what consumers want
TRANSCRIPT
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What Consumers WantKey learnings across the continentFindings from the baseline survey on the usage of rural post offices for remittances (11 African countries investigated)
March 2015
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1What do consumers want?
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Extract from immersionsSenegalese respondent
3
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What consumers want – in short
4
01
Get the money
02
Get it fast
03
Get it in full
Availability of a payoutoutlet
Proximity and short processing time
Availability of cash at the payoutoutlet
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2What is the nature of remittances in rural Africa?
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Access to finance in rural Africausage of remittances vs. other financial services
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(In %)
MadagascarBenin Burundi Egypt Ethiopia Ghana Kenya Senegal Uganda Zambia Zimbabwe
Remittances
Savings
Mobile money accounts
Paymentproducts
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
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Remittances: The single biggest interaction with finance in rural Africa
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Remittance is by far the most common financial service used overall among the populations surveyed
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The vast majority of remittance transactions in rural Africa are domestic rather than international in nature
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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
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The essential lifeline nature of remittances in rural Africa is obvious
9
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Remittance transactions over the course of a month are less than $100 USD in total
10
US $100-$200
UnderUS $100
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3Where we are vs. consumer expectations
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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
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Total time taken to obtain a remittance is long across the region
13
26mn
28mn
21mn
20mn
15mn
12mn
17mn
11mn26mn
16mn
19mn
15mn
23mn
19mn
22mn
11mn
17mn
09mn
23mn
11mn
18mn
10mn
Benin Ghana Madagascar SenegalBurundi Egypt Ethiopia Uganda Zambia ZimbabweKenya
41mn
26mn28mn
42mn
34mn
42mn
33mn
26mn
34mn
28mn
Operation timeTime to cash out place
54mn
Depart from home
Total transaction time
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Improving the customer experience is not optional
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4What can the post office do?
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What are post offices visited for?
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Benin Ghana Zambia Kenya Egypt Uganda
Remittances 86 84 77 69 52 48 29 24 20 15 8
Rem
itta
nces
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 - - - - - - - - -
Oth
er
serv
ices
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
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Are post offices legitimate? The answer is “Yes”
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The post office is a reliable institution to offer broader financial services to rural populations in Africa, including remittances – domestic or international
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Enabling rural Africa to access a broader range of financial services seems achievable through the postal network in the majority of countries investigated
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Existing behaviourindicates 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
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What else could be offered?
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Savings Mobile money Larger range of services in Eastern Africa, including loans
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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
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5How can financial inclusion be successfully achieved?
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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 success1. Cheaper fees2. 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
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open for discussion