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]
. Hello. My name is SERGE MUMBU from Target, a market research firm based in Kinshasa. Thank you for taking the time to participate in today’s discussion. First I’d like to tell you a bit about the research we are doing. . The purpose of this research project is to provide an overview of the market for financial services in the DRC, including mobile money. For this study, financial services encompasses payments, domestic and international remittance, insurance, savings and loans. Please consider all of these products when I refer to financial services. . We are interested in how people like you, who make financial decisions in their households, use financial services. We would like to draw on your experience to better understand what financial services are accessible to the Congolese people. . There are no rights and wrong answers, people’s experiences vary. We appreciate your candor and we are keen to hear about your experiences. Our report will not name you or identify you in any way, so please feel free to speak your mind. . And here are a few requests that I’d like to make ensure that our discussions go smoothly and turn into a pleasant experience for all of us: o speak openly and feely but only one person at a time o be as specific as possible with concrete examples from their experience o We will be discussing a range of financial services that may not be familiar to everybody. If you have any questions, or if any of my questions are unclear, please feel free to ask for clarification.
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?
My name is Guylain KAZADI, I am married and I have got 5 children ; 4 boys and one daughter ; I am living here at KIPUSHI town and I am
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
Surveyor Geologist; I am working within Rain Gold Resource, A Mining Multinational whereas I have the position of Exploration Manger
I am Elisée MULUNDA; I am father of 3 children, I work at CMSK, I am working in exploitation as Execute Assistant of Metallurgy.
I am Etienne KABEYA, married and father of 4 children; 3 daughters and one boy, I am a freelance consultant, but for the being I am not unemployed.
My name is KABASU MASILU TUMBA; I am 60 years old; married and father of 4 children; 2 daughters and 2 boys.
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?
(Kabasu) when I get money, I give it to my wife to take care of our children and then I can save the remaining.
(Etienne) I am first of all making sure that foods are bought to make ends meet; then I can pay electricity bills and school fees and after I can see how to some relatives that needs some financial support in the family. This is the way I dealing with my money
(Elisée) When I get money, I first put aside 200$ for monthly food supply and 28000cfc (about 28$) for electricity and water bills. And this is all can do with my money for the month.
(Guylain) I as suffered a lot to get my family budget; I really suffered I a lot in my life and this allows me to understand many things in life; it helps me a lot and now I am complying with my obligations that are foods first, then the rent, bills’ payment, fuel for my car, I also provide financial support to relatives and then I can save the remaining. 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.
(Guylain) regularly, I am making transfer, paying electricity and water bills on a monthly basis.
(Etienne) I am paying usually electricity bills
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
(Elisée) I am paying electricity bills on a monthly basis. I. Services used regularly
Exercise 1 MODERATOR: ASK EACH RESPONDENT TO DESCRIBE A RECENT EXPERIENCE WITH A SERVICE. FOR EXAMPLE, IF A RESPONDENT MENTIONS SENDING/RECEIVING MONEY, ASK THEM:
(Etienne) I recently paid electricity bill at the (SNEL) National Electricity Supplier agency of Kipushi.
(Elisée) I also paid electricity bill.
(Guylain) The last transaction that I performed was money transfer from WATCHA towards Province Oriental to be given to my wife at Kipushi, my two sisters that live at Mbuji Mayi and to my father living at Kinshasa. For my wife, I sparing her sometimes to do some transaction in the town, I am doing it with Airtel money, but for others I transferred money through transfer agency.
(Kabasu) I am making money transfer through M-Pesa in Congolese Franc.
SENDING AND RECEIVING MONEY
Think about the last time that you needed to send money. Could you describe how you did this: where you went, why, what exactly you did?
(Guylain) the last time I made money transfer was from WATCHA to my father and my brother that live at Kinshasa and also to my two sisters at Mbuji Mayi. For my wife I am doing it as I told you with Airtel money to help no move but for others, I am using SOFICOM sometimes since it is a little bit more speed than other agencies.
(Kabasu) I transferred money to my son in Congolese franc through M-Pesa to avoid transport fees since I am accustomed with Vodacom.
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?
(Elisée) for me, people from Kolwezi are sending me money very often to support me. They are using COLOMBE agency. They found that it is better to send money through this agency.
