market survey expansion through micro-banking offices

Market SurveyExpansion through Micro-Banking Offices

• What is it? • Why do we need it?• Who are our target respondents?• How many do we need to interview?• How do we do interviewing?• How do we process the responses?

• What is it? – Micro-banking Office Market Survey

• Why do we need it?– To determine the various banking services needed

by residents in the target area– To estimate size of different market segments such

as OFW families, farming families, – To estimate potential micro loan clients and micro

depositors– To ascertain socio-economic status of households

through poverty self-assessment

• Who are our target respondents?– The bank should determine the target respondents’

age and where they are located (i.e. municipality, barangay)

• How many do we need to interview?– At least 50 randomly selected respondents

• How do we do interviewing?– Organize group of interviewers

• How do we process the responses?– Responses will be tabulated, summarized

and analyzed to be used to determine potential services

– Template included in the CD

• Respondent’s Personal Profile• Income Sources of the Respondent• Income Sources of the Household• Loans• Savings• Micro-insurance• Mobile Phone Banking• Payment Center• Access to Bank• Poverty Self-assessment

1. Walk through the questionnaire2. Practice reading3. Mock interviewing4. Hands-on-Practice with Clients

• Total Number of Respondents: 100• Period of Survey: 2011 Nov 15 - Dec 15• Location of Survey: Municipalities of X and Y

12 barangays

• Gender distribution- Pre-dominantly female (69%)

• Age- Median age of 30- Younger age group (18-24) make up

2.94%- Over 60 make up 9.80%

• Civil Status- Majority (70%) are married

Number %

No job/ no source of livelihood

30 30%

Local employment 8 8%

Overseas employment 30 30%

Business (non-farm) 10 10%

Farming 20 20%

Practice of professsion 2 2%

Total 100 100%

Number %

No job/ no source of livelihood 0 0%

Local employment 38 38%

Overseas employment

20 20%

Business (non-farm) 10 10%

Farming 20 20%

Practice of professsion 12 12%

Total 100 100%

• 88.10% of the respondents availed of a loan in the last 12 months.

POINTS TO CONSIDER Is the market exposed to credit? Is the

demand manifested in loan availments for the past 12 months?

POINTS TO CONSIDER Who are the existing credit providers in the area? (Knowing your competitors)

Credit Sources Approached Borrowed from Current Loan

Family/ Relatives 0

Friends/Neighbors 0

Commercial/ Thrift Bank 8

Rural Bank (Gold, ABC, 123) 20

NGO/ Foundation 90 45 4

Cooperatives 18

Lending Investors 10

Pawnshop 10 1

Informal lenders/ Bombays/ 78

• NGOs, to include CARD and TSPI, aggressively sell their credit products to 90% of the respondents

• 50% of those approached by NGOs actually applied and were granted a loan

• Only 10% of those who availed currently have a loan

Likely Purpose of Loans

Initial business capital (non-farm) Emergency (hospitalization)

Additional working capital for business

20% House repairs and/or improvements

10%

Finance farming activities 10% House and/or lot acquisition

Purchase of business/ farm equipments

2% Acquisition of appliances/ personal gadgets

Purchase of vehicles 6% Household consumption

Education expenses 1% Pay another loan

• Top three purposes that respondents would likely borrow for include additional working capital (20%), house repairs and improvements (10%), and finance farming activities (10%)

Where they keep their savings

Commercial Bank 4

Rural Bank 6

NGO 10

Cooperatives 10

ROSCAs or Paluwagan

At home 70

• All respondents set aside money for savings• Majority 70% keep their savings at home• Of the 10 respondents with savings account in a

bank, they all have ATM accounts • Affordable initial deposit PhP 100 (98%)

What type of savings account

None

Savings deposit

Time deposit

ATM account 10

Checking account

Insurance Products

Life 63

Accident 17

Health/ Hospitalization 10

Property

• Only 1 respondent has an insurance for himself, a life insurance which he bought through an insurance agent

• If an insurance product is easily available, 90% will likely buy for themselves, mostly life (70%)

Insurance Products

Life 63

Accident 17

Health/ Hospitalization

10

Property

• All do not have an insurance for his family• If an insurance product is easily available, 90%

will likely buy for themselves, mostly life (70%)

• 50% of the respondents have their own cellphone• An average of 5 members of their household have a

cellphone• They are mostly subscribers of Globe (60%)

Network Subscription

Globe 60%

Touch Mobile TM 10%

Smart 20%

Talk and Text 10%

Red Mobile

Sun Cellular

• Only 2 respondents have used Smart Money for remittance.

• 50% will be interested to use their cellphone for sending or receiving money

Mobile Phone Financial Transactions

Send or receive money 50%

Pay loan

Send savings deposit to bank 10%

Pay utilities 40%

• 40% of the respondents used some services of a payment center

• Remittance (60%) and pay utilities (30%) comprise most of transactions done in a payment center.

Payment Center Transactions

Send or receive money 60%

Pay utilities 30%

Pay loans

Premiums for SSS, GSIS, Philhealth 10%

• Average of 45 minutes to go to the nearest bank• 90% are interested to use the services of a rural bank if

available in the area• Loans(60%) and deposit (30%) services are needed the

most

Banking services

Loans 60%

Deposits 30%

Micro-insurance 5%

Bills payment 4%

Send and receive money

ATM 1%

• 80% of the respondents consider themselves to be poor