23 March 2010 Financial Sector Deepening Trust FinScope 2009.

23 March 2010

Financial Sector Deepening Trust

FinScope 2009

FinScope – scope of survey

• 2006 survey: first nationally representative financial consumer perception survey

• Sample size 4,950

• 2009 survey: regionally as well as nationally representative

• Sample size 7,680

Nationally representative sample

Demographics, Education & Income

Population pyramid: age & gender

Demographicsfemale – male adult population

47.4% 52.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

100%

male female

Demographicsurban – rural population

72.4% 27.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rural Urban

Demographicsurban – rural female / male based on the

national estimates for 2009

7,606,111

8,308,892

3,167,809

3,266,620

0

5,000,000

10,000,000

15,000,000

20,000,000

Rural Urban

Male Female

Highest level of education reached

none, 16%

primary and below, 65%

secondary and below,

17% post secondary, 2%

university, 1%

0%

10%

20%

30%

40%

50%

60%

70%

Source of income  

Respondents with more than one source of income could choose multiple answers

5%

6%

9%

11%

14%

31%

69%

0% 10% 20% 30% 40% 50% 60% 70% 80%

No money

Formal employment

Other

Informal employment

Running own business

Family & friends

Agriculture related

Access Strand

Access Strand 2009 - 2006

Definitions of the detailed Access Strand can be found in the pocket at the back of this brochure

9.1%

2.1%

35.1% 53.7%

12.4%

4.3%

27.3% 56.0%

2006

2009

   FI - Formally Included    SI - Semi Formal

   II - Informally Included    E - Excluded

Access Strand - detailed

Definitions of the detailed Access Strand can be found in the pocket at the back of this brochure

0% 50% 100%

2006

2009

FI - Banks/Insurance FI - Other

SF - SACCOs SF - MFIs

Semi Formal Other Informal

E - Non Monetary E - Totally Unserved

  Access Strand – detailed urban/rural

Definitions of the detailed Access Strand can be found in the pocket at the back of this brochure

0% 50% 100%

Rural

Urban

FI - Banks/Insurance FI - Other

SF - SACCOs SF - MFIs

Semi formal other Informal

E - Non-monetary E - Totally Unserved

Access Strand – detailed urban/rural (absolute numbers)

Definitions of the detailed Access Strand can be found in the pocket at the back of this brochure

0 5,000,000 10,000,000 15,000,000

Rural

Urban

FI - Banks/Insurance FI - OtherSF - SACCOs SF - MFIsSemi formal other InformalE - Non-monetary E - Totally Unserved

Access to finance of income source

0% 20% 40% 60% 80% 100%

Formal employment

Other

Running ownbusiness

Informal employment

Family & friends

Agriculture related

No money

Formal Semi-formal Informal Excluded

Regions with more than 14% of their population formally included

0% 20% 40% 60% 80% 100%

Tanga

Iringa

Kigoma

Ruvuma

Mjini magharibi

Dar Es Salaam

Arusha

Kilimanjaro

Formal Semi-formal Informal Excluded

Regions with 70% or more financially excluded

0% 20% 40% 60% 80% 100%

Mtwara

Singida

Tabora

Dodoma

Lindi

Manyara

Kaskazini Pemba

Formal Semi-formal Informal Excluded

The excluded by age groups 2006 and 2009

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

16 to 34 35 +

Excluded 2009 Excluded 2006

Landscape of access

Transactions

Insurance

Credit

Savings

Banking outreach2006-2009

   Percentage change (reference 2006)

Number of people currently banked in 2006 1,467,815 

Number of people currently banked in 2009 1,951,310 33%

Number of people previously banked in 2006 635,792 

Number of people previously banked in 2009 776,986 22%

Number of people never banked in 2006 19,621,136 

Number of people never banked in 2009 18,262,202 -7%

Total adult population in 2006 20,365,808 

Total adult population in 2009 22,349,432 10%

Movement in adult population who use banks

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Banked Previously banked Never banked Total adult population

2006 2009

Reasons for never applying for a loanMultiple answers possible

Reasons for not having savings and investment products

26%

9%

3%

3%

2%

2%

1%

0% 5% 10% 15% 20% 25% 30%

No money to save or"start up" money

Cost, includingopportunity costs

Knowledge andunderstanding

Physical accessbarriers

Disqualification barriers

Documentation barriers

Trust barrier

Reasons for not having a bank account

75.5%

26.4% 25.8%

6.1% 5.3% 3.9%0.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Economicbarriers

Price barriers Knowledgebarriers

Documentationbarriers

Disqualificationbarriers

Bank servicequality barriers

Trust barriers

Financial literacy 2009

0%

20%

40%

60%

80%

100%

Heard word or phrase and know what it means

Heard word or phrase but don't know what it means

Never heard this word or phrase

Over 70% of the adult population wants to be educated or informed about…

60% 65% 70% 75% 80% 85% 90%

How to be able to save more

How to open a bank account

How to manage your money effectively

How to apply for a loan

Insuring/covering your life

Understanding charges/fees

How to better understand products

Calculate loan amount and repayments

Education and level of financial access are closely correlated

0% 20% 40% 60% 80% 100%

University

Post secondary technical training

Secondary

Post primary technical training

Some secondary

Primary

Some Primary

None

Formal Semi-formal Informal Excluded

Insurance

Not served at all, 91.7%

Formal, 6.4% Informal, 1.9%

Reasons for not having an insurance product

0% 10% 20% 30% 40% 50% 60%

Can't afford it

Don't know about insurance or how it works

Don't know how to find out where to buy it from

Don't know what the term insurance means

Don't know how to go about buying insurance cover

You have never thought about it

You don't see the need for it

SACCOS membership

725,555

344,990

380,565

600,974

440,823Borrowing from a

SACCO

Saving with a SACCO

Exclusively usingSACCO and/or

informal groups

SACCO members

SACCO borrowers &savers who havebank accounts

Informally included

ROSCA:    Rotating Savings & Credit Association   ASCA:       Accumulating Savings & Credit Association

ROSCA, 8.50%

ASCA, 2.50%Supported

ASCA, 0.50%

Savings club, 12.60%

Investment Clubs, 0.80%

Reasons for not belong to any informal savings group or society

26%

21%

16%

16%

10%

4%

4%

0% 5% 10% 15% 20% 25% 30%

You Don’t Have AnyMoney

You Don't KnowAbout Them

You Don't TrustThem

You Don't Want ToJoin Their Activities

A Group RequiresToo Much Time

I Have Not Found AGroup

People In The GroupSteal Your Money

Adult Tanzanians who save with and borrow from friends & family

22%

14%

21%

18%

0%

5%

10%

15%

20%

25%

Borrowing from family & friends Saving with family & friends

2006 2009

Informally served adult Tanzanians who save with and borrow from

friends & family

35%

27%

9%

5%

9%6%

0%

5%

10%

15%

20%

25%

30%

35%

All informally served Borrowing from family &friends

Savings with family &friends

2006 2009

Mobile phones

7,232,1436,188,191

13,420,334

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Do not have own cell phonebut use someone else's

Have own cell phone Total

Mobile phone usage by region

0%

2%

4%

6%

8%

10%

12%

14%

Dar EsSalaam

Shinyanga Tanga Mwanza Kilimanjaro Dodoma Arusha

23 March 2010

Financial Sector Deepening Trust

THANK YOU!