Old Mutual launches OMFIN microfinance arm in Malawi

Old Mutual Malawi has launched Old Mutual Finance Limited (OMFIN), a new non-deposit-taking microfinance institution aimed at expanding credit access through digital lending. The institution is introducing two primary products: the Payroll Loan, which targets salaried employees of partner employers, and the Golden Reserve Loan, which is designed for customers with pension or annuity investments held within Old Mutual.

OMFIN’s lending model focuses on character and repayment capacity rather than traditional collateral. General Manager Kisa Kalolokesya stated that the approach aims to provide credit commensurate with a borrower's income.

During the launch in Lilongwe, Reserve Bank of Malawi Governor George Partridge emphasized the need for financial inclusion to drive national development. While acknowledging that digital technologies can increase accessibility, Partridge urged the sector to prioritize responsible innovation, consumer protection, and sound governance to prevent over-indebtedness and ensure long-term customer trust.