report on atm (english v)

8/8/2019 Report on ATM (English v)

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ASSESSMENT OF THE NEED AND RESISTANCE ABOUT THE USE OFAUTOMATED TELLER MACHINES AT BPR

P RESENTED TO : BANQUE P OPULAIRE DU RWANDA

CEOMr. Ben KALKMAN

ON : J UNE 2009


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TABLE OF CONTENTS

Presented to:.............................................................................................................iBanque Populaire du Rwanda..................................................................................ion : ............................................................................................................................iJune 2009..................................................................................................................iTable of contents......................................................................................................iiList of tables and charts...........................................................................................iii

I. Introduction ............................................................................................................. 11. Statement of the problem..................................................................................12. Hypotheses........................................................................................................33. Objectives of the study......................................................................................44. Survey instrument and data collection..............................................................4

II. Results .................................................................................................................. 5II.1 Profile of the respondents ............................................................................... 5

II.1.1 Demographic data .................................................................................... 5II.1.2 Use of electronic card (ATM) .................................................................... 6II.2 Knowledge of ATM cards ................................................................................ 6II.3 What the users of ATM cards are saying of the new technology .................. 10II.4 Management of time and relevance of ATM technology ............................... 11

II.4.1 Time spent in the bank ........................................................................... 11II.4.2 Need of alternative means of bank transactions .................................... 14II.4.3 Promotion of ATM cards ......................................................................... 18

III. Conclusion .......................................................................................................... 20Questionnaire (Kinyarwanda)................................................................................21

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I. Introduction

Quality of service plays a great role in customer satisfaction. Nowadays,technology is more and more used in the production process and has contributeda lot to the improvement of services, thus, increasing customer satisfaction. BPR,as a number of other financial institutions in Rwanda, has introduced the use of the Automated Teller Machine (ATM).

An ATM is a computerized telecommunications device that provides the customersof a financial institution with access to financial transaction in a public spacewithout the need for a human clerk or bank teller. On most modern ATMs, thecustomer is identified by inserting a plastic ATM card with a magnetic stripe or aplastic smartcard with a chip that contains a unique card number and somesecurity information, such as an expiration date. Security is provided by thecustomer entering a PIN (Personal Identification Number). Using an ATM,customers can access their bank account in order to make cash withdrawals or check their account balances.

In business that is market-led, products that give more value to the customer aremore likely to be competitive and ensure customer retention. In a financial serviceprovider, availability of money to customers, whenever and wherever they want it,is of paramount importance. This is a feature that needs much attention in BPR.

1. Statement of the problem

The BPR institution is known all over the country, with more than 500.000customers. The surveys carried out by WOCCU in 15 branches of BPR in 2007,2008 and 2009 showed poor level of satisfaction of customers about the timespent waiting in line. The following chart gives an example of that situation in 15surveyed branches of BPR.

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Chart 1: Customers very satisfied about time spent in waiting line

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

B P P F

N y a m

a t a

G i c u m

b i H u

y e

M u s a n

z e

N g o m

a

N y a g

a t a r e

N y a m

a b u y

e

N y a m

a g a b

e

N y a n

z a

R u b a

v u

R u b e

n g e r a

R u h a

n g o R u s i z

i

R w e z

a m e n

y o

2007

2008

2009

Even though the level of satisfaction varies with period, there are less than 20% of customers saying that they are very satisfied with the time they spend waiting for deposit/withdrawal operations at the bank. The very low percentages for almost allsurveyed branches, particularly in 2009, indicate more and more dissatisfaction inthose of banks, with regard to the quickness of services.

In fact, it is known that cashiers of BPR branches are often overwhelmed byqueues of customers who spend long time waiting to be served. Even in branchesconnected to Globus system, computerization seems not to have greatly improvedthe speed of service.

Generalized use of electronic cards and ATM would be of great advantages for both the bank and the customers. BPR is providing such services free of charge,in some of its branches in Kigali town. These branches are Headquarter, Remeraand Nyamirambo. In addition, different commercial banks have installed ATMs inother parts of Kigali and in some provincial towns. As these ATM are connected tothe same network, the added advantage is that a BPR member can accessservices of whatever ATM.

Though these machines are not yet in all major towns of the country, this type of technology should create huge demands of cards on behalf of customers,particularly urban dwellers. Such demands could urge commercial banks toprovide even more ATMs in all places where it is possible.

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Indeed, 70% of surveyed BPR members in 2007 (WOCCU) said they would bevery likely to use electronic cards had they been available. Many of them,according to the same survey, expressed their willingness to pay transaction fees,up to 500 RWF per operation with the card (WOCCU survey, 2007).

Notwithstanding many advantages of ATM technology, electronic cards are stillunderutilized. One can often notice many customers complaining of slow serviceon long queues in front of cashiers desks, while an ATM is idle just next to thecounters. In fact, figures provided by BPR show that very few customers havereceived an electronic card.

