Market Survey Expansion 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 questionnaire 2.Practice reading 3.Mock interviewing 4.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 3030% Local employment88% Overseas employment3030% Business (non-farm)1010% Farming2020% Practice of professsion22% Total100100%

Number% No job/ no source of livelihood00% Local employment3838% Overseas employment 2020% Business (non-farm)1010% Farming2020% Practice of professsion1212% Total100100%

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 SourcesApproachedBorrowed fromCurrent Loan Family/ Relatives0 Friends/Neighbors0 Commercial/ Thrift Bank8 Rural Bank (Gold, ABC, 123)20 NGO/ Foundation90454 Cooperatives18 Lending Investors10 Pawnshop101 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 activities10%House and/or lot acquisition Purchase of business/ farm equipments 2%Acquisition of appliances/ personal gadgets Purchase of vehicles6%Household consumption Education expenses1%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 Bank4 Rural Bank6 NGO10 Cooperatives10 ROSCAs or Paluwagan At home70 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 account10 Checking account

Insurance Products Life63 Accident17 Health/ Hospitalization10 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 Life63 Accident17 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 Globe60% Touch Mobile TM10% Smart20% Talk and Text10% 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 money50% Pay loan Send savings deposit to bank10% Pay utilities40%

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 money60% Pay utilities30% Pay loans Premiums for SSS, GSIS, Philhealth10%

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 Loans60% Deposits30% Micro-insurance5% Bills payment4% Send and receive money ATM1%

80% of the respondents consider themselves to be poor