During the launch of the credit awareness week organized by the Reserve Bank of Malawi (RBM), it was revealed that only 3% of Malawians access credit the formal financial sector, therefore the remaining 97% uses informal credit.

A panel discussion in which RBM Governor Dalitso Kabambe was part of, saw the panelists urging commercial banks in the country to listen to customers and create accommodative products and services, to penetrate the missing 97%. “Banks need to be customer-centric” said Kabambe “they need to work out and establish the needs of the various segments of the population. Yes, they are serving conglomerates but they should also understand households” said Kabambe.

Heeding to the advice, the President of the Bankers Association of Malawi, Kwanele Ngwenya, agreed that banks must consider the matter. He revealed that the banks now have credit reference bureaus that will check customer’s credit history and that will reduce the rejection rate.

Informal credit involves short-term, among friends, relatives, farmers, artisans, itinerant traders, marketing intermediaries, village moneylenders and other local income groups.