BANGLADESH FINANCIAL INCLUSION INSIGHTS SURVEY Technical Report WAVE SIX February 2019 Contents 1. Background Information ........................................................................................................................ 3 2. Sample Design .......................................................................................................................................... 3 a. Sampling frame ..................................................................................................................................... 3 b. Sample allocation and selection ....................................................................................................... 4 c. Sampling weights ................................................................................................................................. 5 3. Questionnaire ........................................................................................................................................... 6 4. Recruitment and Field Staff Training .................................................................................................. 8 5. Fieldwork ................................................................................................................................................... 9 6. Substitution ............................................................................................................................................... 9 7. Data Quality Control Measures ......................................................................................................... 10 a. Pre-field quality control .................................................................................................................... 10 b. In-field quality control ....................................................................................................................... 10 8. Data Processing ...................................................................................................................................... 11 Annex: Survey Questionnaire ..................................................................................................................... 12 2 1. Background Information InterMedia conducted a nationally representative survey in Bangladesh to explore the uptake and usage of digital financial services (DFS) among the adult population (ages 15 and over). This Financial Inclusion Insights (FII) survey is the sixth in a series of surveys InterMedia uses to track the role DFS play in money transfers, payments and savings among various consumer segments. The survey will provide actionable insights for a range of stakeholders involved in the DFS sector. The survey specifically aims to: • Measure adoption and use of DFS among specific target groups (e.g., poor, rural and unbanked); • Evaluate service performance among DFS agents and customers; • Produce consumer insight to support product and service development and delivery; • Identify drivers and barriers to further adoption of DFS; and • Collect data enabling forward projections and insight that will generate market growth. 2. Sample Design a. Sampling frame Bangladesh is divided into seven divisions (Dhaka, Chittagong, Khulna, Rajshahi, Rangpur, Sylhet and Barisal). Each division is comprised of: • Division headquarters (DHQs): These are large towns or metro urban areas, which are the administrative hubs of the division. There is one DHQ in each division. • Other Municipal Centers (OMCs): Small urban towns are commonly referred to as OMCs. • Non-Municipal Centers (NMCs): These are smaller urban towns with some basic facilities such as administrative buildings, paved roads, schools/colleges. They generally have no municipal facilities such as piped water, street lighting or other utility supplies. They serve as the administrative center for the villages which they are supposed to administer. These small towns are referred to as Thanas or NMCs. In Bangladesh, there are a total of 545 Thana/Upazilla, according to the 2011 census report. • Villages (all rural): There are 87,191 villages, according to the 2011 census report. Due to adverse public safety and security issues, three districts in the Chittagong division (Rangamati, Khagrachori, Bandarban) and one district in the Rangpur division (Gaibandha) were excluded from the survey. These four districts consist of 2.75% of the total population. The sampling frame was the list of urban centers (DHQs, OMCs, NMCs) and villages. Tables 1 and 2 show the distribution of the 2018 population projection by division and center type, and rural area. The urban-rural split across divisions is based on the 2018 National Media Study conducted by Kantar Research (Bangladesh). This study was a large-scale nationally representative face-to-face survey with 15,000 people, and provides the most reliable source of information about the urban/rural split across divisions. 