RBM demands openness among financial players
The Reserve Bank of Malawi (RBM) on Friday urged players in the financial industry to ensure that are transparent so that customers are fully aware of the contracts that they are entering with them.
RBM Deputy Governor Grant Kabango was speaking in Blantyre on Friday during the launch of Finca Malawi’s deposit taking licence and its Henderson Street Branch.
Kabango said increased transparency would help boost confidence in the firms as well as reduce disagreements with customers.
“I would like to appeal to all financial industry players, including banks and insurance companies to ensure that they make their products and services as transparent as possible so that the customer is fully aware of all the benefits as well as charges involved,” said Kabango.
He hailed Finca Malawi for satisfying the requirements of a deposit taking microfinance institution.
Kabango appealed to other microfinance institutions to work hard to achieve the status as one way of promoting the savings culture in Malawi.
Finca International president Rupert Scofield said the attaining of the deposit taking licence will help boost the operations of his organisation in Malawi.
Scofield said through taking deposits, his organisation will have additional sources of funds which they could lend to Malawians.
Finca Malawi Managing Director Chris Kizza announced plans by the microfinance institution to open about 10 branches across the country.
He said the increased branch network would lead to about 80 new jobs being created.