CUSTOMER EXPERIENCE RESEARCH 2014
Research Department, FINCA Microfinance Bank Limited
Overview
Research Objectives and Methodology
Coding of Quotes
Best Service Quality Standards at Field Level
Customer’s Overall Experience
Key Recommendations and Way Forward
Research Objectives and Methodology
Research Objective
The two pronged objective of this research project
was to
Get customer feedback pertaining to the service quality
standards at the field level
Gauge useful insight regarding customers’ overall experience
pertaining to various touch points/ processes and procedures of
FINCA Microfinance Bank’s products and services
Methodology
Qualitative Research using focus groups and in depth interviews
TARGET RESPONDENTS
Segment One
Segment Two
Segment Three
Segment Four
Borrowers- Clean
Lending
Borrowers- Gold
Backed Lending
Customers Maintaining
Transaction accounts
High Ticket
Depositors
12 Focus Groups were conducted with these segments as they
allowed participants to build on each others views and express
their thoughts and feelings in a friendly manner
In-depth interviews were
conducted with high ticket
depositors to gather
useful insight
Sample Split
Focus Groups (12)
Clean Lending (4)
Branches
Ferozepur
Secured Lending (4)
Depositors maintaining/transaction
accounts (4)
Focus Group
Focus Group
Focus Group (Depositors
(Borrowers- Clean)
(Borrowers-
Maintaining Checking
Secured)
Accounts)
1
Total FGDs
1
Road, Lahore
Sialkot
1
1
1
3
Sahiwal
1
1
1
3
Gujranwala
1
1
1
3
1
1
2
4
4
12
Johar Town,
Lahore
TOTAL
4
Coding of Quotes
All quotations have been coded as per the following criteria:
 The first symbol in the code is the number of the segment (between
1 and 4);
 The second is the branch name (Sialkot-SKT, Ferozepur Road-FP,
Johar Town-JT, Sahiwal- SHW, Gujranwala- GJW);
 The third is the gender of the participants (M—Male, F—Female)
The following is an example of the coding system:
(S1,
Segment 1
FP, M)
Ferozepur
Road
Male
Best Service Quality Standards at Field Level
Customer Care Field Standards
The tentative customer care field Standards were:
1. Courtesy and Warmth
2. Timeliness/Standard TATs
3. Offering the Appropriate/suitable Product
4. Honesty in Dealings
5. Professional Personal Attitude and Appearance
6. Ensure Customer’s Peace of Mind
7. Accuracy of Product Information
Borrowers Perception Regarding Service Quality Standards
 Active borrowers (Clean as well as Gold Backed) perceived turn around time,
honesty in dealings, and respect as most important aspects of customer service
“loan milney mein zyada time nahi lagta ye humare liye bohat zayada zaroori hai
kyun kai aajkal har koi bohut masroof hota hai. Aur phir imaandari bohut zayada
zaroori hai” (S1, SKT, M)
Turnaround time of getting a loan is the most important feature for us because in
today’s world everyone is extremely busy. And after turnaround time Honesty is
extremely important.
“loan milney mein zyada time nahi lagta, ye humare liye bohat important hai, aur
doosra imaandari. zaroorat mein jab koi hota hai tou wo ye nahi itna dekh raha
hota ke ye meray sey kis tarah salook ker rahay hain” (S2, SHW, M)
TAT and honesty are the most important features for us, respect plays minor role when
you’re in need.
Depositors Perception Regarding Service Quality Standards
 Deposit clients maintaining transaction accounts considered honesty and turn
around time as the most important attribute of customer service
“ imaandari aur kaam honay ka time humari liye sab se aham cheezay hain” (S3,
GRW, M)
“Honesty and turnaround time are the most important aspects for us”
 The high ticket depositor perceived turn around time, convenience and personalized
attention & respect as the most important aspects of service
Best Service Quality Standards
Borrowers (Clean)
1- Timeliness/Standard TATs
2- Honesty in Dealings
3- Courtesy and Warmth
Borrowers (Gold)
1-Timeliness/Standard TATs
2- Honesty in Dealings
3- Courtesy and Warmth
Top 3
Standards
Regular Account
Depositor
1- Honesty in Dealings
2 – Courtesy and Warmth
3- Timeliness/Standard TATs
High Ticket Depositors
1- Courtesy and Warmth
2- Timeliness/Standard TATs
3- Ensure Peace of Mind
Ranking of Customer Care Field
Standards
BORROWERS
1. Turnaround Time
2. Honesty/ Meeting Commitments in
providing product information
3. Respect, Courtesy and Warmth
4. Convenience
5. Professional Attitude and
Appearance
DEPOSITORS
1. Convenience and Easy Accessibility
2. Respect, Courtesy and Warmth
3. Turnaround Time
4. Honesty/ Meeting Commitments in
providing product information
5. Professional Personal Attitude and
Appearance
6. Offering the Appropriate/suitable
Product
Customer’s Overall Experience with FINCA MFB
Expectations vs Experience
• Active borrowers, specially clean lending customers were very happy and
surprised with the turnaround time of loan disbursement and service quality
“Loan ussi waqt mil gaya tha, process jo hai wo bohat acha hai, aik dou din tou lag hee
jatay hain, humhe ussi waqt mil gaya” . (S1, FP, M)
We received the loan almost immediately upon applying. It took maybe one or two days at most.
