What consumers want
•Download as PPTX, PDF•
0 likes•11,360 views
This document summarizes key findings from a survey of 11 African countries on consumer usage of rural post offices for remittances. The main findings are: 1) Consumers want remittances that are available, fast, and provide full cash payout. However, receiving remittances through post offices currently takes a long time and cash is sometimes unavailable. 2) Remittances are the most common financial service in rural Africa and are mostly domestic rather than international transfers. Transaction amounts are typically less than $100. 3) Post offices are seen as legitimate and trusted institutions that could enable broader access to financial services like savings accounts and mobile money through their extensive rural networks, if bottlenecks around slow
Recommended
More Related Content
Similar to What consumers want
Similar to What consumers want (20)
More from IFAD International Fund for Agricultural Development
More from IFAD International Fund for Agricultural Development (20)
Recently uploaded
Recently uploaded (20)
What consumers want
- 1. © TNS What Consumers Want Key learnings across the continent Findings from the baseline survey on the usage of rural post offices for remittances (11 African countries investigated) March 2015
- 2. © TNS 1 What do consumers want?
- 3. © TNS Extract from immersions Senegalese respondent 3
- 4. © TNS What consumers want – in short 4 01 Get the money 02 Get it fast 03 Get it in full Availability of a payout outlet Proximity and short processing time Availability of cash at the payout outlet
- 5. © TNS 2 What is the nature of remittances in rural Africa?
- 6. © TNS Access to finance in rural Africa usage of remittances vs. other financial services 6 (In %) MadagascarBenin Burundi Egypt Ethiopia Ghana Kenya Senegal Uganda Zambia Zimbabwe Remittances Savings Mobile money accounts Payment products Retail Loans House and land loans Lower than 50% 50% - 60% 60% - 80% 80% - 100% - 92 74 67 81 5 62 78 50 32 1 81 88 1 89 77 59 87 73 91 27 62 53 82 53 18 86 75 94 88 64 20 87 66 88 32 68 24 58 62 62 14 18 42 50 26 12 62 3 23 49 87 24 44 76 32 73 42 64 6 51 19 40 26 30 42 11 16 7 32 3 8 8 11 2 8 9 2 0
- 7. © TNS Remittances: The single biggest interaction with finance in rural Africa 7 Remittance is by far the most common financial service used overall among the populations surveyed
- 8. © TNS The vast majority of remittance transactions in rural Africa are domestic rather than international in nature 8 Benin Burundi Egypt Ghana Kenya Madagascar Uganda Zambia Zimbabwe Ethiopia Senegal 84 1693 791 9 94 697 380 20 81 1997 398 2 77 23 69 31 From abroad Domestic
- 9. © TNS The essential lifeline nature of remittances in rural Africa is obvious 9
- 10. © TNS Remittance transactions over the course of a month are less than $100 USD in total 10 US $100- $200 Under US $100
- 11. © TNS 3 Where we are vs. consumer expectations
- 12. © TNS What is the receiving experience like? 12 Accessibility issues Long and time- consuming proc Reliability issues What Consumers Want Where we are 01 Get the money 02 Get it fast 03 Get it in full
- 13. © TNS Total time taken to obtain a remittance is long across the region 13 26mn 28mn 21mn 20mn 15mn 12mn 17mn 11mn 26mn 16mn 19mn 15mn 23mn 19mn 22mn 11mn 17mn 09mn 23mn 11mn 18mn 10mn Benin Ghana Madagascar SenegalBurundi Egypt Ethiopia Uganda Zambia ZimbabweKenya 41mn 26mn 28mn 42mn 34mn 42mn 33mn 26mn 34mn 28mn Operation time Time to cash out place 54mn Depart from home Total transaction time
- 14. © TNS Improving the customer experience is not optional 14
- 15. © TNS 4 What can the post office do?
- 16. © TNS What are post offices visited for? 16 Benin Ghana Zambia Kenya Egypt Uganda Remittances 86 84 77 69 52 48 29 24 20 15 8 Remittances Receive money from abroad 53 5 38 - 2 5 4 4 4 - 1 Receive money (domestic) 22 33 26 45 29 26 23 10 11 8 5 Send money (domestic) 9 43 13 24 21 17 2 10 4 7 2 Send money abroad 2 4 - - - - - - - - - Otherservices Mobile money facilities - - - - 37 5 21 12 - - 24 Current account 1 1 - - 8 1 - - 3 - - Savings accounts 7 12 - - 3 6 37 11 57 - - Other (inc. ATM card) 7 3 22 26 1 37 13 49 19 80 63 Columns sorted left to right, highest to lowest total remittance proportion Senegal Madagascar Zimbabwe EthiopiaBurundi Priority markets Most used form of remittance transaction
- 17. © TNS Are post offices legitimate? The answer is “Yes” 17 The post office is a reliable institution to offer broader financial services to rural populations in Africa, including remittances – domestic or international
- 18. © TNS Enabling rural Africa to access a broader range of financial services seems achievable through the postal network in the majority of countries investigated 18 Existing behaviour indicates appetite Preference for formal finance arrangements Post office footprint supports access Convenience of local finance is appealing Existing post office services are appreciated Many pledge to use more services Infrastructure is already in place New services may be vital for post office survival Established history underpins trust One size solution will not fit all 1 2 3 4 5 6 7 8 9 10
- 19. © TNS What else could be offered? 19 Savings Mobile money Larger range of services in Eastern Africa, including loans
- 20. © TNS From a client perspective, bottlenecks do exist 20 Too slow service Cash not available Customer service not efficient enough Burundi The surroundings of the post office is dirty Zambia Not sufficient privacy during transaction Uganda
- 21. © TNS 5 How can financial inclusion be successfully achieved?
- 22. © TNS Postal network SWOT Opportunities Importance of remittances in Africa Technology and mobile opportunities Market research as a support tool to design relevant customer offer, monitor and enhance client satisfaction for sustainable growth Strengths Perceived as a trustworthy institution across the region with an established history Large network within the countries Satisfying levels of enthusiasm towards new services Perceived benefits are key drivers for success 1. Cheaper fees 2. Proximity advantage for many Weaknesses Current bottlenecks need urgent address: Service perceived and experienced as too slow Technical bugs as such network failure (or rather cash unavailability) Lack of marketing, large awareness campaign not run, resulting in low levels of awareness of product range Old equipment premises judged as shabby in some markets Threats Increasing number of competitors on remittance providers across the region Technology if not embraced
- 23. © TNS 23 open for discussion