MARKET RESEARCH ON FINANCIAL SERVICES IN THE DEMOCRATIC REPUBLIC OF THE CONGO FOCUS GROUPS WITH HOUSEHOLD DECISION MAKERS DISCUSSION GUIDE

Transcription

1 MARKET RESEARCH ON FINANCIAL SERVICES IN THE DEMOCRATIC REPUBLIC OF THE CONGO FOCUS GROUPS WITH HOUSEHOLD DECISION MAKERS DISCUSSION GUIDE POTENTIAL USERS OF MOBILE MONEY SECTION A: Welcome and Introduction [5 min] Respondent Names (Women/KASANGULU) Francisca Corinne Nadine Laetitia SECTION B: Warm-up [10 min] [Warm-up] Now, to start off, please tell me a bit about yourselves and your families. Please tell me your name, how old you are, what is your occupation, how big is your family? FRANCISCA: I a teacher at a comprehensive school, I am single without children and I am 35 years old. I am leaving with my sisters at home. CORINNE: I am 26 years old, single, I am a dietary expert working at a health centre, I don t have children yet. NADINE: Mother of one daughter, I am 30 years old, a housewife and dressmaker. LAETITIA: I am 28 years old; I am working at one of Airtel shop, single and no children yet. Now, can you tell me a bit about your family budget: what do you typically spend money on, what portions of your household income you allocate to different budget items, for example, food, utility bills, children s school fees, savings, insurance and others? (FRANCISCA) at my place, even if the salary is not enough but I am paying rent, electricity and water bills, then I can think of foods, just laying in stocks of foods. 1

2 (CORINNE) I am splitting my salary in two parts, one to be saved and another to be used for rent and stocks of foods for the month. (NADINE) my husband gives the money for payment of water and electricity bills as well as for other expenditures. (LAETICIA) I am saving one part, I use the remaining for payment of bills and school fees of my sisters that are still studying and another part is for other things. SECTION C: Use of Financial Services [40 min] Speaking of budget and finances, could you tell me specific services your household uses regularly? Just to remind you, when I say financial services I mean money transfers, that is, sending/receiving money domestically or internationally, paying utility bills, savings, salary payments, insurance, loans, micro loans. (LAETITIA) provide my sisters with financial supports for their studies at Kinshasa. (NADINE) I am sending money to my sisters at Kinshasa, I am in what we call LIKELEMBA here (small group of people agreeing on the fact that all members of the said group must give a fixed amount of money to one member at fixed period of time and this shall be done for every member in turns). I am also selling beers. (CORINNE) I pay my bills. (FRANCISCA) I pay my bills, I send money to my family at Kinshasa, and I also sent money to Kinshasa from here. (CORINNE) I make cash payment from hand to hand, I once gave the money to someone who diddled me and I decided not to do so anymore. (NADINE) I make transfer through Amis Fidèles (remittance agency) for my little sister that is living at Kinshasa. (LAETITIA) I transferred money to Kinshasa using Airtel Money. Exercise 1 Money Transfer Tell me about the financial service, for example, who did you send money to or receive money from? Where do they live? What was the reason for sending/receiving money? Who did you go to for this service? What was the provider for this service? What currency do you normally use to send/receive money? Which part of the country do you send money to? /receive money from? What are the reasons for the transactions? Emergencies, family, business? 2

