Key providers for lenders in Malawi: Credit scoring, KYC, and payment

Real people, from busy markets in Blantyre to remote villages in Dedza, are experiencing unprecedented opportunities through small loans that can change lives.

But here’s the catch: Figuring out who to trust with a loan can be tricky for lenders.

With about 60% of Malawians outside the formal banking system (Finscope, 2019), traditional credit history isn’t much help. Instead, lenders are turning to a mix of credit scoring, KYC (Know Your Customer) solutions, and payment technologies to understand better and reach their customers.

Take credit scoring, for example. In a place where formal records are often limited, lenders are getting creative, relying on things like mobile payment histories and digital data. This shift is already making waves, thanks to Malawi’s growing mobile base, with over 14 million subscribers in 2023 alone.

Today, we’ll look at some of the key providers making it all possible — from those developing credit scoring models tailored to Malawians’ lives to KYC and payment services that bring secure, accessible options to people across the country.

Also read: Key providers for lenders in Uganda: Credit scoring, KYC, and payment

Why are these providers important?

Let’s look at some numbers. According to the Reserve Bank of Malawi, only about 11% of Malawian adults have access to credit from formal financial institutions, and as demand rises, lenders’ challenges are intensifying. In 2022, the non-performing loan (NPL) ratio in Malawi’s banking sector stood at 6.1%, highlighting a critical need for precise tools to assess borrowers effectively and prevent loan defaults.

The real challenge for lenders isn’t just offering credit but ensuring that borrowers can handle it responsibly. Without reliable credit information, accurate scoring, and thorough KYC checks, lenders risk high rates of bad debt and costly compliance issues. In Malawi’s lending market, thriving as a lender takes more than just capital — it requires smart technology, trustworthy data, strong compliance, and secure payment systems to keep finances manageable and risks low.

Top 5 service providers in Malawi

Malawi is home to various providers that can help scale your loan business. Here’s a closer look at some of these top service providers.

Credit Data CRB

Founded in 2010 by Managing Director Patricia Mwase, Credit Data CRB is dedicated to simplifying and improving the borrowing process for lenders and borrowers across Malawi. With a vision to build a healthier credit culture, The bureau was established to foster trust through reliable information and responsible lending practices. Credit Data CRB collaborates with various institutions — from banks and microfinance organizations to courts and utility providers — to collect and securely store essential credit information. This data forms the basis of comprehensive credit reports, which help lenders make informed decisions while reducing overall credit risk and expanding financial access for Malawians.

Credit Data CRB’s services include three core reports that cater to lenders’ specific needs. The Credit History Report provides a snapshot of liabilities held by individuals or businesses, while the Comprehensive Report compiles extensive data from various sources for a full credit profile. The Sector Report offers insight into credit activities within particular industries, giving lenders a better understanding of risks within specific economic sectors.

Importantly, Credit Data CRB doesn’t influence whether or not an application should be approved. They provide neutral, factual details about credit commitments and contact information, enabling lenders to make well-informed choices. As a regulated institution operating under the Credit Reference Bureau Act of 2010, we adhere to high professionalism and data security standards. 

Also read: Best loan management software for Malawian lenders: Lendsqr vs. Acumatica

Kakupay

KakuPay isn’t just an online payment solution; it’s making managing money in Malawi easier and more secure than ever. Founded in 2015 by Nicholson Kumwenda, CEO and Chairman of Wealthnet Finance Ltd, KakuPay was designed to simplify how Malawians handle their finances. Whether sending money to family, paying for essentials, or managing business transactions, KakuPay allows users to do it all directly from their mobile phones or any internet-connected device.

As Malawi’s first online payment gateway, KakuPay has transformed how transactions are made with features built for accessibility. Its payment options support everything from person-to-person transfers to business transactions, making it versatile for customers at every level. With KakuPay’s digital wallet, users have a secure place to store and manage funds online—a shift from traditional cash-based transactions and a big step toward financial inclusion.