The process could not be faster than it already is.
-“staff bohat acha hai, aisa lag raha tha ke wo humari zarooratain poori kerna cha rahay
thay aur samaj rahay thay humhe kya mushkilatain ho rahin theen” . (S1, SKT, M)
Your staff is really good. They showed genuine interest and offered the guidance we needed to
get all the information
Expectations vs Experience- Cont’d
•
Gold Backed lending customers were also happy but they raised a few concerns
over waiting in the branch for long time for gold valuator and getting irritated by
regular visits of FINCA MFB’s representatives
“jab gold aapke lockeron pai para hota hai tou LO ko chakar nahi laganay chahiye,
na ussay dubara sey logon sey inquiry kerni chahiye hai, log baatein kerthay hain
jab bank walay itnay chakar lagthay hain ke ye log pata nahi default ker rahay hain
ya inn sey business nahi sahi chal raha, humhe insult mehsoos hota hai, baki bank
jaisay Tameer hai, wo nahi ye kerthay, tou phir aap kyoon kerthay hain” . (S2, GJW,
M)
When the loan is secured against gold then LOs should not visit us or inquire about us from
others, people make assumptions about us defaulting or the business not doing well, it is
insulting for us, other banks like Tameer do not do this
“Gold valuator ke liye humhe kafi intazar kerna parha. Aik hee banda hai field mein
tou uski baag dor lagee rehti hai” . (S2, JT, M)
Gold evaluation takes time because that area is understaffed. Gold valuator has to go to
multiple locations and we end up waiting for him to come
Expectations vs Experience- Cont’d
• High Ticket Depositors highlighted that their experience could have been far
better if FINCA MFB offered more Range of facilities like internet banking,
better ATM facility and a vast branch network
“Internet banking shuru kerain, phir FINCA baray banks ke saat compete ker
sakay ga jab usskay paas bhi wo saray features hon gaye. (S3, SKT, M)
Internet banking should be initiated, all the features of a regular bank in FINCA would
make it more appealing for us”
“yahan ka profit rate behtreen hai, commercial banks sey bhi behtar hai, iss liye mein
apne 2 account yahan laya tha aur bhi logon ko refer kiya phir” (S3, GJW, M)
-The profit rate is among the highest in all banks, better than commercial banks as well, this
is why I brought my account here and I referred others here too
• Some depositors also highlighted that the branch staff should contact them in
case there are any signature issues etc. in cheque clearing
Key Drivers in Selecting a Financial
Institution
Borrowers (Clean)
Borrowers (Gold)
1- Turnaround time
2-Convenience and Easy
Accessibility
3- Word of Mouth
1- Trust and Market Reputation
2- Turnaround time
3- Convenience and Easy
Accessibility
4- Word of Mouth
Key
Drivers
Regular Account
Depositor
1 – Trust and Market Reputation
2- Convenience and Easy
Accessibility
3- Branch Network
High Ticket Depositors
1- Trust and Market Reputation
2- Convenience and Easy
Accessibility
3- Range of facilities offered
4- Good Profit Rates
Clients’ Perceptions Regarding Service
Quality
Borrowers
• Had a very good experience because of Convenience and
Good Staff Behavior
• Clients in all the focus groups mentioned that Bank staff
was very friendly, professional and honest and that they
have no issues with their behavior
• “Aap ka amla bohat acha hai ussi waja se hum yahan pai
aathay hain” (S1, SHW, M)
• FINCA staff is very nice and that’s why we come here
• Had a good experience primarily because of respect given
by staff.
