In response to uncertainties of life, FDH Bank has introduced Bancassurance—an insurance cover product—that aims at selling the bank’s products and insurance under one roof.
The bank’s managing director, Phillip Madinga, said yesterday in Blantyre that through Bancassurance, the financial institution will be extending to their customers their value offering as they realise their aspirations with peace of mind knowing that their assets are insured.
The rationale behind Bancassurance is on the fact that life can throw uncertainties on their customers’ assets when not expected.
And where such assets are acquired by a loan, the beneficiaries are at risk of losing their hard-earned assets should there be an outstanding loan balance to settle.
“Bancassurance allows our customers to be at ease knowing that assets acquired are covered against theft, damages and other eventualities such as death and disability of the borrower.
“In case of death and disability, our customer will have the comfort that the asset acquired will not be repossessed to cover outstanding loan balances,” said Madinga.
The facility will be available to all customers that access the bank’s range of lending products which include personal loans, mortgages and asset finance loans.
The introduction of Bancassurance will excite small and medium enterprises and personal banking customers since they will be offered the facility to insure assets that are acquired through the bank.
Temson Chinjala, executive director of Economic Empowerment Action Group (Eeag), a grouping of small business operators, said yesterday the bank’s facility has come at a good time, especially when the economy is wobbly.
“SMEs are the critical component of any economy, and Malawi is no exception. This facility will ensure that SMEs have peace of mind,” he said.
The bank’s senior manager for SMEs Mbachazwa Lungu advised their customers to insure their assets in case of eventualities.
“This is the best facility to cover assets as well as insurance. We are encouraging our customers to insure their loans and assets,” he said.
Last year, the bank touted as home-grown, increased its capital base with the injection of $4.8 million in compliance to Basel II—the second of Basel accords—that rolled out on January 1 2014.
Financial market experts argue that the overarching goal of Basel II framework is to promote adequate capitalisation of banking institutions and encourage improvement in risk management thereby strengthening the stability of the banking system.