FinScope Consumer Survey Democratic Republic of Congo (DRC) 2014

Results from FinScope Consumer Survey Democratic Republic of Congo (DRC) 2014  

Embargoed until 10h00 26 March 2015    

Johannesburg, 26 March 2015:FinMark Trust released the results of its first FinScope Consumer DRC survey results today. The FinScope Survey, developed by FinMark Trust, is a research tool to assess financial access in a country and to identify the constraints that prevent financial service providers from reaching the financially under- and unserved people.

The FinScope Survey is a nationally representative survey of how individuals source their incomes and how they manage their financial lives. It also provides insight into attitudes and perceptions regarding financial products and services. FinScope DRC involved a range of stakeholders engaging in a comprehensive consultation process, thereby enriching the survey. To date, FinScope Consumer Surveys have been conducted in 20 countries including the DRC.

The study was based on a sample of 5000 adults who are 15 years or older and is representative of the overall level of the Central Bank of Congo’s areas of economic activity and therefore all the figures quoted here are indicative of the areas covered.  

OverviewThe study revealed that 70% of the targeted population have access to a water source in the form of piped water, electricity (25%) and latrines/flush toilet (31%). The overall financial inclusion level is 48% with 12% of the population banked, 32% using formal non-bank products and services and 26% using informal services.

1 in 5 adults in surveyed areas are dependent on someone else for money. About 1 in 3 adults of the population rely on farming and have a median income of less than US$1 per day with limited knowledge and resources. The majority of households involved in farming (82%) sell at least some of their produce. The major farming problems experienced relate to lack of agricultural tools,  inputs and the lack of knowledge on the types of crops and vegetables  to grow.

The main reasons for financial exclusion are development and infrastructure constraints, limited income and pressing livelihood priorities. Further, main contributors to exclusion relate to lack of awareness of financial products particularly insurance and mobile money. Affordability of financial products and services and limited user base for financial services providers to justify roll-out of point-of-sale infrastructure also contribute to financial exclusion.

Financial inclusionThe DRC has an overall financial inclusion level of 48%. Remittance transfers are the main drivers of financial inclusion via formal local and international agencies at 53%. 52% of the targeted population do not use financial products and services to manage their finances. They save by keeping their money at home, and rely on family and friends for borrowing.

A combination of products and services are used to meet financial needs, for example an individual could have a bank account and belong to a burial society. Only 3% of the targeted adult population rely exclusively on banking services while another 3% use as a combination of bank and non-bank and informal mechanisms to manage their financial needs.

This suggests that their needs are not fully met by one sector alone. While 18% of the adult population rely on formal mechanisms such as remittance transfers, 12% rely on informal mechanisms, for example savings with Likelemba. The study shows that the level of financial inclusion is higher among males (52%) than females (44%) and among formal sector employees (77%) compared to those without money (18% and who mainly rely on farming (35%).

Banking is largely driven by transactional and savings products with the banked population for the surveyed areas at 12%. Those who opened a bank account mainly do so to keep money safe from theft (73%), they have trust in banks (60%) and they deposit salaries in to bank accounts (55%). Majority of the population are not banked (88%).

The main reasons for the high level of unbanked population is the lack of awareness of banks (48%), not having enough money for a bank account (30%) and irregular income (23%). 8% of the targeted population  indicated that banks are too far away.

SavingsCongolese are more likely to save (55%) than to borrow money (8%) despite low levels of income.  Of those who save, 81% do so to have money when needed, 41% save for medical expenses while 41% save for other emergencies.  Of those who save, 28% keep all their savings at home and do not use formal and informal savings products and mechanisms. Some use informal mechanisms to save (17%) such as Likelemba and might also save at home but do not have any formal savings products. Only 7% of those surveyed do so using products from a commercial bank.45% of adults do not save, of which 57% have no money left after living expenses, while 54% have no income in order to save.

Credit and borrowing92% of the adults in the surveyed areas claimed that they did not borrow or take goods on credit in the past 12 months prior to the survey.  Of those who do not borrow, 31% do not want to incur debt, while 10% claimed that they do not need it.  The percentage of those who rely on family and friends to borrow is at 4.5% while 3% rely on informal mechanisms such as Banque Lambert.  Of those who borrow (8%), 31% do so for medical expenses while 26% borrow for housing purposes.        

Insurance99% of the adults do not have any kind of financial products covering risk.  Insurance cover is low with reliance on savings or family when difficulties take place. Significant household risks cited by adult Congolese are death, illness and cutting back on medical spending feature highly as a response to financial difficulties. The main barriers to the uptake of insurance are that value of assets are too low to insure, lack of affordability and not understanding how insurance works.  

Remittances34% of Congolese remit (send or receive money) to or from family members, parents and children on a monthly basis and 25% remit via formal channels.  

Mobile money57% of the adults use cellphones.  Although 35% of the targeted population know about mobile money, only 4% use it. 96% of the targeted population do not use mobile money services as they are not aware of mobile money and do not have enough information and interest in it.    

FinScopeFinScope was launched in 2002 by the FinMark Trust (www.finmark.org.za). Its purpose is to establish credible benchmarks on the use of, and access to, financial services in South Africa.  It is designed to highlight opportunities for innovation in products and delivery. The FinScope survey is a comprehensive and national representative study on financial inclusion, looking at how people source their income and manage their financial lives. It has been implemented in 20 countries (12 in SADC, 5 non-SADC Africa and 3 in Asia).  

Editorial contact:  FinMark Trust, Nitha Ramnath (Ms),  Communication Manager

Tel:  011 315-9197 / 0829214769Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

About FinMark TrustFinMark Trust, an independent trust based in Johannesburg, South Africa, was established in 2002, and is funded primarily by UKaid from the Department for International Development (DFID) through its Southern Africa office.  FinMark Trust’s purpose is ‘Making financial markets work for the poor, by promoting financial inclusion and regional financial integration’. FinMark Trust does this by conducting research to identify the systemic constraints that prevent financial markets from reaching out to these consumers and by advocating for change on the basis of research findings. Please visit www.finmark.org.za