(Kabasu) I am sending money more than I receive. And most of the time I sending money to my sons that are at Kinshasa and Lubumbashi. I am
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
always using M-Pesa to sending them money and it is always in Congolese franc.
(Etienne) I am receiving money because a lot of relatives are financially supporting me very often. As today I receive money through COLOMBE Agency.
How much did you pay for this service?
(Kabasu) When I send money through M-Pesa, they deduct 3% from the amount that I send.
(Guylain) I don’t really know Airtel money prices but I know that with SOFICOM, they have reduced their prices due to competition. So that you just pay 2$ to transfer 100$.
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?
(Kabasu) I have chosen M-Pesa since all people of house are subscribed at Vodacom and it near the place we are living.
(Etienne) I have chosen COLOMBE agency because they are rapide and their timeframe to serve people is not too long for going to withdraw money. I tried through M-Pesa but there were some problems with the network and it discouraged me.
(Guylain) for, I chosen the agency because of the availability of their agencies throughout the country; and also because they nearer to the place where I am living. I like SOFICOM since they have available cash despite whatsoever should be the amount.
(Elisée) COLOMBE agency is good since there is no problem of withdrawal if the money is sent.
Overall, were you satisfied with the service? What were the main reasons for your satisfaction/dissatisfaction?
(Kabasu) The service is provided with a required timeframe.
(Etienne) the network problem often complicates people even agencies themselves especially while giving transfer/sending code through their phone.
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
(Elisée) I am not satisfied due to network problem.
(Guylain) I am not satisfied because even while using mobile money, the network may not function well since this is a structure difficult to deal with. But with SOFICOM, it is about numbers of people that are there and this may lead you to be discouraged. Sometimes you can go for transferring money, a big amount, they will provide this person with safer place but in reality this person is still exposed since people will maintain their eyes on him as if there were something to be gotten from him.
What currency do you normally use to send/receive money?
(Etienne) I am receiving money in USD.
(Elisée) my transactions are also carried out in USD.
(Guylain) I often send money in USD and also in Congolese franc.
(Kabasu) I often send money in Congolese franc.
How often do you send/receive money?
(Kabasu) for me, it is any time they are in need that my sons are asking for money.
(Etienne) it is each every time that I am asked for money.
(Elisée) it is done every end of month.
(Guylain) every end of month but also when there is a need the transaction will be carried out.
(If international) What countries do you send money to/receive money from?
(Elisée) it is for South Africa and this is done in USD and through Western Union since it is international.
(Guylain) I send money to Namibia a couple of months ago and I used money Gram since I do have an account at FIBANK that has an agreement with Money Gram.
(Etienne) I received money from Canada through Western Union since it is an international agency and their service is speed.
Have you ever used a mobile money service to send/receive money? Why/Why not?
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
(Etienne) someone from my family can come and I will give him money so that he may bring to another relative where I am supposed to send to.
(Guylain) Yes, it is important since if the amount of money to transact is big then it should be better to categorize it. For me I am using informal means since suppose that I have got 50000$, this will require many things to be transfer if using SOFICOM, generally, I am asking friends that are living here and that can have contract where I want to send that money to give the money the person I wanted to send to and I am dealing with them here you see. This mean is good for me because there are no fees to be paid but it is just like I was helping a friend for free.
Do you use different methods at different times? What methods? Why do you use each?
(Kabasu) My wife that is at FINCA, I am asking her to make transaction on for me in the event of emergency.
(Guylain) I transfer money through phone in the event of emergency.
What problems have you experienced with each method when trying to send/receive money?
(Etienne) Yes, I experienced a problem once a couple months ago; because there was a network problem and I the staff was not at all friendly with us when we came to complain.
(Others): we have not experience any problems in so far.
Have you ever used a mobile money service to send/receive money? Why/Why not?
(Elisée) No, since I have not yet found my interest in it.
(Guylain) I don’t know personally but I am asking someone to do it for me.
(Kabasu) Yes, I am doing it very often in order to send money to my children.
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
(Kabasu) We are often paying cash in Congolese Franc or in USD when the one in charge requires it.
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
(Etienne) Often, we pay cash.
(Elisée) It is through bank that I am paid more often.
(Guylain) I am also paid through the bank.
