1. Focus Group Discussion (FGD)
A Group Interview Tool
ASK: How many of you have participated in a focus group discussion or conducted one? TAKE a count (it is likely that only very few or none of them have had any experience before.)
Focus group discussions or FGDs, for short, is usually a qualitative group interview tool. I said usually because focus group discussion is sometimes used as a tool for getting head counts. We will focus on the use of FGD as a qualitative tool.

2. Session Objectives Participants will learn…
The basic concepts and uses of FGD
How to conduct FGD
READ BULLETS.

3. Uses of Focus Group Discussion
Pre-product design stage
Product design validation
Product review or Operations Review
FGD is an important tool for quickly getting information and feedback from clients. We have used FGDs in a number of ways with MABS participating banks. You can use FGD for ….. READ BULLETS
Pre-product designing: To get a feel of the intended market (competition; market pricing; preferred sources); what are important to potential clients; what they like in a loan product.
Product design validation (before product test): At this stage, the purpose is to find out what clients think of the newly designed product features, policies, and requirements. Based on the “conversation” with the clients, the bank can re-calibrate or tweak features before pilot testing.
Post product test: Basically, we have used FGDs during the product or operations review process. Bank should be thinking of the following questions: “Now that the clients have experienced the product, what do they think of it? Are they satisfied or not? Are there policies and procedures we should change to better fit their requirements? What changes do they want?” FGD with clients can be used approximately 6 months after product launching, and another after a year, for refining the product and service from the bank.
Bank can use FGD in all 3 phases, especially when the bank wants to be sensitive to the market and clients.

4. FGD : Pre-Product Design Stage
Agenda
“If the participants were to design a loan product (or deposit product), what conditions would they define?
“Based on their knowledge or experience, what conditions presently exist in the market?
Personnel Requirements
Facilitator – manages the discussion
Recorder – records information or opinion expressed by participants
Materials required
Cards containing FGD items
Manila paper & Pentel pens
Attendance sheet and name tags
READ THE AGENDA ITEMS.
EXPLAIN: The first agenda item involves some scenario building -- ask the participants to think of themselves as bankers who want to provide loan services to small business activities (maliit na negosyo) like theirs.
The second agenda is something the facilitator will have to draw out as the participants discuss the specific conditions of a loan product they are putting together….
The FGD is usually conducted with a facilitator, who must be knowledgeable about the topics; a recorder helps in writing out the opinions of the participants.
The materials listed in the slide are usually used in an FGD activity. Allocate 2 pieces of Manila paper per FGD.

5. Selecting FGD Participants
Must include both men and women
Can include different business types;
Option: Conduct FGD with one type of business activity at a time, such as only those in processing and manufacturing; or only those in the public market; or only those in the food service.
Conduct at least 2 to 3 FGDs
When branch covers more than one town, conduct separate FGDs in each town.
POINTS to stress:
Unless the bank plans to design a product only for women microentrepreneurs, recommend that the FGD group include both men and women.
The FGD could be a mixed group of different microbusiness operators or conducted with homogeneous group – that is having the same type of business activity.
When a bank chooses to concentrate in a specific segment of the market, then you can limit the participants to enterprises in the particular segment.
There is no standard number of FGDs that should be conducted.
ASK: Why do we need more than one FGD? Some reasons are:
Conditions may vary in different towns or service areas served by the branch, such as between a city and rural markets.
To get a wide range of conditions, and, thus, build in the flexibility in the product during the designing stage.
Between 3 to 4 FGDs with different groups would provide a wide range of information.

6. Managing a Focus Group Discussion
Recommended FGD size : 8-12 persons
Make participants feel comfortable in voicing their opinion in a group environment
Get everyone to participate
Keep the discussion flowing
Obtain the information needed in 1 hour or less
1st BULLET: A very big FGD is unwieldy, and not really productive in getting everyone to express an opinion.
QUESTION: How about if there are less than 8 persons, such as 5 persons only? Go ahead and start the discussion. Some of those invited can catch up later (facilitator will have to explain the purpose of the discussion to those who come in late).
Facilitators must not argue with the participants. You want to get the information from them, not argue with them.
The facilitator should not allow anyone to monopolize the session. Everyone must participate. To do this, one of the techniques is to use “topic cards” that you have seen earlier.

7. Preparing for the FGD The facilitator should know…
Details of the questions for discussion
The types of business activities in the area
Logistical arrangements
to conduct FGD…
Invitations clearly communicate what is required of participants
Find time acceptable to the majority of the selected clients
Meeting place, refreshments, transportation requirements
It is important that the facilitator is familiar with the items in the FGD agenda.
The facilitator should ask the person inviting the FGD participants to list the types of business activities the participants are engaged in. If this is not done, the facilitator should ask the participants their business activity during the introduction portion.
To the extent possible, the venue for the FGD should be outside of the bank premises.