3 (FRANCISCA) here at Amis Fidèles, it is established since two years now and it is the unique mean we have but through phone I once sent money using M-Pesa. But their establishment came when I suspended because of lack of shop and I went back sending money through Amis Fidèles; for 50$ we pay 1$ as fees, note that it is cheap. FINCA is not established here, they come from Kinshasa; we also have CAMEC which is a savings and loans organization. With Amis Fidèles it is difficult to do thing in secret but with phone there is secrecy. I also send money to Bandundu using SOFICOM agency every month. My colleague sends me money and I received it, in US dollar and Congolese Franc but sometimes with SOFICOM they send me money in US dollar but I received in Congolese Franc. For the time being I receive through Western Union the money coming from my brother who is living in Germany and I am withdrawing the money here in Kinshasa. (CORINNE), when I was at Kinshasa I used to make transfer through ProCredit Bank and here I am doing it through Amis Fidèles. As I go to Kinshasa every weekend I prefer going with my money. I have done it with M-Pesa but they don t have enough shops inside the country because my brother who is at Lubumbashi for example cannot receive money from me through M-Pesa because of lack of withdrawal shop. (NADINE) at UPN (Kinshasa district) Once at Mister Cash Agency, I also sent money to BOMA for little brother through Amis Fidèles; I receive money from Matadi, Boma and Kinshasa and sometimes I also send to Kinshasa. We are sending money to support our families in the event of urgencies. (LAETICIA) before Airtel Money I was doing transfer with Money Gram and here I send money with Airtel Money and you have to own an account to perform the transaction, make a deposit of even a small amount before sending; note that it is cheap in terms of percentage. This depends on money to send, this is what attracts customers. How many different providers do you use for this service? How do you choose which provider to use each time? For example, do you choose the one with the lowest price, the one closest to you, or do you have any other reasons for choosing a particular provider? (FRANCISCA) I use CAMEC since FINCA is not established here yet, they are based at Kinshasa but not yet here. (CORINNE) here at KASANGULU, there is only one transfer agency which is Amis Fidèles, CAMEC is working only here in BAS CONGO while Amis Fidèles is working throughout the country. Have you ever used a mobile money service to send/receive money? Why/Why not? 3

4 (FRANCISCA) mobile money is interested us but they have to provide more information. It is cheap but I did not try it yet. (CORINNE) I own M-Pesa account since I am here within the week working days and the weekend I am using it for ma recharge of phone credit and now I can also send money with it. (NADINE) I used M-Pesa last year as mean of saving money. (LAETICIA) I preferred using Airtel Money at first so that at the end of month I could send money. What problems have you experienced with each method when trying to send/receive money? How often do you experience these types of problems? E.g. Every time, now and then? How are these problems affecting your usage of these services? Are they stopping you from using them? Or making you use them less often? (FRANCISCA) with Amis Fidèles I don t experience problems yet. (CORINNE) with PROCREDIT I have never experienced problems till now. (LAETITIA) with Airtel Money no, but once I experienced a problem with the way my name was written and I called the person who sent the money to correct, it was done and I receive the money. Before there were also some bonus on each transfer but once Money Gram made things difficult for me and I decided not to go back there again. (NADINE) I used M-Pesa and I went to their shop and there was no connection and I was blocked. I could not do what I was supposed to do. How does making payments to suppliers using a mobile money service compare to other providers? What are the advantages/disadvantages of using mobile money? (FRANCISCA) I prefer using my phone than using agencies since it will be easier and cheaper. (CORINNE) for agencies I must move to the agency but for phone I done have to move, I think it more convenient for me. Do you use different methods at different times? What methods? Why do you use each? 4

5 (LAETITIA) I have already done it once, I sent money to someone through a person and I needed to trust this person. Through the post there were no problems because workers are trustful. (FRANCISCA) we are doing it seldom since trustful people are not seen everywhere. (FRANCISCA) I don t have other means of transferring money since FINCA is not yet established here, so the only mean is Amis Fidèles. Salary, wage, compensation How do you receive your salary/wage/compensation that is the remuneration that you get from your primary occupation? In what currency do you receive you wages/remuneration? (FRANCISCA) I receive cash. (CORINNE) I receive cash in Congolese franc. (NADINE) I receive cash in Congolese franc. (LAETITIA) through Airtel Money in US dollar. (FRANCISCA) I receive cash through Caritas in Congolese franc. Would you like to collect your remuneration in any other way? Why/Why not? (CORINNE) at Kinshasa it is done with civil servant payments through banks and I wish that it could be established here, I would even prefer getting my salary as at Kinshasa (FRANCISCA) before they paid us but there are risks and this has already been done in KIMBANGUISTES schools; they pay us but the money was not complete. Have you ever used a mobile money service to receive your salary? Why/Why not? How was your experience while using mobile money? What problems have you experienced? (NADINE) yes, I have already used mobile money and I am satisfied. There was no problem with it. (LAETITIA) with Airtel money we don t have problems. 5

