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FINCA Bank GEORGIA Customer satisfaction Survey and satisfaction Index (CSI) 2013

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Customer Satisfaction and Its Cycle

Customers are happy

and satisfied

Customers become

loyal

Share their

satisfaction to others

Increase number of

clients

Company Profit

Improve products and

Service quality

Purpose of the research was to measure

performance in relation to customer

expectations, to discover whether or not

clients are satisfied with the FINCA Bank

services.Quantitative customer satisfaction survey was to

compare trend history as well as:

• Measure overall satisfaction.

• Determine problems at customer touch points.

• Reveal values that are important to customers

when choosing FINCA Bank or its competitors.

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Customer satisfaction survey tool consists of 8 questions, including:

Loan application process evaluation.

Loan disbursement process.

Loan Officers performance.

If FINCA helped clients to achieve business goals.

If clients have recommend FINCA to anyone.

If clients would recommend FINCA to anyone in the Future.

Customer satisfaction survey was telephone based survey. Started on 08.04.2013 and was finalized on

19.06.2013.

Interviews and data entry have conducted by the FINCA Bank Georgia two call center operators. The data was

transferred to and analyzed in SPSS (statistical program) by the Survey Manager.

Survey details and Question structures

4

10

19

10

21

30

1315

10

14 14

26

18 19

13

26

10 10

23

13

18

10

17 17

1013

1715

12 1210 10

Before sampling procedures we excluded Clients at risk – PAR 3 times and total overdue amount more than GEL 5.00. Database of

total active clients was extracted from MIS.

At the first we calculated percent of total clients for each service centers based on total clients number and according to these

results estimated numbers of clients we were planning to interview from each service centers. Primary and reserved clients for

interview were selected randomly. From all Branches we Interviewed at least 10 respondents to get a valid data.

Customer satisfaction survey was conducted in 4 operating regions of FINCA Georgia (Central, West, East and Tbilisi). In total 31

service centers were targeted. Branches with small number of active clients were excluded.

Sampling process

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Respondents Gender and Age

Female, 33.9%

Male, 66.1%

From the total interviewed clients 66.1%

(314 respondents) were Male and

33.9% (161 respondents) Female.

18 - 255%

25 – 35 19%

35 - 5556%

55 - 7018%

70 >3%

Client Age

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Respondents Loan cycle and product type

First Cycle41%

Second Cycle24%

Third Cycle17.7%

Fourth Cycle and more17.3%

Loan cycle

Individual Express Loan53.3%

Individual Micro Loan6.7%

Individual Rural Loan29.5%

Group Rural Loan3.2%

Solidarity Credit Group Loan6.9%

SME0.4%

Product type

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Loan approval time Q1. How long does it take loan approval time?

1 Day; 15.4%

2 Days; 34.9%

3 Days; 28.4%

4 Days; 9.5%

More than 1 week; 2.9%

Do not remember exactly (long time)

0.6%

Refusal to respond; 8.2%

75 Clients (21.2%) loan approval

time was more than 3 days. We

asked them the reason why loan was

not approved within 3 days, only 3

respondents complained that they

got loan late because of FINCA Bank

Georgia.

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Purpose of FINCA loanQ2. What was purpose of your loan? (What did you use this loan for?)

Repair office / Business area

Repay a debt in other bank

pay for Education

Treatment

Home purpose

Buy Machines / equipments for Business

Buy a car

Buy household items

Buy /repair home

Repair a car

Increase Inventory

Buy farm animals / agriculture activities

1.1%

1.3%

1.5%

2.9%

2.9%

3.2%

4.4%

8.4%

8.6%

16.8%

23.6%

25.3%

• 120 Respondents (25.3%)

bought a cow (other farm

Animals) and use loan for

agriculture activities.

• 112 Interviewers (23.6%)

increased inventory for their

Business.

• 80 respondents (16.8%)

repaired a car (most of these

respondents admitted that they

wanted to install natural gas

balloon in car).

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Loan AmountQ3. was the loan amount enough to achieve a purpose?

8.8%

8.8%

56%

26.3%

Not enough (42 Respondents) Satisfactory (42)

Enough (266) Fully enough (125)

From these 42 clients not enough:

2 clients - fifth cycle,

5 clients - fourth cycle,

9 clients - third cycle,

2 clients - second cycle

17 Clients - first cycle clients.

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Clients satisfaction with Loan officers’ performanceQ4. How would you rate your level of satisfaction with your loan officer’s performance? (Possible answers: In 5 score scale, where point 1 is Very Dissatisfied; - 5 Very Satisfied)

1%

20%

79%

More or less Satisfied

Satisfied

Very Satisfied

• 378 respondents (79%) - are very satisfied with loan officers

performance

• 93 Respondents (20%) – Satisfied.

• 4 respondents (1%) – more or less satisfied

They are 3rd and 4th loan cycle clients.

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Market AssessmentQ5. What are your main reasons for choosing to have a loan with FINCA and not different lender (bank/MFI)?

Distance of FINCA is close to my home/work

Less paperwork and documents

Faster loan approval process

Better conditions

Recommended by Others (friends, relatives, finca staff)

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

3.8%

7.4%

8.9%

13.3%

66.5%

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Loyalty MetricsQ6. RECOMMEND1: Have you recommended FINCA to anyone? Q7. RECOMMEND2: If a family member or a friend asked you to recommend a financial services company, how likely would you be to recommend FINCA Georgia?

