Internet banking subscribers drop

By The Daily Times Last updated Feb 3, 2023

The total number of subscribers for internet banking services dropped by 9.3 percent between December 2021 and December 2022, a National Payment Systems report from the Reserve Bank of Malawi shows. According to the report, the number of subscribers declined to 260,398 during the period under review on account of a decrease in retail customers from 268,781…

According to the report, the number of subscribers declined to 260,398 during the period under review on account of a decrease in retail customers from 268,781 to 241,397 during the review period.

The report adds that, with respect to usage, significant improvements were observed in the performance of both the volume and value of transactions in the period under review as they rose by 23.7 percent and 28.0 percent to 4.1 million and K5.9 trillion, respectively.

“This trend reflects the increased importance of internet banking services for payment of goods and services, especially for corporate customers,” the report reads.

It was noticed in the report that Malawians continued to embrace digital technology in financial transactions.

ICT Association of Malawi (Ictam) President Clarence Gama admitted that the uptake of technological services by consumers in the financial services sector is not as desirable in a century where everything is going digital.

Gama said lack of trust in systems could be attributed to the scenario.

However, he said, local firms have the capacity to build strong systems for the sector.

“The financial services sector should invest heavily in technology so that ICT firms build strong platforms that are able to handle their customer base and build trust in consumers,” Gama said.

In an earlier interview, Economics Association of Malawi Vice President Betchani Tchereni said low literacy levels remain a contributing factor to low penetration.