A German based University has revealed that Most Non-Governmental
Organizations in Zambia struggle to establish successful partnerships
with financial service providers for the benefit of village banking
groups.
University of Mannheim Researcher David Muller says there is need to
increase financial literacy and trust in financial service providers
among the groups in order to link them to financial Markets in the Long
Run.
He said this following a study undertaken under the Randomized Control
Trial (RCT) of the savings groups being undertaken in collaboration with
the Rural Finance Expansion Project.
Meanwhile a survey has revealed that most people in the informal
Financial Sector do not trust formal financial service providers such as
Banks because of the perceptions they have over the institutions.
Oxford Policy Management Private Sector Development and Financial
Inclusion Consultant Sonia Pietosi says most people find more charges in
the banks and do not understand them.
Ms. Pietosi says the survey further found that clients who visit the
institutions for purposes of saving have experienced deductions and say
this defeats the whole purpose of entrusting their finances with the
banks.
NGOs struggle to partner with financial service providers
