CGAP Survey on Capacity Building Services
Upcoming SlideShare
Loading in...5

CGAP Survey on Capacity Building Services



In the fall of 2012 CGAP undertook a survey to better understand the dynamics of the market – both demand and supply - for capacity building services for financial service providers. More than 400 ...

In the fall of 2012 CGAP undertook a survey to better understand the dynamics of the market – both demand and supply - for capacity building services for financial service providers. More than 400 financial service providers (FSPs), from all regions and institutional types, reported on their demand for and use of capacity building services to build their own human, organizational, and institutional capacity. On the supply side, over 200 capacity building service providers (CBPs) shared their perspectives and challenges. Respondents included included individuals, companies and organizations that offer a range of advisory services, training and skills building, IT services, human resources functions, and market research. The results of the survey are summarized in this presentation



Total Views
Views on SlideShare
Embed Views



7 Embeds 254 126 82 23 9 9 3 2



Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

CGAP Survey on Capacity Building Services CGAP Survey on Capacity Building Services Presentation Transcript

  • Capacity Building Survey ResultsAntonique Koning20 February 2013
  • CGAP Research on Capacity BuildingOnline survey reveals key challengesGoal: Understand challenges related tocapacity building services for financialinclusion • 413 retail financial service providers • 221 capacity building service providersSurvey is part of broader CGAP researchincluding a literature review and expertinterviews. 2
  • Outline• Main characteristics of survey respondents• Demand for capacity building services• Supply of capacity building services• Benefit of capacity building services• Funding of capacity building services• Conclusion 4 View slide
  • SurveyRespondentsWhat are their main characteristics? View slide
  • Breakdown of Survey Respondents Where are survey respondents located?Survey Respondents are Globally Diverse Capacity Building Service Providers, 221 Financial Services Providers, 413 Survey Sub-Saharan Africa 45% respondentsEastern Europe and Central Asia 16% were globally 11% Latin America and Caribbean 17% diverse, but the 11% South Asia 8% 16% largest East Asia and Pacific 6% 18% segment is North America 0 Middle East and North Africa 2% located in SSA. 2% 0% 50% 100% 3
  • Types of Financial Services Providers (FSPs) Largest segment are NBFIs and banks who are more than 6 years old What type of institution are you? 63% of FSPs NBFI 63% surveyed were non- Bank 14% bank financial Cooperative 10% institutions. NGO 5%Payment Provider 4% 77% of FSPs MFI Association 2% surveyed had been Other 2% in operation for more than 6 years. 0% 20% 40% 60% 80% 100% Sample = 413 6
  • What are the main challenges for FSPs?41% of respondents cited improving capacity as main challenge “Improving theWhat is your main challenge? capacity of myImproving the capacity 41% business” was the of my business Identifying new client top challenge for segments 21% FSPs reported Dealing with external 17% across categories factors and most regions. Obtaining Capital 16% Others 5% Only in South Asia 0% 20% 40% 60% 80% 100% did external Sample = 413 factors rank higher. 7
  • Capacity Building Service Providers (CBPs)Largest segment are consulting companies 51% of capacity What type of institution are you? building service Consulting Company 30% providers surveyed Independent Consultant 21% were consulting Association or Network 15% companies or NGO 11% independent Training Institute 7% consultants. Other 7% Funder 6% 71% of CBPs University 3% surveyed had been 0% 20% 40% 60% 80% 100% in operation for Sample = 221 more than 5 years. 8
  • Clients of Capacity Building Service ProvidersMajority of respondents are focused on the financial sector Who are your clients? 75% of the respondents’ clients NBFIs 50% are in the financial sector, as banks or Banks 24% non-bank financial Cooperatives 11% institutions. Individuals 9% Financial sector Payment Providers 3% clients were the largest segment Insurance Companies 2% across all types of 0% 20% 40% 60% 80% 100% institutions. Sample =201 9
  • What are the challenges for CBPs?Globally, keeping up with change is top challenge What is your main challenge? Globally, keeping SSA Global up with the “fast- Keeping up with 46% evolving financial change 52% inclusion space” is Making the economics 43% the main challenge work 40% for CBPs. 51% Finding qualified staff 40% Competition of donor- 33% In Sub-Saharan funded projects 26% Africa, finding Other 16% qualified staff is the 10% most difficult. 0% 100% SSA Sample = 90 Global Sample = 202 10
  • DemandWhat is the demand for capacity building services?
  • Needs of Financial Services Providers FSPs illustrate what kind of capacity building support they need most Risk Management, Strategic Planning and People Risk Management are top needs among FSPs Very Much Needed Somewhat Needed Not Needed management, Risk Management 65% 31% 4% strategic planning Strategic Planning 63% 30% 7% and mid-level People management skills 62% 32% 6% IT skills and management 55% 36% 9% people Product development Customer service 50% 54% 38% 44% 8% 6% management Market research 47% 44% 10% were the top threeSr. management & leadership HR management 42% 42% 47% 49% 11% 9% priorities across Change management 41% 47% 13% all institution Governance 40% 47% 13% types. 0% 20% 40% 60% 80% 100% Sample = 413 12
