The Farming Access for Rural Markets Small holders and Enterprise (FARMSE) has successfully implemented digital banking services in rural areas, benefiting over 500,000 people.
Through this initiative, individuals can access banking services, pay bills, transfer funds, and even access insurance services using their mobile phones.
Dixon Ngwende, National Programme Coordinator for FARMSE said digital banking is important in rural areas.
“People can now pay for utilities, transfer funds to their children in school and access insurance services, all from their mobile phones,” he said.
Ngwende emphasised the importance of agency banking, which complements digital banking by allowing individuals to physically receive and deposit cash through agents.
Bernadette Mukonyora, IFAD Country Director, praised the adoption of agent banking by several banks, which has significantly reduced the distance rural clients must travel to access financial services.
“Digital platforms have streamlined transactions, enabling customers to access credit, manage savings and pay for utilities without leaving their communities,” he said.
Mukonyora acknowledged the importance of sustainability and emphasised the need for financial service providers to embed inclusive practices into their core business models.
Banks such as NBS (Bank Pafupi), Standard Bank (Unayo), and FDH (Bank Pakhonde) have introduced banking services that also allow customers to use mobile money platforms like Airtel Money and TNM Mpamba.
To ensure sustainability, FARMSE will launch the Blended Rural Finance Facility (BRFF), which aims to expand access to tailored credit products for rural communities.
This initiative will build on the progress made over the past seven years, further enhancing financial inclusion in rural Malawi.
