National Bank of Malawi (NBM) plc Chief Executive Officer (CEO), Harold Jiya has unveiled plans to establish a Financial Technology (Fintech) company to help minimize costs incurred when buying systems from different companies.
Jiya, who ascended to the top managerial position this month following the retirement of McFussy Kawawa, outlined the plans during a media interaction session on Wednesday as he also unpacked the Bank’s five-year strategy.
In his presentation, Jiya said apart from the Fintech company, the Bank anticipates a significant growth to four countries in Africa, growing the profit-after-tax to $100 million dollars from the current $60 million, and grow the customer base to two million by the year 2027.
On cutting the costs through the Fintech Company, Jiya said it was imperative as the Bank has over 28 systems supplied by different vendors whose licenses and annual maintenance fees are paid in United States dollars.
“Why can’t we have a specialized outfit, an IT Company that can specialize in these products? It can start by supporting and learning from National Bank and also supporting the Banks that we are going to buy in the region.”
“Now, by supporting the banks in the region, it will be charging in dollars and we believe it will be a profit centre supporting National Bank plc. We believe once we have the critical mass, it will give us appropriate savings which will help in terms of our profitability,” said Jiya
He also highlighted how he plans to move the Bank to the next level.
“We have a strategic plan which I was part of developing. We are very clear about the path that we want to take. So, as I take on the leadership of the Bank, I am confident I will deliver on that strategic plan. Our plan is for this bank to deliver a 100 million US Dollars profit-after tax by 2027 and to be the number one digital bank in the country and to go in the region and expand our reach by making sure we are represented in four countries and have over two million customers,” said Jiya.
Jiya also said they anticipate that 12 percent of the $100 million profit-after-tax projected for 2027 will be contributed by NBM plc’s subsidiaries, which include Akiba Commercial Bank in Tanzania, NBM Pensions Administration Limited, NBM Development Bank, NBM Capital Markets Limited, United General Insurance (UGI), and Stockbrokers Malawi Limited.
On financial inclusion, the new CEO highlighted plans to empower Agent Banking to provide seamless bank services in rural areas where the Bank does not have structures.
“We have people operating their business in rural areas, we intend to empower such people to be providing our services. People in rural areas should be able to deposit and withdraw money through these agents. Our Mo626 USSD service also provides a chance for every Malawian to access financial services through their phones,” he said.
He further gave an update on the status of Akiba Commercial Bank in Tanzania, saying there has been a great improvement on the losses made, and the future looks promising.
“This year, Akiba Bank made a loss of less than K1 billion from K4 billion when we acquired it some three years ago. Which means we will now be talking of profits and not losses anymore,” he explained.