Table 1: Customers of BPR using electronic cards (January 2009)

Branch Card users Totalcustomer

s

Proportion of users (%)

BPK 263 8,089 3.25%Huye 256 13,409 1.91%Remera 148 52,669 0.28%BPPF 120 8,436 1.42%Rwezamenyo 100 23,635 0.42%Gikondo 39 18,484 0.21%Muhima 35 21,841 0.16%Kicukiro 31 15,242 0.20%Kora 22 10,860 0.20%Kacyiru 14 15,772 0.09%

Nyamagabe 13 5,612 0.23%Ndera 4 8,447 0.05%Gicumbi 2 8,017 0.02%Nyagatare 1 11,040 0.01%Rubavu 1 12,406 0.01%Rwamagana 1 7,552 0.01%Nyamata 1 12,775 0.01%Total 1051 254,286 0.41%

Branches of BPK and Huye (former branch of Ngoma) have the highest rate of cards per clients. But percentages are still too low. The evidence is the lowpenetration rate of ATM cards. A number of things may be leading to this situation.Is it because customers are not interested in it? Is there anything about theresistance to change about this new technology? Is it because the bank system isnot encouraging people to use it? These are the questions this research is tryingto answer.

2. Hypotheses

People do not use the electronic cards because they do not know that the bankissues them. But, as some people may know of the existence of the ATM service,

and still not use it, this suggests that this kind of technology is not yet integrated in

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the cultural system (way of thinking and doing things). Finally, the bank is notencouraging people to use that kind of product.

3. Objectives of the study

- Assessment of knowledge of ATM technology ;- Evaluating the needs of BPR customers for multi-banking services- Understanding the obstacles to the use of ATM cards- Proposing strategies of massive use of ATM cards

4. Survey instrument and data collection

4.1. Sampling

Our universe or population is composed of BPR customers. Survey focused ontwo types of branches: four branches where people can find ATM services and

where some customers are using them, namely: BPK, Remera, Nyamirambo,Nyabugogo, and two branches where BPRs ATMs are not yet available, namelyNgoma and Nyamabuye. We took a sample of 50 customers in each of the abovementioned branches, which made up a sample of 300 respondents.

Using the Convenience sampling technique, an interviewer had to choose arespondent that is likely to give relevant information. We know that the earlyusers of new technology or innovation in any area are often people who haveinstruction (literate people), younger people and those who have a certain level of income or other kind of influence in the society. Those traits were considered inchoosing a respondent. However, we also targeted the average members.

4.2. Data collection instrument

For data collection, we set up a questionnaire of closed and open-endedquestions. A pre-test was conducted in order to check question comprehension.After the pre-test, relevant corrections were made to the questionnaire.

SPSS software was used to analyze the data, perform statistical calculations andpresent results in tables and graphs.

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II. Results

The findings were subdivided into four sections. The first is about the profile of therespondents. The second presents the extent to which the interviewees know thetechnology of ATM. After, there is a brief presentation of what the ATM cardsusers are saying about the electronic cards. Finally, there will be a discussion onthe management of time and the relevance of ATM technology.

II.1 Profile of the respondents

II.1.1 Demographic data

Table 2: Age and sex of the respondents

Age group Gender TotalFemale Male NA

20-27 32 47 1 8040.0% 58.8% 1.3% 100.0%

28-32 33 44 7742.9% 57.1% 0.0% 100.0%

33-39 28 39 2 6940.6% 56.5% 2.9% 100.0%

40-68 30 42 2 7440.5% 56.8% 2.7% 100.0%

Total 123 172 5 300

41.0% 57.3% 1.7% 100.0%

The age of respondents ranges from 20 to 68. About three quarters are 39 yearsold or less. In each age group, female and male respondents are represented atan average of 41% and 57%.

Table 3: Occupation and education of respondents

Education Agriculture Business Non-working

Salaried(Privatesector)

Salaried(Publicsector)

Total

Count % Count % Count % Count % Count % Count %Primary incomplete 6 42,9 10 11,6 1 3,2 9 7,4 2 4,3 28 9,3Primary 2 14,3 30 34,9 2 6,5 19 15,7 3 6,5 56 18,7Secondary incomplete 3 21,4 17 19,8 4 12,9 22 18,2 3 6,5 49 16,3Secondary 2 14,3 20 23,3 7 22,6 26 21,5 15 32,6 71 23,7University incomplete 0,0 3 3,5 11 35,5 14 11,6 1 2,2 29 9,7University 1 7,1 6 7,0 5 16,1 29 24,0 21 45,7 63 21,0NA - - - - 1 3,2 2 1,7 1 2,2 4 1,3Total 14 100 86 100 31 100 121 100 46 100 300 100% 4,7% 28,7% 10,3% 40,3% 15,3%

The study targeted people who are likely to use an electronic card. More than ahalf of our respondents have completed at least secondary studies; 30% amongstthem have gone beyond secondary school. They are mostly engaged as salaried

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Table 6: Knowledge of an ATM device/Card by education

EducationHas ever seen an ATM

deviceHas ever seen an ATM

cardNo Yes No Yes

Primary incomplete 64,3% 35,7% 96,4% 3,6%Primary 28,6% 71,4% 80,4% 19,6%Secondary incomplete 22,9% 77,1% 76,1% 23,9%Secondary 22,9% 77,1% 65,2% 34,8%University incomplete 3,6% 96,4% 59,3% 40,7%University 5,5% 94,5% 42,6% 57,4%

Being able to just see an ATM device is linked to the education of a respondent.People notice an ATM device or have occasion to see an electronic card in so far as they have a higher level of education. In fact, over 9 out of 10 customers whohave a certain level of university (versus 77% and less of groups with lower levelof education) have seen an ATM device and more than 40% of the same group(versus 34% and less of the other groups) report to have seen an ATM card.

