Fincoop Savings and Credit Cooperative says it is set on a path to full recovery after years of being hit by bad debts, among other business-related shocks.
The institution, which provides financial services to low and medium income earning people, has since introduced new innovations such as use of mobile money products which it says will likely compliment government efforts to reach the unbanked.
“Fincoop has stabilised after going through a difficult time, we would not say that we have recovered but we are on a good root to recovery, we have managed to hold on our membership base and also keep the members satisfied with the products and services that we are offering,” said Fincoop acting general manager Mcmillan Nankhonya yesterday.
Nankhonya explained that Fincoop efforts throughout the past two to three years have been on loan loss recoveries to achieve stability.
He also cited Mponela, Mchinji, Machinga and Rumphi as some few selected areas where most of its clients failed to payback their agriculture loans in time which he said affected their business operations.
He said the institution is currently developing green financial products that will reduce their loan portfolios vulnerability to the effects of climate change.
On this one, Nankhonya said Fincoop will be encouraging the use of cooking stoves that use less fuel or what he called green microfinance by their clientele thereby encouraging safeguarding the environment.
“There are some innovations happening in Fincoop like mobile money products that we are hopping will help to reach out to the unbanked people in the rural areas and making the banking process easy for all of us,” he added.
According to Nankhonya, some members who had withdrawn their membership or those who were not active are coming back at Fincoop.
He also disclosed that the institution is set for its annual general meeting on May 10 2014 where, among other things, they will fill vacancies for the board of directors and where Muscco will be handing over the responsibility of overseeing the affairs of Fincoop to the new board of directors.