Tweet
Armenia's banks have opportunity to expand their customer base in regions
by Gayane Isahakyan
ARMINFO
Saturday, November 22, 16:18
Armenian banks have an opportunity to expand their customer base in
the regions overwhelmingly due to potential customers in peasant
farms, say the results of a public opinion poll conducted by the
Economic Development and Research Center (EDRC) at the request of the
USAID as part of The Finance for Economic Development (FED) project.
Micro, small and medium enterprises (MSME) and peasant farms
throughout Armenia were polled.
According to report recently published as part of the FED, 61.5% of
the polled peasant farms have no bank accounts, 38.5% have bank
accounts, including 68.2% have one account, 22.7% have 2 accounts and
only 9.1% have 3 and more bank accounts.
Nearly all the polled MSME that are legal entities use financial
services: 32.9% use 5 and more financial services, 28.8% - 2 services,
20.5% - 4 services, 11% -3 services and 6.8% use only one financial
service.
As for the polled private businesspersons, only 4.7% of them do not
use financial services, while 28.7% use 2 financial services, 19.1% -
3 services, 17.1% - one service, 8% - 4 services, 5 and more services
are not used by private entrepreneurs.
82.2% of the MSME - legal entities use financial services to pay
taxes, 60.3% make cash withdrawals, 58.9% buy goods and services,
50.7% pay for loans, 49.3% sell goods and services, 45.2% - pay for
communal and telecommunications service, and 13.7% - make salary
payments. 43.9% of the total private businesspersons have bank loans,
39.4% use banks service to pay taxes, 31.9% - to make cash-outs, 21.5%
- to pay for communal and communication services, 19.1% - to buy goods
and services, 8.4% to sell goods and services, while no private
businesspersons use bank services to pay salaries. 66% of the total
polled MSMEs (legal entities and privates) have never taken bank loans
as felt no need in it.
Meanwhile, 46% of the total MSMEs did not taken loans as they had no
such opportunity or habit, another 10.3% of the polled MSMEs say their
partners or employees are against loans, 9.5% complain of complicated
nature of financial services, 8.9% say tariffs and interests on loans
are high and impracticable, while 6.2% do not trust in banks.
The survey revealed that the overwhelming majority of the polled
peasant farms (73.3%) do not need bank loans, 40.3% more farms have
had no opportunity or has no habit to take a loan. 6.8% of them do not
trust in banks, 5% complain of high bank tariffs and commission fees,
2.3% say the financial services are complicate, while 0.3% do not take
loans a their partners or employees are against. The survey results
revealed the weak points of banks when it comes to deposit base in the
regions. Thus, 75.4% of the polled MSMEs say they have free funds or
savings to deposit with banks, 21.5% complain of too low interests on
deposits, 27.7% say they have had no opportunity or habit to deposit
funds, while 58.1% do not need deposits, amid 26.9% do not trust in
banks.
65.5% of the polled peasant farms have no deposits with banks for lack
of free funds or savings, 26% say banks are not reliable, 14.8% do not
need deposits, 3.8% have no opportunity or habit to deposit funds with
banks, and only 1.3% say the interests on deposits are low.
Meanwhile, 38% of peasant farms have debts, 26.5% have banks loans,
11.5% have loans at credit organizations, 6.75% take money from
pawnshops, 4.5% borrowed funds from privates. 69.3% of the peasant
farms having debts took loans in a bank, 30.1% in a credit company,
17.6% from a pawn, and 11.8% borrowed from a private.
Only 58.7% of MSMEs using bank services are satisfied with them, 6.3%
are very much satisfied, 31.9% are not satisfied, with 2.5% of them
are extremely discontented at their cooperation with banks.
From: A. Papazian
by Gayane Isahakyan
ARMINFO
Saturday, November 22, 16:18
Armenian banks have an opportunity to expand their customer base in
the regions overwhelmingly due to potential customers in peasant
farms, say the results of a public opinion poll conducted by the
Economic Development and Research Center (EDRC) at the request of the
USAID as part of The Finance for Economic Development (FED) project.
Micro, small and medium enterprises (MSME) and peasant farms
throughout Armenia were polled.
According to report recently published as part of the FED, 61.5% of
the polled peasant farms have no bank accounts, 38.5% have bank
accounts, including 68.2% have one account, 22.7% have 2 accounts and
only 9.1% have 3 and more bank accounts.
Nearly all the polled MSME that are legal entities use financial
services: 32.9% use 5 and more financial services, 28.8% - 2 services,
20.5% - 4 services, 11% -3 services and 6.8% use only one financial
service.
As for the polled private businesspersons, only 4.7% of them do not
use financial services, while 28.7% use 2 financial services, 19.1% -
3 services, 17.1% - one service, 8% - 4 services, 5 and more services
are not used by private entrepreneurs.
82.2% of the MSME - legal entities use financial services to pay
taxes, 60.3% make cash withdrawals, 58.9% buy goods and services,
50.7% pay for loans, 49.3% sell goods and services, 45.2% - pay for
communal and telecommunications service, and 13.7% - make salary
payments. 43.9% of the total private businesspersons have bank loans,
39.4% use banks service to pay taxes, 31.9% - to make cash-outs, 21.5%
- to pay for communal and communication services, 19.1% - to buy goods
and services, 8.4% to sell goods and services, while no private
businesspersons use bank services to pay salaries. 66% of the total
polled MSMEs (legal entities and privates) have never taken bank loans
as felt no need in it.
Meanwhile, 46% of the total MSMEs did not taken loans as they had no
such opportunity or habit, another 10.3% of the polled MSMEs say their
partners or employees are against loans, 9.5% complain of complicated
nature of financial services, 8.9% say tariffs and interests on loans
are high and impracticable, while 6.2% do not trust in banks.
The survey revealed that the overwhelming majority of the polled
peasant farms (73.3%) do not need bank loans, 40.3% more farms have
had no opportunity or has no habit to take a loan. 6.8% of them do not
trust in banks, 5% complain of high bank tariffs and commission fees,
2.3% say the financial services are complicate, while 0.3% do not take
loans a their partners or employees are against. The survey results
revealed the weak points of banks when it comes to deposit base in the
regions. Thus, 75.4% of the polled MSMEs say they have free funds or
savings to deposit with banks, 21.5% complain of too low interests on
deposits, 27.7% say they have had no opportunity or habit to deposit
funds, while 58.1% do not need deposits, amid 26.9% do not trust in
banks.
65.5% of the polled peasant farms have no deposits with banks for lack
of free funds or savings, 26% say banks are not reliable, 14.8% do not
need deposits, 3.8% have no opportunity or habit to deposit funds with
banks, and only 1.3% say the interests on deposits are low.
Meanwhile, 38% of peasant farms have debts, 26.5% have banks loans,
11.5% have loans at credit organizations, 6.75% take money from
pawnshops, 4.5% borrowed funds from privates. 69.3% of the peasant
farms having debts took loans in a bank, 30.1% in a credit company,
17.6% from a pawn, and 11.8% borrowed from a private.
Only 58.7% of MSMEs using bank services are satisfied with them, 6.3%
are very much satisfied, 31.9% are not satisfied, with 2.5% of them
are extremely discontented at their cooperation with banks.
From: A. Papazian