If people see an electronic card, they may feel need of using it themselves.

Table 7: Felt need of using an electronic card

Education Never felt a needof using a card

Felt a need of using a card

Total

Count % Count % Count %Primary incomplete - - 1 100,0% 1 100Primary 3 30,0% 7 70,0% 10 100Secondary incomplete 3 27,3% 8 72,7% 11 100Secondary 5 22,7% 17 77,3% 22 100University incomplete 3 30,0% 7 70,0% 10 100University 7 23,3% 23 76,7% 30 100Total 21 25% 63 75% 84 100

The reported need of using a card among those who have seen it is equallyrepresented at a rate of around 70%, whatever the level of education of therespondent. However, the sight of an ATM device gives rise to different attitudes.

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Chart 2: Attitude induced by the sight of an ATM

0,0%

5,0%

10,0%

15,0%

20,0%25,0%

30,0%

35,0%

I feel Iwould liketo use it

Newtechnology

I amcuriousabout it

Indifferent Reservedfor other people

I feelmistrustabout it

Respondents report different reactions at the sight of an ATM device. Some feelthey want to use it, others see it only as a new technology that may be reservedfor specific people. The reaction may be just curiosity, indifference or mistrust.

Table 8: Do respondents find an ATM usage complicated?

Education

Do respondents think that

the use of ATM iscomplicated? Total No Yes

Primary incomplete16 9 25

64% 36% 100%

Primary34 20 54

63% 37% 100%

Secondary incomplete30 16 46

65% 35% 100%

Secondary57 11 68

84% 16% 100%

University incomplete

22 4 26

85% 15% 100%

University42 9 51

82% 18% 100%

NA1 1 2

50% 50% 100%Total 202 70 272

Respondents at different levels of educations figure out how to use an ATM buttheir number is still limited. The high level of education influences people to thinkthat using an ATM is easy. More than 84% of interviewees who have secondaryschool level and above declared it would not be difficult to use an ATM; whereas,

65% and less of our respondents who have lower level of education share thesame point of view.

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Table 9: Intension to request an ATM card

Do you intend torequest an ATM card?

Age groupTotal

20-27 28-32 33-39 >39

Very probably 29 27 13 18 8736% 35% 19% 24% 29%

Probably 37 37 35 44 15346% 48% 51% 59% 51%

Unsure 3 4 9 7 234% 5% 13% 9% 8%

Rather improbable 6 4 2 1 138% 5% 3% 1% 4%

Not at all probable 2 1 33% 1% 0% 0% 1%

NA3 4 10 4 21

4% 5% 14% 5% 7%

As shown in Table 9 , respondents in all categories of age group have intention torequest an ATM card; a major part (80%) declare that they probably (51%) or very probably have intention to do so. Younger people show the higher probability of requesting an ATM card, while older people keep some reserve.

Table 10: Intension to request an ATM card by occupation

1 25 13 33 15 877.1% 29.1% 41.9% 27.3% 32.6% 29.0%

8 51 11 61 20 2 15357.1% 59.3% 35.5% 50.4% 43.5% 100% 51.0%

4 4 4 8 3 2328.6% 4.7% 12.9% 6.6% 6.5% 7.7%

3 2 6 2 133.5% 6.5% 5.0% 4.3% 4.3%

1 2 31.2% 1.7% 1.0%

1 2 1 11 6 217.1% 2.3% 3.2% 9.1% 13.0% 7.0%

14 86 31 121 46 2 300100.0% 100.0% 100.0% 100.0% 100.0% 100% 100.0%

Count

%Count%Count%Count%Count%Count%Count%

Intension to requestan electronic card

Very probably

Probably

Unsure

Rather improbable

Not at all probable

Total

Agriculture Business Non-working

Salaried(Privatesector)

Salaried(Publicsector) NA

Occupation

Total

The table above shows that within 31 respondents who are non-working, 41.9% of respondents very probably has the intention to request an electronic card. It alsoshows that 59.3% of business people probably have intention to request anelectronic card. In summary table 11 shows that people in all categories of activities probably have intention to request an electronic card.

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Table 11: Reasons of not requesting an ATM card

Reasons of not requesting an ATM card Frequency PercentLack of information 218 73%I did not feel the need of it 29 10%

I thought it was reserved for some people 10 3%I thought it was very expensive 3 1%My card request was denied 2 1%I have no savings 2 1%Processing request is too long 1 0%It is not reliable 1 0%Bad experience with electronic cards 1 0%

There are miscellaneous reasons for not requesting an e-card. But the mostemerging is the lack of information for most of the respondents (73%) and the lackof need (10%).

However some of the respondents have cards and issued their views about theATM service.

II.3 What the users of ATM cards are saying of the new technology

Table 12: Opinion of the users about the ATM card service

Items Frequency PercentReasons of requesting an ATM card

Faster transaction at an electronic counter 9 69.2%

Draw the money whenever I want 2 15.4%NA 1 0.1%

Total 13 100.0%How secure the user feels with an ATM card

Highly secure 9 69.2%Relatively secure 3 23.1%Insecure 1 7.7%

Total 13 100.0%Use of ATM from other banks with BPR card

No 3 23.1%Yes 10 76.9%

Total 13 100.0%Satisfaction vis--vis ATM card services

Very satisfied 9 69.2%Satisfied 4 30.8%

Total 13 100.0%

The table above shows that the main reason of requesting a card is the access tofaster service at an electronic counter (69.2% of the users). The same proportion(69.2%) finds the ATM highly secure and very satisfying. However, somerespondents find it only relatively secure (23.1%) and not very satisfying (30.8%).This table also shows that 76.9% of the holder of ATM card issued by BPR isusing it to withdraw transaction at other banks. Finally, it can be said 7 out of 10card user in our sample is having a good experience with ATM service, includingmulti-banking feature.

