Refugees and Their Money: The Business Case for Providing Financial Services to Refugees

This report by BFA for FSD Africa assesses the demand for and business case for providing formal financial services to refugees in Rwanda. It concludes that refugees are a viable customer segment with income levels and profitability potential comparable to typical low-income Rwandan nationals, provided that financial service providers (FSPs) utilize cross-selling strategies and regulatory hurdles regarding identification are addressed.

• Refugees in Rwanda represent a significant untapped market for financial services, with approximately 90% of refugee households reporting median incomes above RWF 25,000, which is the median for a Rwandan bank account holder.
• Extending financial services to refugees would increase the number of bank account holders in Rwanda by approximately 6% and those with loans from banks, MFIs, or SACCOs by 19%.
• The transition from food assistance to cash-based transfers by the World Food Programme (WFP) has increased the demand for formal financial products, as refugees seek safe ways to store income and minimize theft risks in camps.
• BFA's dynamic business case model indicates that refugees who are self-employed, have salaried jobs, or receive remittances are as profitable for FSPs as the typical low-income Rwandan customer.
• While savings accounts alone may not be commercially sustainable, profitability can be significantly enhanced through the cross-selling of micro-insurance and loan products.
• A primary barrier to financial inclusion is the 'Know Your Customer' (KYC) requirement, as only about 50% of refugees possess a government-issued ID card, although all have proof of registration from the Ministry of Disaster Management and Refugee Affairs (MIDIMAR).
• Cash transfers act as a catalyst for other economic activities; median monthly income (excluding transfers and remittances) is 2.5 times higher in camps that receive cash transfers than in those that do not.
• Refugees utilize informal financial tools, such as Village Savings and Loan Associations (VSLAs), with high adoption rates; in Mahama camp, approximately 4,000 refugees (15% of adults) joined savings groups within one year.

APA

FSD Africa (2018). Refugees and Their Money: The Business Case for Providing Financial Services to Refugees. https://fsdafrica.org/wp-content/uploads/2018/04/Refugees-and-Their-Money-Assessing-the-Business-Case-for-Providing-Financial-Services-to-Refugees.pdf

Chicago

FSD Africa. Refugees and Their Money: The Business Case for Providing Financial Services to Refugees. 2018. https://fsdafrica.org/wp-content/uploads/2018/04/Refugees-and-Their-Money-Assessing-the-Business-Case-for-Providing-Financial-Services-to-Refugees.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Refugees and Their Money: The Business Case for Providing Financial Services to Refugees |date=March 2018 |url=https://fsdafrica.org/wp-content/uploads/2018/04/Refugees-and-Their-Money-Assessing-the-Business-Case-for-Providing-Financial-Services-to-Refugees.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2018refugees, author = {{FSD Africa}}, title = {{Refugees and Their Money: The Business Case for Providing Financial Services to Refugees}}, institution = {FSD Africa}, year = {2018}, month = mar, url = {https://fsdafrica.org/wp-content/uploads/2018/04/Refugees-and-Their-Money-Assessing-the-Business-Case-for-Providing-Financial-Services-to-Refugees.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }