Likoma wears new face as first bank opens on the island

First Discount House (FDH) Bank on Monday officially opened a banking facility in Likoma, becoming the first bank to open a branch in the island district.

Speaking during the official opening of the bank, Minister of Finance Simplex Chithyola Banda commended FDH bank for the facility, saying it will help to improve socio-economic wellbeing of people in the district.

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“I would like to appeal to people in the district to take advantage of the bank to improve their socio-economic wellbeing through safe keeping of their savings, borrowing to expand their businesses and accessing insurance services in case of eventualities, among others,” said Banda.

He said the bank has shown that it is a true and reliable government partner as it has spearheaded various development initiatives that are aligned with the government vision of turning Malawi into an inclusively wealthy middle income country.

Deputy Governor for Reserve Bank of Malawi (RBM) responsible for economics and regulation, McDonald Mwale said Likoma has for a long time been denied easy access to financial services due to reluctance of banks to open branches on the Island district.  

“As RBM, which is the regulator of the banking industry in Malawi, we have always preached about financial inclusion whereby we encourage financial and banking services to be taken to the people.

“Thanks to FDH. Honestly, this is not a business decision but a decision to serve people.  We have been hearing of people putting ATM cards together and sending someone to go and get money for them on the mainland which was very risky,” said Mwale.  

Member of Parliament (MP) for Likoma Ashems Songwe said the absence of banks in Likoma District had been forcing people to keep millions of kwachas under their pillows while civil servants could be away for days to access their salaries on the mainland.