Banks May Soon Offer Brokerage, Insurance and Portfolio Management Services Under One Roof

Bank branches across Nepal could soon offer more than just deposit and lending services, with the government exploring a one-stop financial service model that would include insurance, share brokerage, and portfolio management. The Ministry of Finance has formed a high-level expert committee to study the feasibility of delivering these services through the extensive branch networks of banks. The committee was formed under the five-year Financial Sector Development Strategy approved by the Cabinet. It is coordinated by National Planning Commission member Dr. Sanjay Acharya. The initiative aims to address the limited access to insurance and capital market services in rural areas, where establishing separate brokerage firms and insurance offices may be costly and difficult. Under the proposed model, banks could provide customers with access to brokerage services, professional portfolio management, and insurance through dedicated teams. The study will also examine the possibility of reviving bancassurance. Such services could help rural customers who lack technical knowledge of the stock market or face difficulties using online trading platforms such as TMS. The committee will also study a model for providing loans alongside entrepreneurship training to reduce the risk of loans becoming non-performing due to a lack of business skills. The committee includes Finance Ministry Joint Secretary Mahesh Acharya, Nepal Rastra Bank Executive Director Ramu Paudel, and expert member Mausami Shrestha, under the coordination of Dr. Sanjay Acharya. Meanwhile, the high-level Financial Sector Coordination Committee, led by the Finance Minister, has directed financial regulators to simplify financial services. The committee noted that depositors are under pressure as fixed-deposit interest rates have fallen below 3 percent while inflation remains above 5 percent, and has asked Nepal Rastra Bank to explore solutions. The regulators have also been instructed to simplify the loan application process, reduce the burden of signing numerous documents, and ensure the effective implementation of a centralized Know Your Customer (CKYC) system. Nepal Rastra Bank, the Securities Board of Nepal, and the Nepal Insurance Authority have been directed to work toward making financial services more accessible and efficient.