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Users of electronic cards have made some suggestions to improve ATM services.

Chart 3: Suggestions for ATM service improvement

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

ReduceATM

technicalproblems

Variation of ATM

services

Increase of amount

withdrawn

Increasethe number

of ATMdevices

IncreaseATM

reliability

Processingquicklycards

requests

Varied items have been suggested by card users, among which reduction of ATMtechnical problems is the most frequently cited. Subsequently, come theVariation of ATM services, that is increase of functionalities, the Increase of amount withdrawn, the Increase of the number of ATM, the Increase of ATMreliability and the Quick processing of cards requests.

II.4 Management of time and relevance of ATM technology

This section will deal with the way customers support time spent in the bankwaiting for money. If the time is too long, it might be bothering. We will discusswhether long waiting times in front of the cashiers desk are causinginconveniences to such an extent that customers may want alternative ways of accessing their money. Furthermore, we will try to find out if this situation wouldrender an ATM technology necessary and what cards requirements thatcustomers are ready to bear.

II.4.1 Time spent in the bank

Time spent in the bank depends on how often a customer comes to the bank and

how long he waits to be served. This can be showed by the average monthlywithdrawals and the average time spent before cashiers desk.

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Table 13: Monthly withdrawals of the respondents

4 28.6% 2 14.3% 6 42.9% 1 7.1% 14 100%19 22.1% 14 16.3% 28 32.6% 23 26.7% 86 100%14 45.2% 8 25.8% 6 19.4% 1 3.2% 31 100%

37 30.6% 39 32.2% 24 19.8% 18 14.9% 121 100%

15 32.6% 12 26.1% 15 32.6% 4 8.7% 46 100%

90 30.0% 75 25.0% 80 26.7% 47 15.7% 300 100%

OccupationAgricultureBusinessNon-workingSalaried(Private sector)Salaried (Publicsector)

Total

Count % Count % Count % Count % Count %=4

Monthly withdrawalsTotal

The table above shows that 26% of people who do business make more than 4monthly withdrawals whereas 45% of non working withdraws 1 or less than 1 timea month. It shows also that 42.9% of agriculture people withdraw 2 to 4 times a

month. The table indicates that salaried from the private sector withdraw 1 to 2times a month and salaried from public sector withdraw 2 to 4 times a month.

Monthly frequency of withdrawals is linked with the total time spent waiting for abank operation. Respondents were asked the longest waiting time they haveendured, and the answers appear in the table below.

Table 14: Longest time spent waiting in line (in minutes)

Statistics

Q25

107.0408 90.0000 60.00 .00 300.00 60.0000 90.0000 120.0000Mean Median Mode Minimum Maximum 25 50 75

Percentiles

The longest waiting time ranges from 0 to 300 minutes. The most frequentlyreported waiting time is 1 hour (mode: 60 minutes). The average is 107 minutes.For a half of respondents, the longest waiting time ranges from 90 to 300 minutes.

This can cause inconveniences to customers, if they have not enough time to waitand trigger specific reactions.

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Table 15: Reaction to the long waiting time

14 14100.0% 100.0%

7 8 71 868.1% 9.3% 82.6% 100.0%

1 3 27 313.2% 9.7% 87.1% 100.0%

5 10 103 2 1214.1% 8.3% 85.1% 1.7% 100.0%

3 4 39 466.5% 8.7% 84.8% 100.0%

16 25 256 2 3005.3% 8.3% 85.3% .7% 100.0%

Count%Count%Count%Count%Count%

Count%

OccupationAgriculture

Business

Non-working

Salaried (Private sector)

Salaried (Public sector)

Total

NA

Giving up

the bankoperation Waiting

Decided to

request anATM card

Reaction to the long waiting line

Total

When customers find waiting time too long, they mainly wait (85.3%) until they dothe bank operation. There is almost no other reaction. Customers became resilientto long queues, yet in some instances, they can give up a bank transaction.

Table 16: Giving up an operation because of the queue

16 12 2857.1% 42.9% 100.0%

25 31 5644.6% 55.4% 100.0%

24 25 4949.0% 51.0% 100.0%

20 51 71

28.2% 71.8% 100.0%3 26 29

10.3% 89.7% 100.0%18 45 63

28.6% 71.4% 100.0%108 192 300

36.0% 64.0% 100.0%

Count%Count%Count%Count

%Count%Count%Count%

Primary incomplete

Primary

Secondary incomplete

Secondary

University incomplete

University

Education

Total

No Yes

Has ever given up abank operation

because of the queueTotal

As the level of education goes up, people are giving up an operation because of the queue. This was conformed by 89.7% of respondents who have a university

incomplete as their level of education. Even if clients are giving up an operationbecause of the queue, there is a long queue acceptance.

