Over 50% of Malawi's population abandon banks: Survey

According to the survey, five percent (5%) more of the total population of 8.7 million people abandoned the usage of banks for financial transactions, representing a drop from the previous twenty-nine percent (29%) recorded in 2019.

According to the Spokesperson of RBM, Mark Lungu, the drop in figures is a result of the implementation of financial initiatives through various digital platforms that have been introduced by the central bank in collaboration with the Ministry of Finance and Economic Affairs.

Agency Banking Directives are also being issued to allow banks to have agents perform banking activities on behalf of major banks and the central bank is implementing targeted financial literacy programmes on banking and services.

“We have also established the Consumer Protection and Financial Literacy Unit to coordinate the implementation of various financial literacy initiatives, including conducting awareness campaigns aimed at sensitising the general public to the importance of having a bank account.

“Recently the bank has embarked on raising awareness on adoption of digital financial services with a focus on the rural population which is marginalised,” he was quoted by local news outlet The Nation.

The Consumers Association of Malawi executive director John Kapito maintains that digital financial services are more accessible and convenient even in remote areas than with major banks which people have to locate.

“The urge to save with banks is there, but looking at the costs of saving and borrowing from banks, people shun borrowing from banks and opt for the traditional methods,” he is quoted by The Nation.

Malawi has committed to increasing access to financial services from forty-six point one percent (46.1%) to 75% of the adult population by 2027 to boost economic growth and wealth creation while reducing poverty.