The Reserve Bank of Malawi (RBM) has hailed one of the country’s microfinance institutions, VisionFund, for its efforts in promoting financial inclusion.
RBM Executive Director for Regulation Patrick Mhango was speaking in Lilongwe when VisionFund launched the Tisunge Savings Account and Fixed Deposit Account as well as its Lilongwe branch.
According to Mhango, it was encouraging to note that VisionFund does not entirely focus on the bottom line.
“Its vision of serving the poor and low-end customer is very paramount and conspicuous in your operations. Indeed, mission to offer financial services that enable impoverished households to increase their incomes walks tall in your operations. Your rural focused business is a plus to the development of this country.
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“It is, therefore, not surprising that; VisionFund Malawi has come up with a number of innovative products for all Malawians to enjoy. These products signify an important step towards securing a brighter economic future for Malawians through the cultivation of a savings culture,” Mhango said
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He observed that the launch of the savings products represents a milestone for VisionFund Malawi, and reflects the institution’s commitment to empowering local and rural communities through accessible and tailored financial solutions.
VisionFund Chief Executive Officer Theodora Ng’oma Ntaba said saving is the only surest way that guarantees a brighter future for everyone.
According to Ntaba, statistics indicate that only 52.71 percent of Malawians save with various institutions.
This, she said, shows that the penetration rate is still very low amongst many people, hence the reason VisionFund came up with savings products to address and reduce that gap.
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“As we launch our savings products, we are embarking on a journey that goes beyond just lending of credit facilities to our clients but that they can also save from the businesses that we finance through the loans that we offer. We believe that financial security should be a universal right not a privilege for a select few.
“This is the main reason why we want to provide access to savings products to all existing and potential clients. We understand the challenges faced by many individuals and families who, despite their great aspirations and efforts, often find themselves vulnerable to economic setbacks. It is a realisation of our vision to make savings products affordable and accessible to all, irrespective of their social economic backgrounds,” Ntaba said.
VisionFund Malawi was granted a non-deposit taking licence on June 14 2013 and later a deposit taking licence on July 22 2019.