8. “If you were designing a loan product, what conditions would you have for ….
Client eligibility criteria
Loan size
(initial, minimum, maximum)
Interest Rate (%)
Service Charge (%)
Interest charges deducted up-front or amortized?
Term of loan
Frequency of payment
Collateral/Co-signer
Penalty for delayed payments
Mandatory Savings
It would be good to have the group touch on all of the items in the list.
However, the facilitator should be sensitive that they are not held more than 45 minutes to 1 hour. Some of the participants would close their shops to attend the meeting. The bank management should therefore decide which 8 items in the list deserve priority. If there are other FGDs to be conducted, the facilitator should make an effort to have the group discuss the items not discussed in the previous FGDs.

9. Conducting the FGD
Facilitator introduces self and recorder; explains the purpose of the session
Warm-up : ask the participants to introduce themselves; start with a question on something familiar to them
Asks the person holding the card with the 1st item on it to give his/her opinion
Facilitator opens the discussion on the specific question to everyone who wants to answer
Move to the person holding the card with the 2nd question
As participants come in, the recorder should ask them to sign their names in the attendance sheet (name, type of business) – the information will be helpful to the facilitator. Write the nickname of each participant in a name tag (pieces of masking tape can be used).
READ 1ST BULLET:
Why they have been invited: Example –”We want to consult with you on possible services the bank could offer for small businesses like yours.” ( Ex.: “Makipag-istoryahan at kumunsulta kung anong serbisyo ang maaaring gawin ng bangko para sa mga maliliit na negosyo.”). It is important to mention that there are no right or wrong opinions. That the facilitator’s job is to listen to what they have to say.
2ND BULLET:
Request participant names and business activity. (Recorder should keep track of information on their business, if these have not been recorded in the attendance sheet.) A warm-up might be a question on a topic that is familiar to the participants, such as their business, or some local events. Example: “Tell me about business in your place at this time.”
Give each participant a card. When the number of participants are fewer than the number of cards, some participants will get more than one card. The card will ensure that participants will be able to answer at least one question each.
READ THE REST OF THE BULLETS. GO TO NEXT SLIDE.

10. Conducting the FGD Open discussion to everyone …
… and so on, until all the questions have been discussed
Summarize
Tell the participants its their turn to ask questions (serve refreshments; if the bank has any giveaways, distribute at this point)
Thank participants
READ BULLETS.
Points to emphasize…
In an FGD, there might be one or two persons who tend to dominate the discussion (the “opinion leaders”). Some participants may feel intimidated or fear expressing their own views. The facilitator should try to encourage those who have not expressed their opinions to share what they think during the open discussion, and not just follow what “opinion leaders” say.

11. Option : Nominal Voting Process
An optional step to determine how many people agree to a certain suggestion or recommendation
Applicable if more than one group is interviewed, with a significant number of total interviewees
Because information gathered at the FGDs may affect program design, management may want to know exactly how many from each group interviewed voted for a certain recommendation
Management determines whether a numerical count is important.
Voting may be done either (1) after each recommendation has been identified, or (2) after all recommendations have been identified. If (2) is decided upon, the facilitator may want to ask if there are any more recommendations

12. Things to Avoid Do not raise expectations
Participants might expect that they can get a loan when product is implemented
Explain that their opinions, along with those of other groups you will consult with, will be studied; that the bank will let them know when the bank may be ready to accept applications
Expectation of receiving a loan: Explain that there is no product yet, and that the bank…
is still in the process of consulting with other groups like them;
will seriously look at their opinions and recommendations, along with those of other groups;
will let them know if/when the bank is ready to entertain applications.

13. Sample Matrix for recording answers
FGD Item
Answers
Eligibility : What would you require? Why
Loan Size : How much loan would you allow a borrower? Minimum? Maximum
How much interest rate would you charge? Why

14. Analyzing the Data
If more than one group was interviewed, transcribe all data for each group matrix into a summary matrix
Study the summary matrix and tally the results
Summarize the finding
Report the findings; use them for product designing
At the end of the day, take all the information gathered from the individual matrices and transcribe them into a summary matrix. The facilitator and recorder should work together on this task.
The facilitator and recorder should be able to attribute specific answers and recommendations to a particular group. This information will help in writing up the findings. For example, which group came up with a certain suggestion or recommended? Would this suggestion/recommendation be applicable to the whole program?

15. Group Activity: FGD Practice
Select a facilitator and a recorder.
5 to 8 trainees can act as participants.
Critiquing
Before ending the session, have some fun activity with the trainees by holding a “mock” FGD with the trainees as the microentrepreneurs.
This will allow the participants to practice conducting an FGD. During the field practicum, the trainees will have a chance to observe how an FGD is done with real micro business owners participating in it. Although the training facilitator can conduct the FGD during the field practicum, the option is to let the trainees handle it for good practice.
Allow time for diagnosing what went well and what should be improved.