Achieving Better Banking in Malawi

Achieving Better Banking in Malawi

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Innovations for Poverty Action (IPA) in Malawi and the <a href="http://www.poverty-action.org/microsavings">Yale Savings and Payments Research Fund</a>, under the Financial Inclusion Program at IPA, partnered with the Bankers Association of Malawi (BAM) to host a policy conference on Achieving Better Banking in Malawi on November 20 – 21, 2014, in Lilongwe, Malawi.

 

The conference brought together practitioners, policymakers, and researchers to discuss the current landscape of empirical evidence on financial inclusion in Africa and its implications for policy in Malawi. Speakers and panel discussants explored how innovations in the design and delivery of financial products can be used to positively impact the welfare of poor households and enterprises in Malawi.

 

The conference showcased results from randomized evaluations in Africa on suitable financial products for smallholder farmers, financial incentives and subsidies for low-income clients, smart technologies for better banking, behavioral nudges to save, and the role of social dynamics in financial decision-making. Each session focused on a set of individual studies and how their findings can contribute to effective programs that can be taken to scale. 

 

 

<strong>FULL CONFERENCE AGENDA</strong> (<a href="/sites/default/files/malawi_conference_agenda.pdf">download</a>)

 

 

<strong>OPENING KEYNOTE</strong>

<em>Ronald Mangani, Secretary to the Treasury, Ministry of Finance</em>

 

<strong>SESSION I:</strong>

<strong>FINANCIAL TOOLS FOR SMALLHOLDER FARMERS</strong>

 

Facilitating Savings for Agriculture: Field Experimental Evidence from Malawi – Malawi

<em>Jessica Goldberg, University of Maryland-College Park</em>

<a href="/sites/default/files/commitment_savings_goldberg.pdf">presentation</a> - <a href="/project/0126">project summary</a> - <a href="http://sites.lsa.umich.edu/deanyang/wp-content/uploads/sites/205/2014/1… paper</a>

 

Agricultural Decisions after Relaxing Credit and Risk Constraints – Ghana

<em>Jessica Kiessel, Chief Programs Officer, Innovations for Poverty Action</em>

<a href="/sites/default/files/agricultural_insurance_kiessel.pdf">presentation</a> - <a href="/project/0072">project summary</a> - <a href="http://karlan.yale.edu/p/eui_QJE_r3_v15.pdf">academic paper</a>

 

Moderator: <em>Kingsley Makiyoni, Business Development Manager, National Smallholder Farmers' Association of Malawi (NASFAM)</em>

Discussants:

<em>Cornelius Mwalwanda, Former Deputy Minister Of Finance</em>

<em>Professor Ephraim Chirwa, Chancellor College, University of Malawi</em>

 

<strong>SESSION II:</strong>

<strong>PRICE DISTORTIONS AND THEIR IMPACT</strong>

 

Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya – Kenya

<em>Aaron Dibner-Dunlap, Program Manager, Innovations for Poverty Action</em>

<a href="/sites/default/files/impact_of_access_to_savings_dibner-dunlap.pdf">presentation</a> - <a href="/project/0088">project summary</a> - <a href="http://www.stanford.edu/~pdupas/SavingsConstraints.pdf">academic paper</a>

 

The Persistent Power of Behavioral Change: Long-Run Impacts of Temporary Savings Subsidies for the Poor – Kenya

<em>Aishwarya Lakshmi Ratan, Program Director, Innovations for Poverty Action</em>

<a href="/sites/default/files/long-run_impacts_of_savings_subsidies_ratan.pdf">presentation</a> - <a href="/project/0564">project summary</a> - <a href="http://www.dartmouth.edu/~sschaner/main_files/Schaner_LongRun.pdf">acad… paper</a>

Moderator:<em> Professor Ephraim Chirwa, Chancellor College, University of Malawi</em>

 

Discussants:

 
<em>Fletcher Chilumpha, Program Manager, United Nations Development Programme (UNDP)</em>

<em>Stanley Mkwamba, Head of Retail and SME Banking, Nedbank</em>

 

<strong>SESSION III:</strong>

<strong>REGULATIONS GOVERNING FINANCIAL SERVICES</strong>

 

Risk-Taking in the Banking Sector

<em>Ben Kaluwa, Chancellor College, University of Malawi</em>

<a href="/sites/default/files/ppt_ecama_2014_v01_competition_and_bank_industry.pdf">presentation</a> - <a href="/sites/default/files/bank_paper_final_feb2015.pdf">academic paper</a>

 

Moderator: <em>Thomas Munthali, Country Director, Innovations for Poverty Action-Malawi</em>

 

Discussants:

<em>Stanley Mkwamba, Head of Retail and SME Banking, Nedbank</em>

<em>Yananga Phiri, Principal Examiner-Policy &amp; Regulation, Reserve Bank of Malawi (RBM)</em>

 

<strong>SESSION IV:</strong>

<strong>FROM EVALUATION TO SCALE</strong>

 

Evaluating and Scaling Smart Technologies for Better Banking – Malawi
 

<em>Jessica Goldberg, University of Maryland-College Park</em>

<a href="/sites/default/files/fingerprinting_goldberg.pdf">presentation</a> - <a href="/project/0383">project summary</a> - <a href="http://www.poverty-action.org/sites/default/files/credit-market-consequ… paper</a>

 

