Experts have said financial technology (Fintech) has the potential to promote financial inclusion in Malawi through new products as they are easier to use and are more accessible.
In an interview on Wednesday, Information and Communications Technology Association of Malawi (Ictam) president Clarence Gama said fintech can provide affordable financial services to underserved populations.
“This can help bridge the financial inclusion gap and promote economic development,” he said.
Gama highlighted that fintech has the potential to transform the country’s financial landscape if it is supported by the right infrastructure.
“Our role as Ictam is to assist stakeholders in adopting these technologies, which will make access to finance much easier,” he said.
In a written response on Tuesday, Pay-changu chief executive officer Nohaata Seven said fintech is bridging the gap between the banked and unbanked populations.
“Our technology empowers users to receive payments digitally even if they do not have a traditional bank account.
“Through its payment gateway, small businesses can now accept digital payments on websites and mobile apps,” he said.
Seven said their firm is working to simplify payment flows into the country, enabling people abroad to buy from local Malawian shops online.
Fintech growth has spurred investment in cybersecurity and digital financial literacy, with Reserve Bank of Malawi collaborating with other regulators under the Digital Payments Task Force to clamp down on digital fraud.
The Malawi Finscope Consumer Survey 2024 shows that 74 percent of the country’s population has access to formal financial services while 88 percent use both formal and informal services.
Formal financial service access is at 67 percent in rural areas compared to 93 percent in urban areas, according to the survey.
