BANK OF THE REPUBLIC OF BURUNDI BURUNDI NATIONAL FINANCIAL INCLUSION SURVEY August 2012 Burundi National Financial Inclusion Survey TABLE OF CONTENTS Page EXECUTIVE SUMMARY ..................................................................................................................................... 1 1.0 INTRODUCTION ...................................................................................................................................... 7 1.1 Survey Background and Objectives .............................................................................................. 7 1.2 Definition and Measurement of Financial Inclusion ..................................................................... 7 1.3 Structure of the Report ................................................................................................................... 9 2.0 METHODOLOGY ..................................................................................................................................... 9 2.1 Survey Components and Implementation Period ......................................................................... 9 2.2 Demand Side Survey Methodology ............................................................................................... 9 2.3 Focus Group Methodology ........................................................................................................... 12 2.4 Supply Side Survey Methodology ............................................................................................... 13 2.5 Framework for Analysis and Evaluation of the Survey Findings ............................................... 14 3.0 SUPPLY OF FORMAL FINANCIAL SERVICES ................................................................................. 17 3.1 Number and Location of Access Points ...................................................................................... 17 3.2 Supply of Savings Products ......................................................................................................... 20 3.3 Supply of Loan Products .............................................................................................................. 21 3.4 Supply of Payment Means ........................................................................................................... 22 3.5 Supply of Money Transfer Services ............................................................................................ 23 3.6 New Financial Products Development ........................................................................................ 23 3.7 Conclusions with Respect to the Supply of Financial Services ................................................. 24 4.0 ACCESS TO FORMAL FINANCIAL SERVICES ................................................................................ 25 4.1 Knowledge of Financial Services................................................................................................. 25 4.2 Physical Access to Financial Institutions .................................................................................... 28 4.3 Access to an Account ................................................................................................................... 36 4.4 Access to Credit ............................................................................................................................ 40 4.5 Access to Other Financial Instruments ....................................................................................... 42 4.6 Conclusions with Respect to the Access to Financial Services ................................................ 43 5.0 USAGE OF FORMAL FINANCIAL SERVICES ................................................................................... 44 5.1 Use of Means of Payment ............................................................................................................ 44 5.2 Usage of Savings.......................................................................................................................... 45 5.3 Use of Credit ................................................................................................................................. 52 5.4 Use of Money Transfer Services ................................................................................................. 56 5.5 Combined Use of Financial Services .......................................................................................... 57 5.6 Use of Informal Financial Systems .............................................................................................. 57 5.7 Conclusions With Respect to the Usage of Financial Services................................................. 60 Bank of the Republic of Burundi/Développement international Desjardins Page i Burundi National Financial Inclusion Survey 6.0 QUALITY OF FORMAL FINANCIAL SERVICES................................................................................ 61 6.1 Key Quality Indicators .................................................................................................................. 61 6.2 Conclusions with Respect to the Quality of Financial Services................................................. 65 7.0 KEY FINDINGS AND RECOMMENDATIONS..................................................................................... 66 7.1 Global Measurement of Financial Inclusion in Burundi .............................................................. 66 7.2 Global Measurement of Financial Inclusion by Province ........................................................... 68 7.3 Summary of the Key Findings of the Survey .............................................................................. 70 7.4 Recommendations ........................................................................................................................ 72 8.0 CONCLUSION ........................................................................................................................................ 77 Annex A: Format of the Financial Inclusion Survey Questionnaire LIST OF GRAPHS Page Graph 1 – Profile of Financial Inclusion: International Comparison ................................................................. 5 Graph 2 – Knowledge of Banks (n = 3220) ...................................................................................................... 25 Graph 3 – Knowledge of MFIs (n = 3220) ........................................................................................................ 26 Graph 4 – Knowledge of Financial Terms (n = 3220) ..................................................................................... 27 Graph 5 – Knowledge of Financial Services (n = 3220) .................................................................................. 27 Graph 6 – Distance from the Nearest Access Point (n = 3220) ..................................................................... 34 Graph 7 – Means of Transportation Available to Get to the Nearest FI (n = 2817) ...................................... 35 Graph 8 – Travel Time Needed to Get to the Nearest FI (n = 3220) ............................................................. 35 Graph 9 – Percentage of Adult Population with an Account in a Financial Institution (n = 3220) ............... 36 Graph 10 – Percentage of Respondents with an Account in a Financial Institution by Province................. 37 Graph 11 – Use of Third Party’s Account (n = 154) ........................................................................................ 37 Graph 12 – Obstacles to Opening an Account in a Financial Institution (n = 2816) ..................................... 39 Graph 13 – Percentage of Respondents Who Applied for a Loan or an Overdraft Facility in the Past 12 Months (n = 3220) .......................................................................................................................... 40 Graph 14 – Reasons Hindering Application for a Loan (n = 3108) ................................................................ 41 Graph 15 – Percentage of Respondents who Obtained a Loan at a Financial Institution In The Past 12 Months by Province .............................................................................................. 42 Graph 16 – Access to Other Financial Instruments (n = 3220) ...................................................................... 42 Graph 17 – Frequency of Use of Payment Means (n = 3220) ........................................................................ 44 Graph 18 – Percentage of Respondents Saving on a Regular Basis (n = 3220) .......................................... 45 Graph 19 – Location of Savings (n = 2028) ..................................................................................................... 46 Graph 20 – Reasons for Opening an Account in a Financial Institution (n = 404) ........................................ 47 Graph 21 – Frequency of Use of Accounts (n = 404) ...................................................................................... 48 Graph 22 – Types of Accounts Held in Financial Institutions According to the Survey (n = 404) ................ 49 Graph 23 – Use of Credit (n = 94) .................................................................................................................... 53 Graph 24 – Savings in Informal Financial Systems in the Past 12 Months (n = 3220) ................................ 58 Graph 25 – Percentage of Respondents Who Have Received a Loan from an Informal Source in the Past 12 Months 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