Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe commended the public for embracing digital banking in a Digital Financial Services Conference held in Mangochi on Thursday aimed at reviewing and consolidating gains in the adoption of digital financial services
Kabambe said that as countries move into the digital space, there is need to adopt digital financial services to save time and reduce risk of money loss.
“It is pleasing that the current statistics show that people have embraced digital banking, indicating that Malawi has seen the number of bank accounts more than doubling within one year from 1.3 million in January 2018 to 2.6 million at the end of 2018,” said Kabambe.
He said the transaction cost of using cash, whether by individuals or business entities, is higher than that associated with digital financial services when time and money spent in accessing a bank branch or automated teller machine (ATM) to either deposit or withdrawal money is factored in.
“As we move into the digital era, central banks have realized that the growth of digital financial services is a paramount component of the monetary and financial system of an economy. We are encouraging people to adopt it,” said Kabambe.
Kabambe observed that cheques have their own challenges, saying commercial banks, corporate institutions and even individuals have lost money to fraudsters.
Consumers Association of Malawi (CAMA) executive director John Kapito urged the central bank to regulate the charges by banks and mobile money players, saying they are preventing people from embracing the digital financial services.