Depositors
• “Aap logo ka Staff bohat acha aur cooperative hai, aur
kisi kisam ka masla nahi honay daita”(S3, JT, M)
• Your staff is very good & extremely cooperative and they ensure
our comfort
Account Opening Process
 Account opening procedure is considered simpler than other banks
“Aapka account opening system baaqio sai zyada assan hai, zayada
documents nahi laitay bas NIC wagheira ley laya aur kaam ho gaya tha poora”
(S3, SKT, M)
Your account opening process is simpler than others. We brought basic documentation
such as NIC etc. and we got it done
“Account khulwana asaan hai aur account foran khul jata hai, Bank Al Falah main
account khulwanay main mujhe 8 din lag gaye thai” . (S3, GJW, M)
Account opening process was simple, opened instantly, Bank Al Falah took 8 days
Teller Transaction
Cash Deposit and withdrawal process is fast and simple
Clients (depositor clients in particular) highlighted that there should be another teller or counter
to speed up the process
Staff is well trained, counting skills and processing skills are good
Teller staff should get training on counting notes
“I’ve had no issues while withdrawing cash from your bank. The teller’s a good
person. I don’t think one teller is enough though. I’ve told you that you have a big
client base here so you need at least two tellers here. (S3, SKT, M)
ATM Facility
Unavailability of ATM Service at branches (e.g. Ferozepur Branch and Gujranwala
Branch) was highlighted as a big concern by clients
Miscommunication by the branch staff regarding ATM facility in some branches
The withdrawal limit is considered very less by deposit customers
“They told me that by the end of 2013, Gujranwala would have its ATM machine. This would
mean we won’t have to use 1-link machines anymore. The limit on one time withdrawal of Rs.
10k from a 1 link machine is problematic. We have to insert the card again to withdraw more
money. Also the withdrawal limit on the ATM card should be reconsidered. I can withdraw Rs.
50,000 from Bank Al Falah’s ATM. But since you’re microfinance, it should be at least Rs.
20k- 25K. Also, bank should have its own ATM machine.” (S3, GJW, M)
Loan Disbursement
• Loan process is considered simple and quick
“ Aap sai loan dou sai teen din ke ander ander hee mil gaya tha jis sai
hamain bohut faida hua kyun kai time pe paisay milna bohut zaroori hota
hai.”(S1, FP, M)
I got the loan from you within 2 to 3 days and it was very helpful because I needed
the money urgently and its very important to get money in short timeframe.
• Loan process is easy but paperwork/ signatures are too much
for returning clients
“loan process asaan tha koi as such issue nahi huwa, bas ye hai ke kuch
paperwork aur sign kam ho jana chahiye hai khaas tor pai un clients ke jo
pehley sey loan ley chukay hon” .”(S2, SKT, M)
Loan application process is simple, but there is too much paper work and
signatures. Applying and processing time is as fast as it can be, we are happy with
it, it can be made faster if returning clients don’t have to go through as much
paperwork as new ones. So, the process for repeat clients should be made
simpler as you already have our documents.
Loan Disbursement- Cont’d
• Borrowers did not completely understand the terms and conditions on which
they had to sign and they felt that they are signing on too many documents
“Hamain moti moti condition ka tou pata hota hai jaisay loan amount ho gayi, karza
wapis karnay ki raqam aur tareekh wagera. Magar kyun kai hum jaldi main hotay
hain is liye hum sai jo pachaas documents pai sign karwatay hain unka nahi pata
hota” (S1, GJW, M)
We know about the key terms and conditions e.g. the loan amount, repayment date and
amount etc. But since we are in a hurry we have no idea about the rest of the 50 plus
documents that we sign.
• They also highlighted that Infact our name and other information is not
written on those documents and we are signing blank documents which
makes us feel uneasy
“TAT ka unnon ney bilkul sahi bataiya magar hidden charges ka humay nahi
pata tha, Rs.50,000 loan pai mujhe Rs.2,500 deina para innhi hidden charges
mein cheque book, documents wagheira” (S1, SHW, M)
There was no miscommitment about turnaround time, we knew all the terms and
conditions, but there was hidden fees that we weren’t told about for example when I
got Rs.50,000 loan almost Rs.2,500 was deducted for cheque book, documentation
and processing fees.
Complaint Lodgment/ Hotline Mechanism
Most of the clients are unaware of FINCA’s complaint lodgment/ hotline system
Staff has not communicated clients about this system.
