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NGOs struggle to partner with financial service providers

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.

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