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Table 17: Long queues acceptance

Statistics

Q26

25.8562 20.0000 30.00 1.00 240.00 10.0000 20.0000 30.0000Mean Median Mode Minimum Maximum 25 50 75

Percentiles

A half of respondents will accept to wait on line about 20 minutes and the mostreported time is 30 minutes but when we consider the median, half of respondentswould like to spend only 20 minutes on the queue. This is the best length of time,according to the respondent. But, in reality, a customer often accepts to waitlonger than he would have loved. The following table shows the longest acceptedwaiting time without complaining.

Table 18: Longest accepted waiting time without complaining (minutes)

10 18 14 21 12 14 8935.7% 32.1% 28.6% 29.6% 41.4% 22.2% 29.7%

8 9 10 24 10 21 8528.6% 16.1% 20.4% 33.8% 34.5% 33.3% 28.3%

7 14 14 20 5 20 8125.0% 25.0% 28.6% 28.2% 17.2% 31.7% 27.0%

3 14 8 5 1 5 3610.7% 25.0% 16.3% 7.0% 3.4% 7.9% 12.0%

28 56 49 71 29 63 300100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%


Longest acceptedwaiting time withoutcomplaining

=30

Total

Primaryincomplete Primary

Secondaryincomplete Secondary

Universityincomplete University

Education

Total

According to the table above, the higher the education level the lower the longestaccepted waiting time without complaining. This will not stop the need of morefrequent bank transactions.

II.4.2 Need of alternative means of bank transactions

If the time needed to be served in BPR is not always satisfactory, customer couldneed alternative means of getting some services quicker and more conveniently. Itmay be the need of extra-working hours, the use of ATM cards, to mention but fewexamples.

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Table 19: Need of more frequent bank transactions

53 18 7174.6% 25.4% 100.0%

60 28 8868.2% 31.8% 100.0%

41 31 7256.9% 43.1% 100.0%

26 34 6043.3% 56.7% 100.0%

182 115 29761.3% 38.7% 100.0%


Monthly amountdrawn

=100000

Total

No Yes

Need of more frequentoperations

Total

The need of more frequent bank transactions is related to the monthly amountwithdrawn. Interviewees who draw larger amount of money need more frequentbank transactions; but this is the contrary for those who draw smaller amount of money. This need for a greater amount of transactions is not satisfied because of a number of reasons, such as the waiting time needed to access and make atransaction and the bank working hours to mention but a few.

Table 20: Need of extra-working hours services

7 1 6 1450.0% 7.1% 42.9% 100.0%

17 6 31 10 21 8619.8% 7.0% 36.0% 11.6% 24.4% 100.0%

2 6 9 4 10 316.5% 19.4% 29.0% 12.9% 32.3% 100.0%

15 18 38 17 31 12112.4% 14.9% 31.4% 14.0% 25.6% 100.0%

8 6 19 6 5 4617.4% 13.0% 41.3% 13.0% 10.9% 100.0%

43 36 104 38 74 300

14.3% 12.0% 34.7% 12.7% 24.7% 100.0%

Count%Count%Count%Count%Count%Count

%

OccupationAgriculture

Business

Non-working

Salaried (Privatesector)

Salaried (Publicsector)

Total

Very often Often Sometimes Rarely Never

Need of banks services in extra-working hours

Total

A large number of respondents need bank services in extra-working hours. Someneed them very often (14.3%), often (12%) or sometimes (34.7%). This need ispresent in all groups of occupation.

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Table 21: Monthly withdrawals and the need of a card

5 33.3% 10 66.7% 15 100.0%6 23.1% 20 76.9% 26 100.0%5 21.7% 18 78.3% 23 100.0%5 25.0% 15 75.0% 20 100.0%

21 25.0% 63 75.0% 84 100.0%

Monthlywithdrawals

=4

Total

Count % Count % Count %No Yes

Ever felt a need of ATM cardTotal

Answers of respondents who have seen a card, show that three quarters of themhave felt a need of a card. This percentage does not vary much for allrespondents, no matter how often they do bank transactions, except for interviewees that make one or less monthly cash withdrawal who need it at 66.7%.

The following table show if this need implies the willingness to pay fees for faster services.

Table 22: Willingness to pay fees for faster services

4 4 850.0% 50.0% 100.0%

27 60 8731.0% 69.0% 100.0%23 51 74

31.1% 68.9% 100.0%13 67 80

16.3% 83.8% 100.0%6 40 46

13.0% 87.0% 100.0%73 222 295

24.7% 75.3% 100.0%

Count%Count%Count%Count%Count%Count%

NA

=4

Monthlywithdrawals

Total

No Yes

Willingness of payingfees for faster services

Total

As evidenced by the above table, at least 75.3% of our respondents would willinglypay fees to have faster services. This is very true if a customer makes frequentwithdrawals. Indeed, more than 8 out of 10 respondents who make at least 2monthly withdrawals are ready to pay fees for faster services.

The figures of Table 22 and Table 21 are consistently showing up a greatproportion (of 3/4) which is concerned about fast services and would very surelyrequest cards even though this would involve additional fees.

