The advent of mobile money in third world and developing countries has contributed massively to financial inclusion for both the underserved and unserved.
First launch in Kenya around 2007, mobile money has with in two decades spread across Africa.
In Malawi, the largest mobile money operator – Airtel Money launched in 2012 and has since grown in to a key financial inclusion enabler for the country. Its flagship financial services include local person to person transactions, bill payments, and international remittances.
“At Airtel Money, we believe that FinTech is the future and we want to go beyond the simple cash ins and cash-outs. We have added several products to drive financial inclusion. These include collateral free digital loans, Phuka digital savings in partnership with Old Mutual, Limodzi Insurance in partnership with Britam. We have also integrated our system with all the eight banks in Malawi to enhance liquidity for our agents and customers. We have improved the lives of hundreds of agents especially women; who are able to make good commission from Airtel Money and support their needs,” Virginia Jere, the Head of Marketing at Airtel Money, Malawi said.
She further explained: “The Airtel Money revolution is not based on mere stories but backed up by data. FinScope Malawi, 2023 reported that financial exclusion dropped drastically from 51 per cent in 2014 to 12 per cent. This was largely contributed by the penetration of mobile money operators which increased from 3 per cent in 2014 to 69 per cent in 2023. The National ICT survey for 2023 revealed that Airtel Money is the largest mobile money operator in Malawi contributing up to 84.9 per cent of the Mobile Money network. This means that out of 100 mobile money users in Malawi, 85 customers are using Airtel Money. This is a very significant revolution.”
Jere highlighted that this impressive performance is not without challenges; noting that high illiteracy rates, fraud and high cost of devices remain key barriers to financial inclusion.
She commended the 40 Days 40 FinTechs initiative for looking out for and telling life changing stories.
“The 40 Days 40 FinTechs initiative is timely for us at Airtel Money. It will amplify our visibility and also foster collaborations with partners especially now that we are driving the FinTech platform. We remain committed to shaping the future of finance by building the most instant, secure and borderless mobile money ecosystem for every Malawian,” Jere concluded.
Airtel Money, Malawi has featured on Day 9 of the 40 Days 40 FinTechs initiative; Zambia and Malawi edition. The roll-out of the 40 Days 40 FinTechs initiative in Zambia and Malawi followed its success in East Africa. Over the past 5 years, the 40 Days 40 FinTechs initiative has featured over 200 FinTech stories from Uganda, Tanzania, Kenya, and Rwanda. This initiative has also engaged hundreds of end-users and shared their stories with millions worldwide.
The primary objective of this initiative is to support and showcase innovative FinTech giants and start-ups from across Africa, with a focus on promoting financial inclusion and economic growth, in addition to giving start-ups access to the resources they need to develop new and innovative financial solutions that can benefit underserved populations. Such resources include but are not limited to Level One Project guidelines, Mojaloop Open Source Software and Inclusive Finance systems, etc.