1. FINCA Bank GEORGIA Customer satisfaction Survey and satisfaction Index (CSI) 2013 1

2. 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 2 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.

3. 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. 3 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. 4 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

5. Respondents Gender and Age 5 From the total interviewed clients 66.1% (314 respondents) were Male and 33.9% (161 respondents) Female.

6. Respondents Loan cycle and product type 6 Loan cycle Product type

7. Loan approval time Q1. How long does it take loan approval time? 7 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.

8. Purpose of FINCA loan Q2. What was purpose of your loan? (What did you use this loan for?) 8 120 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).

9. Loan Amount Q3. was the loan amount enough to achieve a purpose? 9 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.

10. Clients satisfaction with Loan officers’ performance Q4. 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) 10 378 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.

11. Market Assessment Q5. What are your main reasons for choosing to have a loan with FINCA and not different lender (bank/MFI)? 11

12. Loyalty Metrics Q6. 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? 12 Recommend2: If clients will recommend FINCA Bank to others in the Future:

13. Q8. Would you plan to continue using FINCA loans in the future? 13

14. Product or Service improvement Q9. What would you like to see changed or improved about the FINCA services and products? 14

15. Customer Satisfaction Index (CSI) 15 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

16. CSI analysis by FINCA Bank Regions 16 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). RegionsStd. Deviation Tbilisi0.229 Central0.199 East0.245 West0.196 Average CSI (0.778) line

17. CSI analysis by Loan cycle 17 Average CSI (0.778) line Loan Cycle MeanStd. DeviationN 10.78840.19687195 20.77690.22308114 30.74520.2323182 40.76510.2527246 50.79390.2355629 6,7,80.88550.13519 Average0.77810.21698 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).

18. CSI analysis by Product type 18 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).

19. CSI index by Loan approval time 19 Loan Approval Time Mean Std. Deviation N 1 Day 0.7990.2077273 2 Days 0.81330.19663166 3 Days 0.78420.21337135 4 Days 0.78410.2164445 More than 1 week 0.59660.2740714 Do not remember exactly, but lot of time 0.61160.172643 Average CSI (0.778) line

20. CSI analysis by FINCA Bank Georgia Branches 20 Average CSI 0.778

21. THANK YOU! 21