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Table 23: Other ATM card payment

19 32 30 33 11626.8% 36.4% 41.1% 54.1% 38.7%

22 24 23 13 8231.0% 27.3% 31.5% 21.3% 27.3%

11 11 7 10 4115.5% 12.5% 9.6% 16.4% 13.7%

2 7 6 162.8% 8.0% 8.2% 5.3%

17 11 6 5 4023.9% 12.5% 8.2% 8.2% 13.3%

71 88 73 61 300

100.0% 100.0% 100.0% 100.0% 100.0%

Count%Count%Count%Count%Count%Count

%

Can makepayments withan electronic

cardVery sure

Probably

Unsure

Not probably

Not at all

Total

=100000

Monthly amount drawn

Total

If we consider the cash withdrawals each month, people who withdraw moremoney are more likely to use an electronic card for payments (in supermarkets or other places using POS terminals). Most of the respondents (51.1%) who withdrawat least one million each month are very sure that they would do such paymentsagainst 41.1%, 36.4% and 26.8% of respondents from groups that make smaller amounts of cash withdrawals. If monthly cash withdrawals are linked with theincome of a customer, this suggests that the higher the income, the more likely

someone is ready to use ATM in different kinds of payments. This may be also amatter of education.

Table 24: Other cash payments by education

5 16 12 26 14 40 11617.9% 28.6% 24.5% 36.6% 48.3% 63.5% 38.7%

9 16 17 24 9 7 8232.1% 28.6% 34.7% 33.8% 31.0% 11.1% 27.3%

7 7 8 10 9 4125.0% 12.5% 16.3% 14.1% 14.3% 13.7%

2 3 5 2 2 2 167.1% 5.4% 10.2% 2.8% 6.9% 3.2% 5.3%

5 14 6 7 4 3 4017.9% 25.0% 12.2% 9.9% 13.8% 4.8% 13.3%

28 56 49 71 29 63 300100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Count%Count%

Count%Count%Count%Count%

Can makepayments withan electronic

Very sure

Probably

Unsure

Not probably

Not at all

Total

Primaryincomplete Primary

Secondaryincomplete Secondary

Universityincomplete University

Education

Total

The more respondents have instruction, the more they are sure to use a card for cash payments.

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Table 25: Fees for ATM card service as proposed by respondents

To get a card At each transactionCannot pay (free of charge) 14% 29%Can pay 86% 71%

By transaction (in absolute) - 67.7%By transaction (proportional) - 29.3%

Reasonable transaction fees (Rfw)Purchasing

feesBy Transaction (in absolute)

(67.7%)By transaction (% of

amount drawn)(29.3%)

Average 3,540 274 1.7% Median 1,000 100 1.0% Mode 1,000 0 1.0% The above table shows a high percentage of respondents who would willingly pay

fees in order to get a card (86%) or to make a transaction with the card (71%). Itshows also that the average reasonable amount to be paid in order to get a card is3,540 Rwf whereas the most repeated value is 1,000 (Mode=1,000). However,some respondents proposed this price supposing the card would not have anexpiration date. The average reasonable fee per transaction is 274 Rwf, with amedian of 100. This was proposed by 67.7%. Another small group of respondents(29.3%) suggested a proportional payment of 1.7% per transaction instead of flatamount.

Interviewees also suggested the kind of promotion of the ATM card.

II.4.3 Promotion of ATM cards

Table 26: Promotion of the ATM cards via radio

FrequencyValidPercent

NA 88 29%City radio 1 0%Contact FM 22 7%Flash 1 0%Huye 3 1%Ijwi ry'ibyiringiro 1 0%Mariya 9 3%Radio-Rwanda 117 39%Radio 10 5 2%Radio Izuba 1 0%Salus 44 15%Umucyo 8 3%Total 300 100%

Radio Rwanda is the first channel that can be used in order to promote ATM card;this was said by 117 respondents. According to the table there are also other

channels which can be used even if they do not represent a big percentage. Thosechannels are: Radio Salus and Contact FM.

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Apart from the radio, respondents also suggest newspaper as way of promotion.

Table 27: Promotion of the card via newspapers

FrequencyValidPercent

NA 205 68%Imvaho 55 18%Kinyamateka 1 0%New times 5 2%New Vision 2 1%Nouvelle Releve 1 0%Umurabyo 1 0%Umuseso 30 10%Total 300 100%

IMVAHO is the most cited newspaper that can be used to promote ATM cardfollowed with UMUSESO. Respondents also suggest other alternatives that can beused to promote ATM card.

Table 28: Other ways of promotion

Frequency Valid PercentNA 112 37%Billboards 93 31%Leaflets 15 5%Sensitization/demonstration 76 25%SMS 1 0%Visits at home 3 1%Total 300 100%

Among the other ways of promoting the ATM card, billboards is the most said byrespondents. In second place, respondents prefer sensitization campaign anddemonstration.

As far as promotion is concerned, respondents recommended the use of traditional means, specifically Radio Rwanda and Imvaho. Use of billboards andsensitization/demonstration is also the most highlighted means.

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III. Conclusion

The present research had an objective of assessing the knowledge of ATM cardsamong BPR customers, the needs they might have of ATM services andunderstand the obstacles of the use of ATM technology.

The study found out that the knowledge of the ATM technology is poor, eventhough some of them said they have seen an ATM device (77%) or an electroniccard (31.6%). This knowledge is largely related to the level of education of arespondent and somehow to his income. As a matter of consequence, most of therespondents (73%) did not request a card because of lack of information.However, those who had already seen the cards had felt the need to haveit (75%).

