New Finance Bank (NFB) has boosted its capital base following an agreement with MyBucks to inject an initial K2.5 billion ($3.5 million) into the bank.
MyBucks now owns a 50 percent stake in NFB.
The development was announced on Monday in Lilongwe during a press briefing held at the bank’s head offices.
MyBucks is a Fintech company that embraces technology as a means to provide financial products and services to the low and middle-income customer segments, predominantly in high-growth emerging markets.
According to the bank’s board chairperson, Francis Pelekamoyo, the deal was completed on July 18 this year.
Pelekamoyo said following the agreement, the bank’s financial position will be strengthened, enabling it to serve Malawians better.
Pelekamoyo further pointed out that following the move, the bank will intensify efforts to close the gap between the banked and unbanked masses in Malawi.
One of the Directors of the bank, who also represented the other shareholders, Rajan Mahtani, said the expertise in digital banking that MyBucks possesses will go a long way in boosting NFB’s business in the country.
“This partnership will enable us to get as many Malawians who are not banked into the banking system. We are targeting the common man in the rural areas of Malawi where you rarely find banking services so people will be able to deposit and withdraw money using the phone, receive and service loans using their mobile phones as well,” Mahtani said.
MyBucks Group Deputy Chief Executive Officer, Tim Nuy, said their coming on the market will redefine the banking scope as they plan to introduce state-of-the-art digital banking solutions in the country.
He pointed out that the system they intend to implement in Malawi has already worked in other countries in the region through the use of agents in rural areas.