Minister of Finance & Economic Affairs, Simplex Chithyola Banda commissioning the service centre
* This FDH Bank Plc service centre is aimed at breaking financial barriers for the people of Likoma
* It was initially shocking to hear of the financial accessibility challenges that the people at Likoma are facing
By Duncan Mlanjira
FDH Bank Plc has taken an extra mile in its provision of financial service which is present in every district in the country, by extending its footprint to Likoma Island — successfully opening the first fully-fledged bank service centre.
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The launch took place at Likoma Island on Monday presided over by Minister of Finance & Economic Affairs, Simplex Chithyola Banda as the guest of honour.
FDH Bank Plc Managing Director, Noel Mkulichi said the decision to open a service centre in Likoma District was mooted from the bank’s new strategy and plans “that aim to provide easy access to financial solutions that enable communities to grow”.
“And one of the main strategic pillars in the new strategy is customer focus,” he said. “It is for this reason that we have made sure that a branch in Likoma is established.
“This FDH Bank Plc service centre is aimed at breaking financial barriers for the people of Likoma. It was initially shocking to hear of the financial accessibility challenges that the people at Likoma are facing.
“Civil servants have to come together and contribute travel and accommodation cost for one person to travel to Nkhata Bay with ATM cards of the entire group to withdraw money — this was a huge risk and inconvenience.”
He added that the inconvenience affected several public offices and private businesses that had to be closed for a day or two for people to travel to Nkhata Bay for banking services — “losing reproductive time”.
“Tourists sometimes cut short their stay on this beautiful Island once they run out of money, lost opportunities for the country.
“These stories and many more are depressing! This is what the people of Likoma have been going through since time immemorial.
“As Malawian and a listening bank, FDH Bank Plc is here now, and it gives us immerse joy to unveil the first-ever bank here in Likoma.
“It has been an exciting and challenging journey to set up this branch mainly due to logistics but our purpose in providing accessible financial solutions was our driving force.”
Inside the banking hall
He emphasized that FDB Bank on Likoma Island was not decided over “because of profit but to ensure that the people of Likoma are financially included and enjoy modern banking services — that will include savings and investment products, lending products and insurance and life cover services,” Mkulichi said.
On his part Minister Chithyola Banda took cognizance that the establishment of the banking institution on Likoma Island by a Malawian-born business magnet “is an icing on the cake” and offered his congratulations to Dr. Thomson Mpinganjira for registering this milestone.
“Thank you for the dream come true,” the Minister said. The Bank will bring numerous benefits to not only people and the country but also the Bank itself.
“For example, there will be local economic development as the bank will support the growth of small businesses by enabling entrepreneurs to establish and expand their enterprises.
“The FDH Bank will allow visitors to access convenient financial services, exchange currencies, thereby help in promoting tourism on this beautiful island.
“The bank will also strengthen the trust and customer base through its local existence and finally the residents will have enhanced convenience to banking services.”
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The bank will also serve the neighbouring Chizumulu Island and Chithyola Banda said in its 15 years of existence, FDH Bank Plc “has shown that it is a true and reliable partner of the Government”.
“It has spearheaded various development initiatives that are aligned with the Government vision of turning Malawi into an inclusively wealthy middle income country.
“The Bank has not only spearheaded cutting edge digital financial services and solutions, but also partners and complements government in various sectors — including social cash transfers and in sports development, among others.”
He thus expressed his profound thanks on behalf of Government and commended FDH Bank shareholders, the Board and management “for being in the forefront in complementing government in various projects and looking for shared value beyond profitability”.
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On her part, FDH Bank Plc Board chairperson, Charity Mseka described the establishment of the service centre as“a very important milestone for the bank, the people of Likoma and the country at large”.
“According to the World Bank Group research, having a bank branch and a transaction account, opens up access to those currently left out of the banking system to broader financial inclusion.
“The international community recognized financial inclusion as a main pillar of the global development agenda. Worldwide, 2.5 billion adults still lack access to basic financial services.
“Closing this gap is vital to ending extreme poverty and boosting shared prosperity,” she said, adding that the World Bank Group has set a target for Universal Financial Access (UFA) that ensure that adults everywhere have access to a transaction account to store money, send and receive payments.
“This is important because access to formal appropriate financial services can help people better manage risks, step out of poverty and build a better life through savings, payments, credit and insurance.
“I therefore make a plea to our people here in Likoma to open bank accounts at this branch and start enjoying the various modern banking services that will be offered here.”
To spice up the launch, Mseka unveiled the a donation of K3 million to Likoma District Hospital towards procurement of linen for women’s ward and K2 million to Likoma Secondary School towards procurement of mattresses for students as FDH Bank’s corporate social responsibility to support the communities they work with — which falls under the bank’s Sustainability Program, FDH Cares.
Also present was Reserve Bank of Malawi (RBM) Deputy Governor, Dr. McDonald Mafuta Mwale, who said they were delighted with the introduction of banking services in Likoma.
“Access to banking is essential for economic growth and prosperity, and the opening of this branch will undoubtedly contribute to the development of Likoma.
“The Reserve Bank of Malawi is committed to creating an enabling environment through policy and regulation to support growth and access to banking in Malawi,” he said.
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