Did you pick the provider of this service yourself or was it picked by somebody else? [If provider picked by self]. Why did you choose this particular provider?
(Elisée) for me it is the employer that proposed it since it is safer according to him.
(Guylain) for me also, it is the employer idea because according to him and this is true; that the bank provide more guaranty.
(Kabasu) for me, it is cash that I prefer since it is more rapide.
Would you like to collect your remuneration in any other way? Why/Why not?
(Etienne) Yes, since if payment if done in a different method, cash availability will be there and it would be a good thing.
(Kabasu) Yes, I think I would like to it a try.
(Elisée) For me it is no! Since I do have already my method that is speed.
(Guylain) No problem because in 2011 in a bank, we withdrawn all the money from our accounts because presidential elections were coming soon. But if I had my money in my phone I think that I would feel more in security since I have money saved in a small amount within my SIM card and even if I put the SIM card in a place, nobody would know that I have put all my wealth in this small SIM card. I think that my boss will accept this new way of payment.
(Etienne) We have to know that it would be a little bit complicated but if it is well managed so that we may know where we can make complains in the event of lost, I think people we feel more secure. But I don’t think that all people will accept this method due to network saturation.
(Kabasu) We have also to know that there will be problems such as forgetting numbers and sending money to someone else. Is that person who receives the money will be honest enough to give it back?
What problems have you experienced with the way you receive your wages?
(All) we have not experienced problems in the way we receive wages so far.
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
Have you ever used a mobile money service to receive your salary? Why/Why not?
(All) No, this not used yet in DR Congo
Paying bills
What kind of utility bills do you pay? Do you pay TV fees, electricity, gas or others? How often do you pay your utility bills – every month, every few months? In what currency do you normally pay utility bills?
(Guylain) I am paying electricity and water bills. We pay in Congolese Franc at the Suppliers agencies. But there is a problem; it is as if these Suppliers don’t want to use the technology to make their bookkeeping. While all over the world, everything is computerized.
(Kabasu) we are paying cash in Congolese franc at the end of month.
(Etienne) I am always paying at the end of the current month in CFC.
(Elisée) it is the same for me.
Have you or do you know someone who has tried to pay bills using a different method? What was the reason for using a different method? What was the experience like with this method (positive/negative)?
(All) No, As far as we are concerned we don’t know someone who tried once.
What problems have you experienced with any bill payment method, if any? How often do you experience these types of problems? E.g. Every time, now and then?
(Guylain) The problem that we experienced is that you are normally paying one bill but the next month they will still ask you to pay the same bill as if it has never been paid.
(Etienne) everyone here experienced that same issue: you can pay your bill normally but the next month, they will bring you the same bill to be paid with an additional bill for the current month.
(Elisée) this issue is happening every time here at Kipushi.
(Kabasu) even if such things are happening but we don’t have choice we still have to pay.
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
Have you ever used a mobile money service to pay your bills? Why/Why not?
(Kabasu) No, but it would be a good thing to do it through your phone.
(Etienne) Never, but I think it would be a good thing and then agents from the Supplier will go to pick up their money at the mobile telecom providers directly.
(Guylain) No, I have never done it before, but it would be a good thing. Then they have the network must work well to avoid any other problems.
(Elisée) I have never paid bills using mobile money.
Savings
I know that it is not easy, but how many of you are able to set aside money? What are your top 3 reasons for saving money (e.g. emergencies, long-term needs, family needs, regular payments, etc...?)
(Kabasu) I am saving money for my projects and unexpected expenses that I can have at my place.
(Etienne) I am saving for cover for unexpected expenses and my projects.
(Elisée) Yes, I am saving money for my building that I am carrying out now.
(Guylain) Yes, my field of work led me to think that it is very bad to live without savings. For me, I am putting savings in two categories: what I call Raw Savings that is the fact of setting aside a specific amount of my salary that is for savings only. The second category is the savings in materials i.e. I may buy a car, a house that I can maintain and then sell after.
What methods do you use to save?
(Kabasu) I have chosen the bank TRUST MERCHANT BANK (TMB) since it provides more security and it is far from the pace where I am living. This will discourage me to travel for a long distance just for withdrawing money when I am tempted to do so and my money is saved.
