The Reserve Bank of Malawi (RBM) has given Wealthnet Finance plc a deposit-taking licence to enable the privately owned finance company to operate as a micro-finance bank.
RBM spokesperson Mbane Ngwira and Wealthnet chairperson Nicholson Kumwenda confirmed the development in separate interviews on Wednesday.
Kumwenda said the licence brings many opportunities to their customers.
He said: “The deposit-taking licence is important to us and to customers.
“The licence will enable us to mobilise savings on the market and provide wealth-creating capital to our customers.”
With the deposit-taking licence, Kumwenda said the firm will now be providing long-term finance facilities to their customers.
On the uniqueness of their products and services, he said since its inception, Wealthnet has been offering financial products that meet the needs of majority of Malawians.
He said they have established Wealth Creation Business Groups (WCBGs) to support small and medium enterprises to have easy access to wealth-creating finance.
On his part, Ngwira said with the deposit-taking licence, it means Wealthnet Finance plc has added another service of accumulating savings from customers.
He said this will help the firm to lend money to more people and also increase its customer base.
WCBG is a group of seven to 15 business people who are passionate about multi-generational wealth creation.