisure destinations. Guests and professional business partners can enhance their experience with Radisson by participating in Radisson Rewards, an international loyalty program offering exceptional benefits and rewards. 

Radisson is part of the Radisson family of brands, which also includes Radisson Collection, art’otel, Radisson Blu, Radisson RED, Radisson Individuals, Park Plaza, Park Inn by Radisson, Country Inn&Suites by Radisson, and prizeotel brought together under one commercial umbrella brand Radisson Hotels. 

For reservations and more information, visit our website (https://apo-opa.co/3SkREDo).