(Etienne) I think to do it in safer bank at Lubumbashi since here we don’t have based bank. Especially that CADECO (Congolese Loan and Savings Organization) is not working well, it even doesn’t longer exist I think.
(Elisée) I am saving using informal contribution called here (KIKULIMBA).
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
(Guylain) a couple years ago I was also in KIKULIMBA but now that banks are there, I more trust banks and I am saving also in materials.
How do you decide which method to use? Do you use different methods for different purposes? What are the advantages/disadvantages of one method of saving money over another?
(Kabasu) Through bank it is better since the bank is far away from the place I am living and this will help me avoid going far every time to spend or withdraw that money.
(Elisée) Using informal contribution is really good thing since you will have big amount in once. You only need to do it with people that are paying their entire contribution in due date to serve one member of the group.
(Guylain) by putting savings at the bank, you can have a percentage added to your money as an interest and then bank will help you manage with your extreme urgency in the sense that it will help you better have control of yourselves when you need to make expenses.
(Etienne) I would prefer informal contribution since I am receiving a lot of money in once and this can help me organize my life. But the disadvantage is that if other persons of the group don’t want to pay in their turn, it will become then difficult.
Have you ever stopped using a service because of a problem you experienced? Can you tell me more about that experience? Would you ever go back to using the service?
(Guylain) Personally, I stopped with informal contribution since I notice that feelings were taking controls of people a lot i.e. if the one you are dealing with in this business has to bury a relative that died; this may disturb the order of being granted money in due time in your turn and what if you have already set projects for that money? But in bank I have never seen a problem so far. Well! The only problem is to go to the bank and been told the there is no cash.
(Etienne) When people don’t comply with their commitment this brings a disorder in this informal contribution.
(Kabasu) for me, I would say that I have never had this kind of problem so far.
(Elisée) I would say the as KABASU said.
If you do not currently have a savings account at a formal institution, have you ever tried to open one? If so, what happened? If not, why not?
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
(Etienne) No, since I have not found banks here at Kipushi.
II. 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? 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?
(Kabasu) No, since it is the problem this is mostly known by Congolese people but I have been granted a micro loan by TMB once. A couple months ago, I was very satisfied because I had nothing and they helped me with money and I worked with them for 2 years.
(Etienne) Insurance doesn’t exist here at Kipushi except for former agents of GECAMINES that used to subscribe to the service in that time I suppose.
(Guylain) I subscribed to insurance for my car but for other things such as health or comprehensive insurance, I am not interested at all since when required it is difficult for them realize their commitment. One thing true is that even if you subscribed for comprehensive insurance, in the event of death they will not recognize their responsibility. III. Pricing
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?
(Kabasu) For the case of M-Pesa, at the start, they were not talking about pricing structure but after they started saying that the service was no longer for free. Considering M-Pesa pricing structure, I think that the amount is changing.
(Etienne) I experienced the same agency different prices. At Kolwezi you will pay 1000cfc (about 1$) for transferring money but when you are doing the same transfer at Sakania it is now 100cfc for the same amount of money.
(Elisée) at the bank, it is fine but with COLOMBE agency it is not fine at all. I mean you can receive 100 000cfc from Kolwezi with 1000cfc as transfer fee but when it is here at Kipushi you have to pay 10 000cfc for the same amount to transfer. Prices are changing depending on the amount and the place of transfer.
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Discussion Guide for Focus Groups with Household Decision-Makers and current users of mobile money February 2013
(Guylain) it is not clear since it seems like it depends on places of transfer.
Do the financial services providers that you use charge flexible prices or is it one flat price for all customers?
(Etienne) prices vary in terms of the places where the agencies are located.
(Elisée) I really don’t know how it is working.
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?
(Etienne) as far as I am concerned, I would ask the State to improve system of banks and money transfer agency in terms of speed and security.
(Elisée) for me, they should start everything from the beginning with current services since there are a lot of problems so far.
(Kabasu) they should put a regulation that all those companies have to comply with.
(Guylain) I would ask the State to well share banks throughout the territory instead of making an effort to go to Lubumbashi to transact using a bank; it is should be better to join these banks in virtual technology, I think this may convince customers that their money are in safe place and also join these banks to mobile money. Thank you so much for your time!
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