Research found that respondents spend much time in the bank, up to 107 minuteswaiting in queue. This survey was conducted at the end of the month whenaffluence is higher. Most of them resign themselves to waiting, but sometimes theygive up a bank operation. However, the longest waiting time they would accept isonly 25 minutes.

With the inconvenience caused by this loss of time, many of the respondents(75%) admitted their willingness to pay fees for faster service and particularly ATMcards. They can accept to pay an average 3,540 RWF to have a card (the median:1000); they can also accept to pay fees per transaction with a card (a flat amountof 274 RWF or 1.7%). Moreover, 75% of respondents said they would use

electronic cards to make payments.

The overall finding is that the current time needed to make a bank operation at thecashiers desks is not satisfactory for customers. In spite of the existence of ATMtechnology, customers resign themselves to waiting in queues, because they donot know of the technology or the bank did not do anything to promote it. There isstrong need of electronic cards even if this would entail reasonable extra-fees.

As suggested, BPR should let their customers know of the existence of electroniccard and tell them, via posters or billboard, radio or newspapers if possible.

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QUESTIONNAIRE (KINYARWANDA )

IBIBAZO BYEREKERANYE NIKORESHWA RYAMAKARITA YA BANKI (VISAHORIZON)

Enquteur:.........................................................Tl.:..................................................

N de lenqut:.................................................

I. Identification1. Branche :

2. Igitsina : M Gore3. Amashuri :

a) Utararangije primaireb) Primairec) Utararangije secondaired) Secondairee) Utararangije Universitf) Universit

4. Imyaka:

5. Akazi:

6. Ukoresha carte lectronique (ikarita ya banki) (Visa Horizon) YegoOya

Banki wayisabiyemo ni iyihe ? :

II. Knowledge of ATM cardsa) Abadakoresha ikaritaIkarita yo kubikuza (carte lectronique) ni ikarita uhabwa na banki. Uyishyira mucyuma cyitwa ATM (Automatic Teller Machine) ugashobora kubikuza amafarangayawe bidasabye ko umukozi wa banki ahaba. Iyo karita inatuma umenyaamafaranga yawe ufite ukanabikuza kuri konti yawe igihe cyose (24/24heures)ahantu hose hari icyuma cya ATM, haba muri banki yawe, haba no mu yandimabanki udafitemo konti. Ibi bibazo rero birarebana nikoreshwa ryiyo karita.

7. Wari wabona icyuma cya ATM cyangwa ikarita yo kubikuza (Visa Horizon)?a) ATM: Yego Oyab) Ikarita: Yego Oya

8. Waba warigeze ukoresha ikarita yo kubikuza?a) Yego Oyab) Niba warayikoresheje ukaba utakiyikoresha, ni kubera iki?................................................................................................................................................................................................................................................................................................................................................................................................

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9. Hari ubwo mbere wigeze wifuza ubundi buryo (nkikarita) bwagufashakubikuza amafaranga byihuse?Yego Oya

10.Iyo ubonye icyuma cya ATM, ugitekereza ho iki?

a) Numva nifuje gukoresha ikaritab) Numva kinteye amatsiko yo kumenya uko gikorac) Ntacyo kiba kimbwiye/ntacyo ngiterekezahod) Numva ntakizere ngifitiyee) Ikindi

11.Utekereza ko gukoresha icyuma cya ATM byaba bikomeye?Yego Oya

12.Wumva ushaka kuzasaba banki ngo iguhe ikarita yo kubikuza?a) Ndayishaka cyaneb) Ndayishakac) Simbizid) Ntayo nshakae) Ntayo nshaka na gatof) Sobanura igisubizo cyawe:

...............................................................................................................................

...............................................................................................................................

13.Ni iki cyaba cyarakubujije kwaka ikarita yo kubikuza?

...............................................................................................................................

...............................................................................................................................

b) Abakoresha amakarita14.Ni iyihe mpamvu ya mbere yatumye waka ikarita?

a) Kubikuza amafaranga byihutab) Gushobora kubikuza no mu yindi banki ntagiramo kontic) Gushobora kubikuza igihe icyo aricyo cyosed) Kumenya amafaranga ari kuri konti binyoroheye

e) Kwishyura nkoresheje ikaritaf) Indi mpamvu:

15. Iyo ukoresha ikarita, wumva umutekano wamafaranga yawe ungana iki ?a) Ni mwinshi cyaneb) Ni mwinshi buhoroc) Simbizid) Nta mutekanoe) Nta mutekano na gato

16.Ujya ubikuza amafaranga no mu yandi ma banki ukoresheje ikarita yawe?a) Yego Oya

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b) Mu yahe mabanki?..............................................................................................................................................................................................................................................................

17.Uzi igihe ikarita yawe igomba kumara?

Yego Oya

18.Uteganya gukoresha ikarita kurushaho mu minsi iri imbere?a) Nzayikoresha kurushahob) Nta kizahindukac) Uburyo nyikoresha buzagabanukad) Sobanura igisubozo cyawe:

...............................................................................................................................

...............................................................................................................................19.Ubona ikarita yawe igufitiye akamaro kangana iki ?

a) Kanini cyaneb) Kanini mu rugeroc) Simbizid) Gakee) Nta na gake

20.Ni iki cyakagombye guhinduka ngo imikoreshereze yamakarita irushehokuba myiza ?..........................................................................................................................................................................................................................................................................................................................................................................................

