Technology Key to Unlocking Financial Inclusion and Economic Growth in Malawi, Says TransUnion

Leveraging technology and alternative data could be the game-changer in Malawi’s push for deeper financial inclusion and long-term economic mobility, according to TransUnion Malawi Country Manager, Dumisani Kadango.

Speaking through a statement distributed by the African Media Agency, Mr Kadango highlighted the progress made in recent years. The 2023 FinScope Consumer Survey shows that 88% of Malawian adults are now financially included, compared to 51% in 2014. Formal financial inclusion – access to regulated financial services – has climbed from 34% to 74% over the same period, largely driven by the rapid uptake of mobile money and non-bank digital platforms.

However, traditional bank account ownership has fallen from 27% in 2014 to just 13% in 2023, raising concerns over savings capacity, credit access, and financial resilience. 

One of the major barriers to formal financial inclusion has been the lack of conventional credit records. Mr Kadango noted that alternative data – such as mobile money transactions, airtime purchases, and utility payments – can help lenders assess creditworthiness for informal workers and rural entrepreneurs, who are often excluded from the formal financial system.

“Through responsible use of alternative data, scoring solutions, and consumer insights, we are working with partners across the financial ecosystem to unlock access without compromising stability,” he said. 

Mobile technology is playing a pivotal role in bridging the access gap. From microloans disbursed via mobile apps in Lilongwe, to weather-indexed crop insurance accessed via SMS in Dedza, and digital savings platforms for students in Zomba, digital financial tools are enabling economic participation for previously underserved groups. 

Mr Kadango stressed that mistrust and low digital literacy remain challenges. He called for greater investment in financial education and consumer protection through interactive tools, in-app learning, and transparent credit reporting. 

Achieving meaningful financial inclusion, he added, requires cooperation between regulators, financial institutions, FinTech companies, mobile operators, and civil society groups to ensure that access is inclusive, transparent, and tailored to diverse needs.

“Technology offers Malawi the chance to leapfrog traditional barriers,” Mr Kadango concluded. “With intentional design, trust-building, and collaboration, we can create not just access, but true economic mobility and inclusive growth.”