  • Important Features of Capacity Building ServicesCustomization and local relevance are top features What is most important about Most financial capacity building services? services providers 40% prioritize capacity Customized building services Locally relevant 19% that are customized 15% and locally relevant. High quality 12% Value for money Payment providers Coaching 10% are one exception – Other 3% they prioritize high 0% 50% 100% quality services. Sample = 333 13
  • Change is comingDemand for capacity building services will change in next few years92% of survey respondents expect demandfor capacity building services to changesomewhat or significantly in 3-5 years. • New technology and the need to scale up are driving this change • Improvement in people, governance, processes and systems are required to support this change 14
  • SupplyWhat capacity building services are available?
  • What Capacity Building Services are Available?Strategic planning, governance and product development are most common What capacity building services Strategic planning, does your organization offer? governance and Strategic planning 79% Governance 73% product Product development 70% development are Risk management 69% the most common People management skills 57% Customer service 56% services offered by Market research 47% survey respondents. Sr. management/leadership 46% HR management 40% IT skills and management 35% Change management 31% 0% 20% 40% 60% 80% 100% Sample = 221 16
  • Demand/Supply GapServices offered and demand for services don’t always match Gaps in Supply and Demand CBPs see more Offered Very Much Needed demand and offer services on 73% Governance 40% governance and product development Product 70% than FSPs express a development 54% need for. IT skills and 35% management 55% People management People 57%management skills 62% and IT skills are more needed than 0% 20% 40% 60% 80% currently offered. 17
  • Perceptions of Financial Services Providers Market research is the service that’s most lacking On average, only 15% of FSPs perceive the availability of high-quality capacity building services High quality services available None available Some available Dont know 54% of financial service perceive a lack of high- Market research 17% 54% 21% 7% quality market research Change management 10% 41% 36% 13% services. Risk management 17% 37% 41% 6% Product development 17% 36% 38% 9% Governance 14% 34% 47% 6% To combat the overall lackSr. management/leadership 16% 30% 49% 6% of high-quality services, IT skills and management 18% 30% 46% 6% FSPs suggest increasing Strategic planning 16% 29% 49% 5% local research capacity and Customer service 16% 28% 48% 9% offering more opportunities People management skills 16% 23% 56% 5% for peer exchange. HR management 18% 17% 62% 4% Sample = 362 18
  • BenefitsMaking the case for capacity building services
  • Value for MoneyAre capacity building services worth the cost?85% of FSP respondents said capacitybuilding services are worth the cost. • Larger FSPs find less value than smaller entities; • FSPs in ECA and South Asia find less value than other regionsBut, only half of FSP respondents actuallymeasure the impact of capacity buildingservices. 20
  • What Leads to Change? Conditions that help capacity building have an impact Capacity building is most effective with managerial support Very important Somewhat important Not important Your manager values capacity building 86% 13% Capacity building is most The quality of the technical assistance is 76% 21% 3% likely to lead to change high when managers value Staff get training on the job 75% 23% 2% these services.Advancement is linked to capacity building 68% 27% 5% received High quality technical Motivated staff are selected for trainings 65% 32% 3% assistance and on-the-job Capacity building content is repeated in 45% 49% 6% training also ranked high different ways as influential factors. Training recipients has to pay part of the 27% 46% 28% cost Sample = 368 21
  • FundingHow institutions pay for capacity building services
  • Funding SourcesSubsidies, scholarships and grants are keyTwo-thirds of FSPs reported they rely onexternal financial support for capacitybuilding services.More than one-third of capacity buildingservice providers have over 50% of theircosts covered by subsidies. 23
  • The Bottom Line Capacity building service providers are for-profit businesses 66% of capacity Do your fees need to cover costs building service and produce profits? providers globally Yes No run as businesses. 75% East Asia and Pacific 25% Their fees must 69%Eastern Europe and Central Asia 31% cover costs and Latin America and Caribbean 52% 48% result in profits. Middle East and North Africa 40% 60% North America 30% 70% Half of the South Asia 39% 61% companies that rely Sub-Saharan Africa 71% on subsidies must 29% also turn a profit. 0% 50% 100% Sample = 203 24
  • ConclusionsWhat we learned from the survey
  • Main Conclusions• Capacity building remains a huge constraint• Financial services providers want tailored, locally available solutions• Capacity building has to keep up with a quickly changing market 26
  • Main Conclusions• Finding qualified staff is a major challenge for capacity building services providers• There is a mismatch between demand and supply on market research• Management must value capacity building for it to have an impact• Capacity building service providers aim to run as businesses, but rely on subsidy 27
  • Next Steps These survey results together with the findings of a literature review and expert interviews will feed into guidance for funders on the development of sustainable markets for capacity building services for financial inclusion. Comments are welcome. Send them to Antonique Koning: 28
  • Advancing financial access for the world’s poor