21.Hari ubwo wigeze ushishikariza abandi gukoresha ikarita?Yego Oya

c) Ku bantu boseIII. Management of time and relevance of ATM technology

22.Ni kangahe ujya kuri banki kubikuza amafaranga?a)..................................Buri munsib)...............

...................Buri cyumweruc)................

...................Buri kwezid)......................................................................................................................Izindi nshuro :....................................................................................................................................................................................................................................................

23.Ubikuza amafaranga angana ate muri rusange buri gihe ubikuje (ushoborakuvuga uti hagati yaya na aya)

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24.Wumva wifuza kuba wabikuza kenshi kurusha uko ubikora ubu?a) Yego Oyab) Niba ari Yego ni iki kibikubuza?

...............................................................................................................................

...............................................................................................................................

25.a) Igihe kirekire wategereje uje kubitsa cyangwa kubikuza amafarangayawe kingana gute?

...............................................................................................................................b) Icyo gihe wabigenjeje ute?.............................................................................................................................................................................................................................................................................................................................................................................................

26.Ni igihe kingana iki wakwihanganira ku murongo utegereje amafaranga?

27.Hari ubwo wari wasanga abantu benshi ku murongo bigatumautabikuza/utabitsa amafaranga kubera kwanga gutinda?a) Yego Oyab) Wabyifashemo ute?

28.Ujya ukenera kubikuza mu gihe banki iba itari gukora (dimanche, le soir, lanuit, cong)?a) Kenshi cyaneb) Kenshic) Rimwe na rimwed) Gake cyanee) Nta narimwe

29.Wumva wakwemera gutanga amafaranga kugirango banki iguhe servicezihuse kurushaho bibaye ngombwa.Yego Oya

30.Wakoresha ikarita wishyura mu marestaura cyangwa muri supermarchs?a) Cyane rwoseb) Si cyanec) Simbizid) Nshobora kutayikoreshae) Sinakoresha na gato

31.Ni mafaranga angahe wakwemera kwishyura mu gihe ukoresha ikarita?Kugirango ubone ikarita:............................Igihe ubikuje ( chaque retrait):.................frw/......................%

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QUESTIONNAIRE (ENGLISH)

I. Identification

1. Location of the bank

2. Gender

3. Education

4. Age:

5. Occupation:

6. User of an electronic card (Visa Horizon)

II. Knowledge of ATM cards

a) For non-usersATM card is an electronic card that allows you to access your account without anybank agent. This kind of card gives you the possibility of withdrawing money or consulting your account 24/24 hours, 7/7 days, wherever an ATM is available.

7. Have you ever used an electronic card?a) Yes Nob) If yes, why are you no longer using it?................................................................................................................................................................................................................................................................................................................................................................................................(If you requested it and are waiting for it, go to question III )8. Have you seen an ATM or a Smart Card (Visa Horizon)?a) ATM: Yes Nonb) Electronic card (Visa Horizon): Yes No

9. Have you ever felt a need to have an electronic card? Yes No

10.When you see an ATM, what is your attitude?

a) I feel I would like to use itb) I am curious about itc) Indifferentd) I feel mistrust about it

11.Do you think the use of card would be complicated for you? Yes No

12.Do you intend to request an electronic card?a) Very probablyb) Probablyc) Unsure

d) Rather improbablee) Not at all probable

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f) Explain your choice:

...............................................................................................................................

...............................................................................................................................

13.What is stopping you from requesting an electronic card now?

...............................................................................................................................

...............................................................................................................................

b) For card users14.What were the principal reasons of your requesting an ATM card?

a) Faster transaction at an electronic counter b) Multibanking servicesc) Draw money whenever I want itd) Checking account balancee) Cash paymentf) Other reason:

15.How secure do you feel your money is with a smart carda) Highly secureb) Relatively securec) Do not knowd) Insecuree) Very insecure

16.Do you use multibanking service? Yes NonIf yes, what are the other banks do you use electronic card with?............................................................................................................................................................................................................................................................

17.Do you know the validity period of your card? Yes Non18.Will your card usage increase, decrease or remain the same in the future?

a) It will increaseb) It will remain the samec) It will decreased) Explain your choice:

...............................................................................................................................

...............................................................................................................................

19.How satisfied are your with the electronic card servicesa) Very satisfiedb) Satisfiedc) Averaged) Dissatisfiede) Very dissatisfied

20.How can electronic card services be improved?..............................................................................................................................

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..............................................................................................................................

..............................................................................................................................

21.Have you recommended others to use an ATM card? Yes Non

c) For all respondentsIII. Management of time and need of ATM technology

22.How often do you make cash withdrawal from your account?a) a dayb) a weekc) a monthd) Other :

23.What is the average amount drawn by operation (range)

24.Would you like to access your account more often than you do now? YesNon If yes, what stops you from doing so?

...............................................................................................................................

...............................................................................................................................

25.How long do you accept easily to wait in line without complaining?

26.a) What is the longest time have you endured in queue?

b) What was your reaction?.............................................................................................................................................................................................................................................................................................................................................................................................

27.Have you ever given up a withdrawal/deposit operation because of thequeue?

a) Yes

b) Nonc) What was the solution you took?

28.How often do you need to access your account beyond the banks workinghours?

a) Very oftenb) Oftenc) Sometimesd) Rarelye) Never

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report on atm (english v)

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