kenya – financial access study performed by the steadman group
TRANSCRIPT
Kenya – Financial Access Study
Performed by the Steadman Group
Methodology
• Sampling based on the CBS NASSEP IV sampling frame
• Drawn from all 69 districts
• Random selection of cluster, household and individual
• Sample size achieved of 4,218
•Distribution of the samples (individuals aged 16 and over)
Nairobi 438
Central 570
Coast 360
Eastern 690
North Eastern 140
Nyanza 710
Rif t Valley 1,050
Western 460
Results overview
• Outreach of financial service providers
• Financial access strand
• Usage of savings, credit, money transfer and insurance
• Informal groups
• Technology
• Youth
Outreach of financial service providers
Financial Access Strand
Bank Account Usage by Province
Financial access bymain source of income
• Most of the banked work:– for a wage in a large
establishment– in their own business
• Most of the unbanked get income by– producing food crops– transfers from family /
friends
Characteristics of the banked / unbanked
• Majority of the banked: – are male– have secondary
education or higher– own a mobile phone
• Most of the unbanked:– are female .– more likely to have little
education– have no access to a
mobile phone
Usage of savings products
Usage of credit products
Usage of money transfer services
•Transfers within Kenya•Mostly informal using family / friend or matatu
•Transfers outside Kenya•Mostly formal using transfer agencies or a bank account
Usage of insurance products
*multiple responses were spontaneously mentioned by interviewees
Informal groups
Typical group activities –•Give one member all monies collected in one round•Raise money for emergencies•Raise money for funerals•Lend money to members when they need it
Mobile phone usage
Youth – 16/17 year oldsSource of income
•5% with formal services•2% with indirect access through guardian•One in three earn a living in agriculture
Analysis of the Data
Supply:banking services follows formaleconomy…
Supplybank penetration is driven by thesize of the market
Informal finance:Formal and informal finance are not substitutes
Informal finance
Banked and unserved use of informal credit and savings equally
Financial “Exclusion”Factors:
• Cost / Affordability– Low incomes / cash balances (not worth banking– Access barriers (opening / minimum balances)– Transactions costs (transport, time)
• Availability of Informal (cheaper) alternatives– Shopkeepers / suppliers: credit– Friends, family, savings, credit, insurance, remittances. – Matatu / buses: remittances
• Unavailability (Northeastern)
Increasing outreach &demand:
• Cost cutting innovations to make affordable banking services commercially viable– Cellular phone banking– Alternatives, low cost outlets, agencies.– Product innovation e.g. over the counter savings products.
• Promoting SACCOs outside formal employment / cash crop agriculture
• Promoting payments / savings oriented MFI’s.