Economic expert Brown Chitekwere says he has welcomed plans by Malawi’s banking sector to migrate financial services including cheque transactions to fully digital platforms, saying the move aligns with global financial trends and could increase efficiency within the country’s payments ecosystem.
Chitekwere’s remarks follow a joint statement issued by the Bankers Association of Malawi (BAM) and the Reserve Bank of Malawi (RBM) confirming that the banking industry will phase out traditional cheque processing and transition to digital alternatives.
The statement, signed by BAM Chief Executive Officer Lyness Nkungula and RBM Governor Macdonald Mwale, pointed out that the initiative forms part of ongoing legal and regulatory reforms aimed at modernising the financial sector and encouraging the adoption of digital payment channels.
“The shift is intended to promote safer, faster and more efficient payment services while supporting innovation within Malawi’s financial system,” reads part of the communication.
Chitekwere noted that besides improving transaction tracking and tax compliance, digital banking tools make it easier for government and financial institutions to deal with illicit transactions and revenue leakages among others.
However, the economic expert said digital uptake in Malawi is still limited by network instability, low digital literacy among consumers, and limited adoption among small businesses.
“Although the transition is progressive, Malawi has not fully embraced digital transactions at all levels of commerce. We need orientation and awareness so that even small businesses can transact digitally like in advanced economies,” he suggested.
Across Africa, countries such as Kenya, Rwanda, and Nigeria have already established robust digital payment ecosystems driven by mobile money, QR payments, and digital banking solutions.
Malawi’s banking sector has accelerated digital reforms over the past three years, boosted by rising mobile money usage through platforms such as Airtel Money and TNM Mpamba, as well as internet banking products offered by commercial banks.
RBM has previously stated that digital payments could increase financial inclusion, improve consumer protection and reduce transaction fraud among others while supporting tax transparency.
According to BAM and RBM, full implementation timelines are expected to be announced as the financial sector finalizes policy adjustments and customer migration strategies.
