Cash In, Cash Out: Financial Transactions and Access to Finance in Malawi

This study by Microfinance Opportunities explores the extent to which Opportunity International Bank of Malawi (OIBM) adds value to client households through an innovative financial service.

The study uses the Financial Diaries methodology to gather financial data on low-income households in Central Malawi. It focuses on households in areas served by OIBM’s mobile bank van which makes weekly stops in locations along a highway. The study examines client profile and usage patterns of the mobile bank, value propositions of OIBM and of formal over informal financial services and impact of the bank in areas such as risk management.

The study identifies achievements and challenges of the mobile bank. Findings include:

• OIBM clients are strong and consistent savers compared to clients of other banks;
• Mobile bank has carved a niche in serving women;
• Usage of mobile bank service dropped over time;
• Use of OIBM services did not prevent decline in incomes;
• OIBM is losing out on business because of lack of penetration into direct deposit market.