81.7%

18.1%

0.2%

Recommend1: If client recommended FINCA Bank to anyone

Yes

No

Do not answer

Defini

tely

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men

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men

d

Migh

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ight n

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tely

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Do no

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0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

1.9% 1.5%1.3% 11.4%

83.6%

0.4%

Recommend2: If clients will recommend

FINCA Bank to others in the Future:

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Q8. Would you plan to continue using FINCA loans in the future?

85%

2%

13%

If clients plan to continue using FINCA Bank loans in the future

Yes No

Do not know

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Product or Service improvement Q9. What would you like to see changed or improved about the FINCA services and products?

In the Branch no more queues

Branch office to be clean and convenient

Easy loan application and disbursement process

Improve loan officers service quality

Increase Grace period

disbursed loans amount according to clients demend

Decrease Interest rate or commission

Nothing

0.4%

0.6%

1.5%

1.7%

1.9%

4.1%

39.6%

50.1%

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Customer Satisfaction Index (CSI)

To measure Customer Satisfaction Index (CSI) we’ve done Factor analysis in SPSS based on adjusted Satisfaction

variables (according to FINCA Bank Georgia customer satisfaction survey questionnaire):

• Loan Amount: was the loan amount enough to achieve a purpose?

• Satisfaction rate: How would you rate your level of satisfaction with loan officer’s performance?

• Recommendation: If a family member or a friend asked you to recommend a financial services company, how

likely would you be to recommend FINCA Bank Georgia?

Recommend FINCA to

others in the future – 55%

Enough Loan amount to achieve

a purpose – 55%

Satisfaction rate with loan

officer’s performance - 78%

From these three variables, ‘satisfaction rate with loan officer’s performance’ is primary

variable (78%) for satisfaction index formation, and the others are secondary (55% each).

Customer Satisfaction

Index (CSI)Factor analysis

FINCA Georgia Average SCI is 0.778

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CSI analysis by FINCA Bank Regions

Tbilisi Central East West0.68

0.7

0.72

0.74

0.76

0.78

0.8

0.82

0.789

0.81

0.726

0.778

If review CSI by regions, we will see that average satisfaction index is higher in FINCA

Georgia central region (0.81) compare to other regions, at the same time Std. Deviation is

one of the lowest (0.199). Tbilisi and West regions are above the average line.

East Region is Below CSI average line 0.726 (Std. Deviation 0.245).

Regions Std. Deviation

Tbilisi 0.229

Central 0.199

East 0.245

West 0.196

Average CSI (0.778) line

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CSI analysis by Loan cycle

1st cycle 2nd cycle 3rd cycle 4th cycle 5th cycle 6,7,8 cycle 0.65

0.7

0.75

0.8

0.85

0.9

0.7884

0.7769

0.7452

0.7651

0.7939

0.8855

Average CSI (0.778) line

Loan Cycle

Mean Std. Deviation N

1 0.7884 0.19687 195

2 0.7769 0.22308 114

3 0.7452 0.23231 82

4 0.7651 0.25272 46

5 0.7939 0.23556 29

6,7,8 0.8855 0.1351 9

Average 0.7781 0.21698

According to CSI analysis by Loan cycle, second, third and fourth cycle clients

CSI index is below then average.

First (0.7884) and fifth (0.7939) cycle clients CSI is above then average.

Customer satisfaction index is highest among 6 - 8 cycle clients (0.8855).

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CSI analysis by Product type

Ind. Express Loan

Micro Loan Ind. Agro Loan Solidarity Credit Group Loan

Group Agro Loan SME0

0.2

0.4

0.6

0.8

1

0.798 0.8151

0.75810.6881

0.7251

0.6126

Average CSI line

CSI is 0.8151 for Micro loan clients and 0.798 for individual express

loans. For the Clients with other type of loans CSI is below then the

average line, especially SME loans – 0.6126 and Solidarity credit group

loans (0.6881).

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CSI index by Loan approval time

Loan Approval Time MeanStd.

DeviationN

1 Day 0.799 0.20772 732 Days 0.8133 0.19663 1663 Days 0.7842 0.21337 135

4 Days 0.7841 0.21644 45

More than 1 week 0.5966 0.27407 14Do not remember exactly, but lot of time 0.6116 0.17264 3

1 Day

2 Day

s

3 Day

s

4 Day

s

Mor

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an 1

wee

k

Do no

t rem

embe

r exa

ctly

(lot o

f tim

e)Tot

al0

0.2

0.4

0.6

0.8

1 0.799 0.8133 0.7842 0.7841

0.5966 0.6116

0.7905

Average CSI (0.778) line

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CSI analysis by FINCA Bank Georgia Branches

Marneuli

Group Lending Branch

Khulo

Bolnisi

Khashuri

Rustavi

Senaki

Poti

Kutaisi 1

Chiatura

Tsnori

Akhmeta

Sachkhere

Lilo

Kutaisi 2

Batumi

Ambrolauri

Zestaponi

Samtredia

Kobuleti

Gurjaani

Telavi

Varketili

Chkhorotskhu

Dmanisi

Gori

Zugdidi

Lagodekhi

Didube

Akhaltsikhe

Sagarejo

0.4193

0.5124

0.57120.64

0.6825

0.6855

0.6936

0.7057

0.7251

0.7306

0.7516

0.7633

0.7708

0.7847

0.7945

0.8

0.8127

0.8171

0.8302

0.838

0.8458

0.8465

0.8532

0.8585

0.8666

0.8722

0.873

0.8818

0.9236

0.9388

0.9407

Average CSI 0.778

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THANK YOU!