The Market for MDO Deposit Services in Tajikistan

This study identifies demand and supply factors in deposit services in Tajikistan with a specific emphasis on microcredit deposit organizations (MDOs). The study includes competitor research and customer research and surveys of the general population and MDO borrowers.

The study reveals that the use of financial services in Tajikistan is very limited. The total value of bank deposits does not exceed 24 percent of the countrys GDP. Findings indicate that:

• Few people keep their money in banks or MDOs;
• Those who do save in banks, deposit very large sums, creating an opportunity to develop deposit services in the country;
• Banks and MDOs have a range of deposit products with similar features;
• These products have low uptake because financial institutions lack marketing materials, communication about products and make no real effort to sell products;
• Most households lack the income to save;
• People who save do it for precautionary reasons, emergencies and long term goals such as family celebrations, childrens education and housing needs;
• Microfinance borrowers have better saving habits compared to the general population.

The study concludes with recommendations for MDOs including the strategy for product piloting and implementation.