6 (FRANCISCA) there is no problem, on the contrary it would be a good thing to start paying us through mobile money since in banks there are a lot of people but with mobile money it more speeds. (NADINE) not yet but I think it would a good thing to do it with mobile money. (LAETITIA) even in cash or at the bank but I more like this system of being paid with Airtel money because it is easier. (FRANCISCA) it would be a good thing that Caritas accepts paying with mobile money. Paying bills What kind of utility bills do you pay? Do you pay TV fees, electricity, gas or others? In what currency do you normally pay utility bills? What is the method/what are the methods of paying bills? (CORINNE) for electricity and water bills, we collect money and then we give to the lessor and I go to pay to their office in Congolese franc. (FRANCISCA) I am doing the same thing, i.e. collecting money, giving to the lessor that is going to directly pay to their office in Congolese franc. (LAETITIA) we are living alone in the compound and we are paying ourselves, we just send someone trusty who is going to pay to SNEL or REGIDESO office in cash in Congolese franc. (NADINE) the same thing for electricity and water bills payment. I am the person in charge in the compound we are living in; I am collecting money and go to pay. We pay in cash in Congolese franc. What problems have you experienced with any bill payment method, if any? (NADINE) when I am alone and there is nobody to keep the house while I go to pay; sometimes we are victims of theft. If you haven t tried a different method, do you know if there are any other methods available to you? (NADINE) I know mobile money but it is not yet used for bills payments, I think that starting paying bills through mobile money would be better. I wish that everybody could use it, should it be customers, electricity or water suppliers; it will make things easier. 6

7 (CORINNE) we can make the proposal to the lessor telling him that it is better to start paying bills through mobile money. (FRANCISCA) I think that mobile money is better but it depends on the society. When payment is completed, there are evidences for that payment; would it be possible to also have payment evidence with this mobile money as in cash? This is what will pose problem but if these operators make it possible by working together with suppliers, it will be a good experience. Savings I know that it is not easy, but how many of you are able to set aside money? What methods do you use to save? Do you use informal methods such as keeping money with friends and family, Bwakisa carte, etc? (FRANCISCA), I do have a bank account at CAMEC, I am no longer in informal because it created conflicts and I noticed that tontines are not under the Government supervision so in the event of conflicts related thereto, there is no way to solve the issue. I also save money at home since I am perfectly capable of doing that but in order to avoid theft I save money in a safe place which is CAMEC. Now suppose that there is a war in KASANGULU, I will no longer have access to my money and lose everything while with ProCredit or Western Union for example, anywhere in the world I can still have access to my money. Well, the fact is I don t trust CAMEC enough. (LAETITIA) before I used to save money at home and then when Airtel Money came, I started saving in my phone. Now when get my monthly salary through Airtel money, I first withdraw the money and split it two parts, one half is to be saved in Airtel money and the other I will use. (NADINE) I am engaged in LIKELEMBA. To avoid problems, I preferred being amongst the five first persons to get paid in the arrangement or the fifth since for the two last persons there is always a problem posed. It is difficult since you may have someone who already received his turn and don t want to pay back for others turns. Once I was the eighth and I was very upset but now I decided not to be paid beyond the eighth person; I am now either the fifth or sixth person at least. Apart for tontines, I now prefer saving my money into my M-Pesa account. I do have an account in US dollar and Congolese franc. (CORINNE) as I said before, I share my salary in two part, one is to be used and another to save. I own a bank account with ProCredit at Kinshasa. I subscribe for M-Pesa account and with my card I can now do it because there are withdrawal and deposit shops now. I also do it with CAMEC since there is no problem with it as well. M-Pesa is good because I may need doing purchase, I will just have to put money into my account and once there I can withdraw and make shopping. It helps prevent theft. 7

