Enhanced security
FDH BANK
locally . They may help their families with certain payments whether it ’ s rental payments , school fees , etc . They have to be sure that money will be used for that specific request . “ By creating a wallet outlet , customers can control that flow of funds locally here . Instead of having to use a money transfer , similar to a western union , they ’ d go and cash $ 200- $ 400 at a certain location , and trust that person will use that money for the right matter .”
By March 2017 , FDH had gained up to 50,000 subscribers , which has now soared above 82,000 . Nonetheless , whilst Malawi remains a cash-based economy , continuous education surrounding the benefits of utilising digital banking will remain vital .
With this in mind , FDH ’ s use of agent banking delivers essential information to encourage customers to adopt mobile banking , and has extended FDH ’ s reach to rural localities , removing the time it would take for communities to travel and visit a financial branch .
“ There is a huge part of the country where it might not be profitable to put up a physical outlet due to poor infrastructure , but businesses continue to operate there . With agents in banking , you can establish businesses through training , vetting , and qualifying these people as agents who can provide banking services . It allows us to reach out ,” comments Mpinganjira .
“ Sometimes customers will not be comfortable with a bank , but they trust local businesses who have been there for many years and have established trust . This was a key reason for us to move into agency banking .”
Additionally , FDH ’ s Goal Save accounts continue to encourage local citizens to save , with highinterest rates attached to every penny saved . Mpinganjira stresses that such active accounts can support any potential loan application , as access to credit remains a challenge for local businesses and SME ’ s in the country . “ Part of that savings account is collateral ,” he says .
Enhanced security
Additionally , in alignment with its customer-focused digital
268 June 2018