Although clients highlighted that we don’t have anything to complain, but
whenever we do we can ask the branch staff.
“I don’t know about FINCA’s complaint hotline’s number or anything related to
it. No one told me about this either. I don’t have anything to complain now but
whenever I do, I can ask them” (S3, JT, M)
Other Suggestions by Clients
Employee Retention
• “meinay notice kiya tha ke yahan sey kafi employees chor ke aur banks mein kaam ker
rahay hain, ye cheez aapki company ki image kharaab kerti hai” (S4, SKT, M)
• “Noticed a sizeable turnover of employees, this damages the reputation of the bank, noticed
them at other banks, FINCA should take care of them to prevent this”
Combine Loan Disbursement and Account Opening Form
• “asaan tareee hai apply kerna aur account kol na, form combine ho jain tou uss sey bhi
zyada asaan ho jaiy ga (S1, SHW, M)
• “Applying for a loan and opening the account did not take long. Account opening form should
be combined with the loan process so as to expedite the process”
Other Suggestions by Clients
Increase Loan Amount
• “humay sahi guide kiya gaya tha iss sey sahi product leina asaan ho jata hai mager loan
amount abhi bhi kum hai” (S1, SKT, M)
• FINCA representative understood our needs and explained the different products to us very well,
but loan amounts should be increased.
Do not ask for too much Personal Information
• “information wo leini chahiye hai jo relevant ho business sey ya phir loan holder sey,
bachon ka naam shaam poochna aur sisters ki information leina humay acha nahi lagta”
(S2, SHW, M)
• There is too much personal information required in the documents that does not relate to the
business or person applying for the loan. For example, information asked about my children, my
sisters and brothers their names location etc. should not be collected.
Key Recommendations and Way Forward
Strengths of FINCA Microfinance Bank
• Turnaround Time
• Clients are very happy with Turnaround time of
loan disbursement and account opening
• Processes
• Clients consider that the process of availing a
loan and account opening are simpler than
any other banks
• Clients consider the process of getting a
cheque book simpler as well however they
feel names should be printed on them so that
that are widely acceptable by other parties
• Service Quality
• Clients feel that the staff is very courteous and
helpful. Good customer service by FINCA
MFB’s representatives was highlighted as one
of the major reason of client satisfaction
Weaknesses of FINCA Microfinance Bank
•
Loan Amount is very Less
-The loan amount of PKR 150,000 is very less and
its not enough to meet our business needs
•
Limited Banking Facilities & Branch Network
- Internet banking should be introduced
- Unavailability of ATM machines in many branches
is a concern
•
Interest Rate is high
- Clients highlighted that interest rate should be less
Understanding Considerations
Reasons for Consideration
Convenience and Fast
Processing
Well-Mannered
and Trained Staff
FINCA Microfinance Bank
Reasons for Non Consideration
Loan Amount is Less
FINCA Microfinance
Bank
Limited Services for
Deposit Clients
High Interest Rate
Key Findings and Recommendations
Borrowers
- Less Loan Amount
- Absence of Gold valuator
- Less Documentation for Repeat Clients
Regular Depositors
-Limited banking facility
-Limited branch network
-Miscommunication regarding launching
of certain banking facilities
• The Loan amount should be increased
• Gold valuator should be present at the branch and should not make
clients wait
• Customers sign too many documents without knowing what's in those
documents. All conditions should be read to the customers and
documentation should be further decreased in case of repeat clients.
• Home visits and business visits in case of Gold customers should be
decreased
• Introduce Credit Cards
• Bank should ensure that SMS is delivered after installment has been
deposited. In some cases it was highlighted by the clients that they did
not get the message.
• The process of complaint lodgment should be communicated to the
clients at the time of loan disbursement because some clients were not
aware of this process.
• We need to address the gaps in using FINCA MFB ATM facility
• We should make internet banking available for depositors
• FINCA MFB should not misquote anything regarding the launch of any
service/ activity(e.g. ATM facility miscommunication in some branches)
• Cheque books should have names printed on them
• The process of complaint lodgment should be communicated to the
clients at the time of loan disbursement because some clients were not
aware of this process.
Key Findings and Recommendations
High Ticket Depositor
-Limited Banking Facilities
- Not aware of FINCA MFB
• Introduce internet banking, credit card facility and a better ATM service
• Launching an effective marketing campaign catering especially to this
segment
• The process of complaint lodgment should be communicated to the
clients at the time of loan disbursement because some clients were not
aware of this process.
DISCUSSION