The Obstacles to Scaling Promising Solutions

<em>Emily Cupito, Policy Manager, J-PAL</em>

<a href="/sites/default/files/evaluation_to_scale_cupito.pdf">presentation</a> - <a href="http://www.povertyactionlab.org/evaluation/encouraging-adoption-rainwat… summary</a>

 

Moderator: <em>Duncan Phulusa, Executive Director, Malawi Microfinance Network (MAMN)</em>

 

Discussants:

<em>Wilson Moleni, Chief Operating Officer, Opportunity Bank</em>

<em>Phindu Lipenga, Principal Examiner, Information, Communication, &amp; Technology, Reserve Bank of Malawi (RBM)</em>

 

<strong>SESSION V:</strong>

<strong>BEHAVIORAL NUDGES TO SAVE</strong>

 

Effect of Income Timing and Structure on Consumption and Savings Behavior – Malawi

<em>Lasse Brune, Yale University</em>

<a href="/sites/default/files/income_timing_brune.pdf">presentation</a> - <a href="/project/1048">project summary</a> - <a href="http://www-personal.umich.edu/~jtkerwin/Papers/IncomeTiming/Brune_and_K… paper</a>

 

Getting to the Top of Mind: How Reminders Increase Saving and Improving Loan Repayment through Positive Incentives – Uganda, Philippines, Bolivia, and Peru

<em>Aaron Dibner-Dunlap, IProgram Manager, Innovations for Poverty Action</em>

 
<a href="/sites/default/files/savings_reminders_dibner-dunlap.pdf">presentation</a> - <a href="/messaging">project summary</a> - <a href="http://www.dartmouth.edu/~jzinman/Papers/Top-of-Mind-2014revisionfinal-… paper 1</a> - <a href="https://www.poverty-action.org/sites/default/files/260_reminders_for_sa… paper 2</a>

 

Moderator: <em>Ian Bonongwe, CEO, Malawi Savings Bank (MSB)</em>

 

Discussants:

<em>Felizarda Mbewe, Alternate Channels Manager, Malawi Savings Bank</em>

<em>Howard Bowa, Head of Retail Banking, Inde Bank</em>

<em>Chikavu Nyirenda, Senior Lecturer, Catholic University of Malawi (CUMIMA)</em>

 

<strong>SESSION VI:</strong>

<strong>MARKET-BASED SOLUTIONS TO SERVE THE POOR</strong>

 

Commercial Banks: Challenges and Successes in Reaching the Poor

<em>Andrew Mashanda, CEO, Standard Bank</em>

<a href="/sites/default/files/financial_inclusion_task_force_mashanda.pdf">presentation</a>

 

Moderator: <em>Lyness Nkungula, Executive Director, Bankers Association of Malawi (BAM)</em>

 

Discussants:

<em>Dalitso Kubalasa, Executive Director, Malawi Economic Justice Network (MEJN)</em>

<em>Tyler Tappendorf, Research Associate, The Centre for Financial Regulation &amp; Inclusion</em>

 

<strong>SESSION VII:</strong>

<strong>SOCIAL DYNAMICS AND FINANCIAL DECISION MAKING</strong>

 

The Cost of Convenience? Transaction Costs, Bargaining Power, and Savings Account Use – Kenya

<em>Aishwarya Lakshmi Ratan, Program Director, Innovations for Poverty Action</em>

<a href="/sites/default/files/transaction_cost__bargaining_power_ratan.pdf">presentation</a> - <a href="/project/0564">project summary</a> - <a href="http://www.dartmouth.edu/~sschaner/main_files/Schaner_ATM.pdf">academic paper</a>

 

Evaluating Village Savings and Loan Associations – Malawi, Uganda, and Ghana

<em>Emily Cupito, Policy Manager, The Abdul Latif Jameel Poverty Action Lab (J-PAL)</em>

<a href="/sites/default/files/vsla_cupito.pdf">presentation</a> - <a href="/project/0109">project summary</a> - <a href="http://www.nber.org/papers/w20600.pdf">academic paper</a>

Moderator: <em>Edward Chilima, Chief Business Development Officer, CDH Investment Bank</em>

 

Discussants:

<em>Chikavu Nyirenda, Senior Lecturer, Catholic University of Malawi (CUMIMA)</em>

<em>Fumbani Nyangulu, Chief of Operations, Malawi Union of Savings and Credit Cooperatives (MUSCCO)</em>

 

<strong>CLOSING REMARKS:</strong>

<strong>IMPLICATIONS FOR FINANCIAL INCLUSION POLICY IN MALAWI</strong>

 

<em>Thomas Munthali, Country Director, Innovations for Poverty Action-Malawi</em>

<em>Lyness Nkungula, Executive Director, Bankers Association of Malawi</em>

<em>Ralph Tseka, Director of Economic Affairs, Ministry of Finance, Economic Planning and Development</em>

 

 

<em>This conference was organized in collaboration with the Bankers Association of Malawi:</em>

 

 

 

The <a href="http://www.poverty-action.org/microsavings">Yale Savings and Payments Research Fund</a> at Innovations for Poverty Action, supported by the Bill &amp; Melinda Gates Foundation and managed by IPA in collaboration with Yale University, supports rigorous research on innovations that enable the poor to increase their savings and make better use of enhanced payment channels. With a focus on engaging new technologies and digital delivery channels, such as mobile and agent banking, projects supported by the fund study which innovations work best in helping the poor better utilize financial products and new payment channels.

 
<h2>City</h2>Lilongwe<h2>Country</h2>Malawi