KakuPay also offers a useful time-tracking feature for businesses, allowing them to track time spent on different activities, improving efficiency. The “Connect” feature enables seamless transactions between buyers and sellers regardless of location, reducing the need for travel and face-to-face exchanges. For many Malawians, KakuPay has become more than just a payment tool; it’s a bridge to a growing digital economy.

Pesapal

Pesapal is making payments simpler and more secure for individuals and businesses throughout Malawi. Founded in 2009 by Agosta Liko, Pesapal’s mission is rooted in building innovative financial services that are accessible and empowering. For many Malawians, Pesapal represents an affordable and secure way to manage payments digitally. A shift that opens doors to new opportunities for entrepreneurs, small businesses, and everyday users alike.

Pesapal’s services cater to diverse needs, offering solutions that make it easy to handle payments. With its E-invoice feature, businesses can create and send customized, branded invoices via email, giving them a professional edge and a streamlined way to manage payments.

The Online Payment Link service allows businesses to create a payment link for customers, even without a website, making online payments accessible to businesses of any size. For in-person transactions, the Pesapal Sabi POS offers a simple way to pay and get paid, helping businesses manage sales directly on-site. One of Pesapal’s standout features is its Payment Integrations API, which allows online businesses to integrate payment options seamlessly, making it easier than ever to accept payments online. 

Matiyas

Matiyas, founded in 2020 by Shabbirali Matiya, drives business innovation in Malawi by offering enterprise resource planning (ERP) and automation solutions tailored for local industries. With a strong emphasis on bridging the gap in advanced technology, Matiyas aims to make complex business management simpler and more accessible. From ERP development and implementation to comprehensive consulting services, Matiyas equips businesses with digital tools that streamline operations, enhance productivity, and offer actionable insights.

The company’s ERP Development service creates custom applications that fit each business’s specific workflows and operational needs, ensuring the solution is truly aligned with their processes. ERP Implementation then ensures that these systems are integrated smoothly within an organization, addressing everything from data migration to employee training. For businesses exploring ERP for the first time or those looking to optimize their systems, ERP Consulting helps select the most effective ERP solutions to match their goals.

What sets Matiyas apart is its dedication to customizing ERP software for specific industry needs. By integrating various business functions—such as finance, supply chain, and customer management—into a single platform, Matiyas ERP solutions provide real-time insights and improved efficiency for lenders looking to go digital.

Uqudo

Uqudo, founded in 2019 by Mohamed E. Fagiri, is a digital identity company focused on creating trust in online interactions. As a top digital identity provider in EMEA, Uqudo builds robust systems to support secure and transparent digital lives. With extensive experience partnering with governments and regulators, Uqudo has delivered large-scale national identity programs prioritizing safety and accessibility.

For lenders, Uqudo offers tools that simplify identity verification. Their AI-powered Document Scanning allows for quick data extraction from ID documents, and with government data integrations, lenders can confidently verify document authenticity. Face verification also enables fast and reliable customer identity confirmation.

Uqudo goes further to check against over 900 global lists, including Politically Exposed Persons (PEPs) and adverse media databases, giving lenders insight into potential risks. Additional biometric security measures, such as fingerprint and voice recognition, add an extra level of protection to their identity services.

Also read: Best loan management software for Ugandan lenders: Lendsqr vs. Ssentezo

The partners you need to thrive in Malawi’s market

As you step into Malawi’s lending ecosystem, remember that it’s not just about disbursing loans; it’s about choosing the right partners. Credit bureaus, KYC providers, and payment solutions are like your co-navigators, helping you manage the unique challenges of lending in Malawi. They’re there to help you assess risk, verify customer identities, and ensure secure transactions. So, invest in these relationships, understand your providers’ strengths, and set your lending business up for sustainable growth. Book a free demo today to learn how Lendsqr can support your success in Malawi’s market.