Microfinance Practice: [MFP] CGAP Newsflash: What Does Money Management in Cote d'Ivoire Look Like?

CGAP Newsflash: What Does Money Management in Cote d'Ivoire Look Like?

Did you know that 82% of low-income people in Cote d'Ivoire save, but only 28% borrow? This is just one of many rich findings from a survey of 1,000 Ivorians aimed at understanding how these individuals manage their money and what the unmet demand might be for savings, credit, insurance or money transfer products.

Overall, 55% of survey respondents did not have any type of formal account at a financial institution. But data from the survey responses show that not all Ivorians approach money the same way. In fact, six unique segments of clients emerged, covering a wide range of behaviors - from people who use formal accounts and e-wallets to people who refrain from using any kind of formal financial service. These segments make it easier to understand common attitudes towards the use of formal bank accounts, the use of e-wallets, the perception of formal versus informal services, and the overall financial strategies employed by low-income segments in Cote d'Ivoire.

In addition to the quantitative survey, researchers obtained nuance through a series of 20 qualitative interviews. An interview with Daboné, who is 58 and sells fresh produce and peanuts, revealed a great deal about the gaps in the use of financial services. She said that although she rarely needs to send money to relatives in Burkina Faso, when she does, she gives it to her uncle "to take to Western Union, because I have no idea how it works." Even though 59% of money transfer recipients in Cote d'Ivoire would prefer to receive funds through a mobile wallet if they were given the choice, a large percentage of transactions are still entrusted to family members or occur through other informal means. Many senders of money transfers lack the awareness or education to take advantage of formal financial services.

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