Opportunity Bank Malawi profile

Opportunity Bank Malawi (OBM) is a commercial microfinance bank that occupies a unique space in the Malawian financial system, as it takes deposits and targets Malawian populations in peri-urban and rural areas where commercial banks do not operate. OBM's agricultural loan program is facilitated by collecting individual farmer data using mobile devices and cross-referencing it with the farmer's loan repayment history and information provided by extension service providers (ESPs). Each farmer has an OBM savings account, and at the time of sale, the ESP calculates the net balance due to the farmer after the loan is repaid and deposits it into their account. Farmers can check their balance and make transactions on OBM's Bank Manja mobile phone platform or using OBM's Bank Mkhonde point of sale (POS) devices located at Kalima Gold input depots. OBM uses a range of technologies, including mobile phones, electronic data capture POS devices, customer relationship management (CRM) and loan portfolio management software tools, and unstructured supplementary service data (USSD). The bank operates both services, and users pay a fee each time they access OBM's mobile banking menu via USSD. The primary markets for OBM's services are Malawi, and the users are primarily peri-urban and rural individuals, including farmers. The business model for OBM's mobile banking services is based on fees to access the services, which provide a new revenue stream for the bank. These alternative delivery channels also help OBM reach rural populations and decongest their physical branches. The bank is consistently profitable and currently has more than 500,000 clients. While OBM has not conducted any impact evaluations of its banking services, farmers who use OBM's mobile services can benefit from lower transaction costs and a traceable audit trail that can be used to create a financial identity and history for users to determine credit worthiness. OBM's mobile banking services have several benefits for both the bank and its clients. For the bank, the services reduce side-selling and loan disbursal/repayment costs. For clients, the services provide a convenient and cost-effective way to manage their finances, including checking their balance and making transactions. The bank's mobile banking services are available through its Bank Manja mobile phone platform and Bank Mkhonde POS devices, which are located at Kalima Gold input depots.