By Mc Donald Chapalapata, a Contributor,

TNM Chief Executive Officer Michiel Buitelaar has challenged banks that they may have to do away with brick and mortar to serve their customers in future because of digital transformation.

Presenting a paper on ‘Digital Transformation in consumer industries’ at the 5^th Bankers Conference 2020 on Thursday in Blantyre, Buitelaar gave an example of a bank called Knab in his home country Netherlands which has no branches and buildings but offers superb services to its customers through digital means.

“Software is eating the world in all sorts. I used to work for an old-style financial institution in my home country. It created a new bank called Knab, it has no branches or buildings but it gives excellent service to its customers. With the digital transformation, this can also happen here in Malawi, I am not saying it will happen now but there will be a time that this will happen,” said Buitelaar.

He also gave another example of an all-digital insurance company called Lemonade that is making great strides in the United States of America.

Buitelaar also said service companies will be able to offer personalized offers to customers through digital means and appealed to Malawian service providers to embrace this.

Buitelaar said some cynics may say that Malawi cannot achieve digital transformation because of low broadband penetration, low Internet penetration, low electricity penetration, low income and low digital literacy.

“But Malawians are not so different, they are embracing the internet. There are opportunities for Malawi in that there is limited legacy and these are early days with a young population that possess vast skills which may have big impact on sectors of the economy,” said Buitelaar.

Opening the conference, Guest of Honour who is also Reserve Bank of Malawi (RBM) Governor Dr Wilson Banda bemoaned the effects of Covid-19 pandemic and thanked banks for standing with RBM to provide relief to customers and businesses during the difficult time.

“The banking sector is pivotal in driving economic recovery and securing future stability by providing finance. However, is our service delivery amidst these conditions supportive to this role, more especially to the segment driving the economy-The SMEs? What about the common man at the bottom. Can we do it any differently?”

“These and many more questions ought not be avoided, but addressed to inform the future of the banking and the economy of Malawi. Covid-19 has redefined the environment, leaving limited room for conventional business models.  Therefore, the path we take, shall inform the growth trajectory and adaptability of our economy to future shocks which are certain to come; and that future is now,” said Banda.

United Kingdom (UK) has committed an extra £10.8m (about K11 billion) to support Malawi in
tackling serious and organised corruption.

Since 2016, the UK has been supporting Malawi through the Tackling Serious and Organised
Corruption (TSOC) Programme to strengthen the anti-corruption environment and increase
penalties for serious and organised corruption.
The extra funding will see this programme being extended up to 2024, supporting law
enforcement efforts in asset recovery and addressing high-level crime.
Duddridge said: “To alleviate poverty, we must tackle corruption. The UK is committed to
helping Malawi do so, building robust institutions to tackle serious and organised crime.

funding the UK can support this administration’s vision of fighting corruption by addressing
technical and political barriers to reducing corruption in Malawi, and building stronger public
financial management systems that help prevent corruption occurring in the first place.”
The TSOC programme will reduce the opportunity for corrupt activity by strengthening the
systems regulating how money and services move through the economy; and increase the
risks of engaging in corruption, by publicly exposing corrupt individuals and corporations,
seizing assets, and improving strategic casework and conviction rates.
The UK has been supporting the Malawian authorities to investigate high-level corruption
since the Cashgate scandal of 2013. Some of the notable achievements include:
The conviction of 17 individuals (14 having been sentenced to a total of 79 years in prison)
and MK782 million retrieved in assets linked to a major corruption scandal called Cashgate
with the help of UK technical assistance and forensic audit support. A further MK16.5 billion
has been identified in ‘sums at risk’ for forfeiture pending scrutiny by the courts.
Malawi’s legal system has been strengthened through the introduction of plea bargaining
and digital data analysis – with UK support – for the first time in select cases.
Enhanced digital forensic capability of the Anti-Corruption Bureau through a new digital data
forensic suite.
Improved international law enforcement cooperation with mutual legal assistance provided
by the UK’s National Crime Agency (NCA) and South Africa’s Public Asset Forfeiture Unit.
Strengthened civil society advocacy working in a flexible and adaptive way to explore the
deterrent effectiveness of innovative approaches to tackling corruption
In 2019, Transparency International rated Malawi 123/180 on its Corruption Perception Index.
72% of Malawians think corruption got worse in the last year according to the 2017
Afrobarometer data and only 64% of Malawians think ordinary people can make a difference
in the fight against corruption– down from 84% when last asked in 2013.
Global Financial Integrity estimate that £400m (USD585m) leaves Malawi illegally every year
– twice the country’s annual health budget.