The Reserve Bank of Malawi (RBM) has urged Finca Malawi Limited to strive to transform into a fully fledged commercial bank to enhance competition in the banking sector.
RBM deputy governor (supervision) Grant Kabango said this on Friday in Blantyre at the launch of Finca Malawi Limited deposit-taking licence and savings products and opening of Henderson Street Branch.
Finca Malawi, established in the country 22 years ago, has become the first micro finance institution (MFI) to be given a deposit-taking licence by the regulator of financial institutions, RBM.
“We would certainly like to see Finca Malawi move in that direction [of becoming a fully fledged commercial bank],” said Kabango.
He said research shows that there are more savings that are not in the formal banking system and urged Finca and other MFIs to come up with innovative ways of reaching the untapped potential.
President of Finca International, Rupert Scofield, said the award of the deposit-taking licence will change the operations of Finca in the years to come.
“Malawi will never be the same again. We are going to bring so much good in the country. Now, we are getting a new challenge, a new trust and we have to succeed,” he said, adding that Finca will stay on in Malawi in the years to come.