8 What are your top 3 reasons for saving money (e.g. emergencies, long-term needs, family needs, regular payments, etc...?) (FRANCISCA) I save to plan and anticipate, I can have a problem and this money saved can help to solve this issue. I also save to be qualified for loan because to be granted loan you have to own a bank account and this account must have something in it. If you don t save, how can you ask for a loan then? I also save for my small business. (CORINNE) savings it like guaranty for future, that is why I am saving to plan and anticipate. One day I will have a household to manage apart from my family where I was born and I have to already plan for my future and also note that nobody can control what is to happen tomorrow. (NADINE) I am saving to fill in gaps in the event of deficit in my trade or in the event that my husband travelled, or when I am to welcome visitors or my family-in-law, I can still use that money. Other services used Are there any other services that you use in addition to those discussed so far, such as credit, insurance, etc.? How often do you use these services? Who did you go to for this service? What was the provider for this service? Loans? (FRANCISCA) I have already been granted a loan by CAMEC since there if you own savings account they can grant you a loan of 100$. I knew it during my holidays; as I was doing nothing at home I started a small business. And at the end of June I wrote a letter to CAMEC about loan and I was granted a loan that I paid back every month as agreed and it was so easy to be granted the said loan. (NADINE) I have not yet been granted a loan but I already went to make a deposit for loan payment of my husband; it was at MATADI KIBALA (Kinshasa district) ProCredit Agency. (FRANCISCA) I will try asking loan once at ProCredit. (CORINNE) it is impossible, requirements are not easy. Because to be granted a loan you have first to be a good businessman, you have to know how to manage money since you will have mortgage your valuables and also own a bank account. (LAETITIA) not with loan, I don t like loan because I don t like being a debtor. 8

9 Insurance (CORINNE) no insurance but once I went to subscribe for a training insurance at KASANGULU SONAS (notional company of insurance) agency, it was just 21$ and easy to obtain. (LAETITIA). Insurance is something good but I have never had an idea of subscribing for insurance. What are the reasons why you do not use this service as often as the ones we just discussed? In general, what are the main constraints affecting your use of this service? Pricing (CORINNE). To start my training I will have to get it first but I am not using it because SONAS don t respect its commitment in the event of accident. Thinking of the services that you mentioned, is the pricing transparent enough? Or are there any extraneous fees or unexpected penalties? Has it happened to you that you expected to pay one price, but got charged much more? Does this happen regularly? (FRANCISCA) for transfer agencies prices depend on the amount to transfer. (CORINNE) I am getting information before transferring money. For example how much do I have to pay for sending 10$ and I noticed that the pricing is transparent enough because it is clearly displayed. (LAETITIA) it depends on the amount to transfer. Suppose that you want to transfer 5$ or 1000$, for sure there will not be the same percentage for both. It is affordable, it is no longer the matter of competition between agencies and mobile money providers since agencies started before and these mobile money providers have just launched in the market. Mobile money providers before launching in the market went to transfer agencies to compare pricing and percentage in order to set a kind of balance and be able to attract customers. With Airtel money it starts from 0.1% until now but it depends on the amount you want to send. (NADINE) there is nothing to say, everything is clear as regards pricing; it depends on the amount to transfer. What are the three things, if any, that you would you like to change about the services or the providers that you are currently using? For transfer agency. 9

10 (LAETITIA) for me, the rate is not to be improved for transfer since for the time being it is working; maybe it will change with the passing of time. (NADINE) I think that for transfer there is no problem. (FRANCISCA) Amis Fidèles does not have any problems as far as transfer is concerned but regarding loan, if you ask to be granted a loan they will ask you to give an amount of money to cover risks and that is why we are now going to EFFATA which is a Catholic Savings and Loan Organization. With CAMEC we pay 6% as risk coverage fees but they don t provide us with accurate explanation about that. And we even decided to definitively go to EFFATA and stop dealing with Amis Fidèles for transfer. Also, we are going to start using EFFATA since with CAMEC there are things that we don t understand. For mobile money (NADINE) what I would like to mention is about Vodacom because there is often problem with connection; for example you are in need of credit but the connection is posing problem. For M-Pesa, they should make a very good communication so that people may be attracted and interested in it. (FRANCISCA) They have to communicate, make awareness, sensitize, explain and even organize opened days to help people understand well. (CORINNE) it is first of all a connection matter; one week ago I wanted to recharge credit from my account but there was no connection and I solved the problem after because I had to go to a small shop around the corner. Even if it was solved after but this has an impact on people trust regarding their service; so it is up to them to only improve service quality in order to satisfy us as customers. Then they have to explain people how it works; people must know what are advantages and disadvantages of this service. Thank you so much for your time! 10