3 Table 1. Population distribution by division (absolute numbers) Center Dhaka Chittagong Khulna Rajshahi Sylhet Barisal Rangpur Total Type DHQ 6,243,000 2,139,000 438,000 377,000 434,000 302,000 314,000 10,247,000 OMC 6,364,000 3,572,000 1,581,000 2,709,000 611,000 487,000 1,361,000 16,685,000 NMC 1,519,000 520,000 265,000 139,000 294,000 315,000 256,000 3,308,000 Rural 25,555,000 15,605,000 10,127,000 11,713,000 5,965,000 4,655,000 10,563,000 84,183,000 Total 39,681,000 21,836,000 12,411,000 14,938,000 7,304,000 5,759,000 12,494,000 114,423,000 Source: Projection for 2018 based on 2011 census data Table 2. Population distribution by division (percentages) Center Dhaka Chittagong Khulna Rajshahi Sylhet Barisal Rangpur Type DHQ 15.7% 9.8% 3.5% 2.5% 5.9% 5.2% 2.5% OMC 16.0% 16.4% 12.7% 18.1% 8.4% 8.5% 10.9% NMC 3.8% 2.4% 2.1% 0.9% 4.0% 5.5% 2.0% Rural 64.4% 71.5% 81.6% 78.4% 81.7% 80.8% 84.5% Total 34.7% 19.1% 10.8% 13.1% 6.4% 5.0% 10.9% Source: Projection for 2018 based on 2011 census data b. Sample allocation and selection The target sample size for the 2018 Bangladesh FII survey was 6,000 adults aged 15 and over residing in households. The sample was designed in the same way as the 2017 survey and aimed to produce reliable estimates for the main indicators for the country as a whole, and for urban and rural areas separately. The sample for the 2018 Bangladesh FII survey was a stratified multistage sample, with a stratum corresponding to the urban center or rural area of a division. The sample size was first allocated to divisions in proportion to their 2018 population projection, and then further allocated within the division to urban and rural in proportion to their population. The resulting sample size in each stratum was rounded to a multiple of eight, given that households were to be selected using the random walk methodology with eight interviews per starting point (Table 3). The sample was selected independently in each stratum. In the first stage, all eight DHQs were retained in the sample with certainty since there is only one DHQ per division. OMCs, NMCs and villages were selected as primary sampling units (PSUs) with probability proportional to their population size. The number of PSUs selected in each stratum (Table 4) is the ratio of the total number 4 of interviews allocated to the stratum to the number of interviews per PSU: 24 interviews per OMC and 16 interviews in each NMC and village. In the Dhaka DHQ, the eight largest wards in population size were sampled among the 92 wards that comprise the DHQ. In the second stage, households were selected using the random walk methodology. In the third and final stage, one adult household member was randomly selected in each sampled household using the Kish grid. The selected household member was administered the survey questionnaire. Table 3. Sample allocation Center Dhaka Chittagong Khulna Rajshahi Sylhet Barisal Rangpur Total Type DHQ 328 112 24 24 24 16 16 544 OMC 336 184 80 144 32 24 72 872 NMC 80 24 16 8 16 16 16 176 Rural 1,336 816 528 616 312 248 552 4,408 Total 2,080 1,136 648 792 384 304 656 6,000 Table 4. Number of selected PSUs Center Dhaka Chittagong Khulna Rajshahi Sylhet Barisal Rangpur Total Type DHQ 1 1 1 1 1 1 1 7 OMC 14 8 3 6 1 1 3 36 NMC 5 2 1 1 1 1 1 12 Rural 84 51 33 39 20 16 35 278 Total 104 62 38 47 23 19 40 333 c. Sampling weights The sample for the 2018 FII Bangladesh survey is not self-weighting; therefore, sampling weights were calculated. Weights were based on 2018 population projections by age, urban-rural residence, and gender. The weights were normalized at the national level so the weighted number of cases equals the total sample size. The normalized sampling weights were attached to the data file and used during analysis. 5 3. Questionnaire The survey questionnaire was developed in consultation with the Financial Services for the Poor program at the Bill & Melinda Gates Foundation. It includes the following modules. • Household roster • Sending and receiving money • Demographics • Merchant payment • Know-your-customer documents • Bill payment • Household characteristics • School fee payment • Poverty Probability Index • Payment to the government • Gender • Received payment from government • Financial health • Received wages • Financial literacy • Insurance • Mobile technology • Savings • Financial institutions • Investing • Unified payments interface • Borrowing • Experience with money and banks • Experience • Nonuse and non-registered use of • Proximity to points-of-service mobile money • Literacy The questionnaire was translated into Bengali, and