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Research Proposal

BUSINESS RESEARCH METHODS (BRM) TERM REPORT PROPOSAL

Submitted to: Javed Ahmed Qureshi Course Instructor Business Research Methods (BRM)

Submitted by: Afshann Aziz - 1029102 Muhammad Anser Malik - 1029112 Fahid Memon - 1029104 Jane James Din 1029110 Class no: MBA 72 (D) - 3A Submitted on: October 25, 2011

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Abstracti
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Introduction.......................................................................................................

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1.1 Research Problem.02 1.2 Research Objective.......02 1.3 Importance Of Study.02 1.4 Hypotheses02 1.5

Research Methodology.........................................................................03 1.5.1 Research Design........................................................................03 1.5.2 Sampling.....................................................................................03 1.5.3 Data Collection Method.....04 1.5.4 Research Technique...................................................................04 1.5.5 Data Analysis.............................................................................04
1.6 Time And Resource Limitations..04

1.7 Research Ethics..05 References...05

ABSTRACT

In this business research proposal, for conducting the research on Branchless Banking (BB), introduction to the current scenario of the BB is defined as a basis of research followed by research question(-s), research objective, importance of study and hypotheses. Furthermore, the research methodology to be adopted is elaborated which consists of research design, sampling, data collection method, research technique and data analysis tools. The later part of the research proposal contains the time and resource limitations and the research ethics.

1. INTRODUCTION Current population situation of Karachi consists of approximately 18 million (of 177 million population of Pakistan) inhabitants from within Karachi and various parts of the country. As a result of which the demand for transferring of money in the most effective and efficient way is the need of the time; this segment particularly. In many developing countries, however, 9 out of 10 people do not have a bank account or access to basic financial services (Wambari Andrew 2009). In Pakistan, due to high illiteracy rate, opening of an account, filling up of the cheques and carrying out basic transactions are some of the most important inhibitors of using such financial services. With the advent of technological boom things have become easier and remote areas are accessible - unlike ever before. Since Branchless Banking (BB) is a type of micro financing therefore it focuses majorly on the low income group. Technically, low income group is not considered to be of much importance for the banks. However, over the period of time State Bank of Pakistan (SBP) realized that a very big number of financial clients are there whose needs are unaddressed. Further more, there are many areas which are far from the reach of the banks (usually because of large setup costs and very low turnovers). The problem or meeting the financial instrument needs of the low income group can now be met. Almost 108 million (over 60% of Pakistans total population) are people are using mobile phones therefore the BB is the future of banking now. It is both time saving and efficient way of transferring way of money as well as provides banks with the opportunity to increase their consumer base at a very low set up cost. Branchless banking services were introduced in Pakistan in 2010. Today, there are almost 0.5 million branchless bank accounts registered with the State Bank of Pakistan. Telenor (Norway) and United Bank Limited (Pakistan) currently offer these services through a network of 14000 agents nationwide. What is very interesting is to note that Pakistan provides a perfect market/customer mix for branchless banking products and services. On one hand, 60% of the countrys population lives in rural areas. Then the adult literacy rate is just 54%. Given these facts, the market seems challenging with respect to customer education. But on the contrary, we have the influx of foreign remittances of 11.1 billion USD Pakistan received this year. Then there is mobile tele-density of 62% (largest in South Asia), which in fact constitutes branchless bank infrastructure. Considering these driving forces, future of branchless banking in the country is bright.
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Subject Matter Experts estimate a market size of 60-70 million customers, which identifies that 39% of Pakistan 180 million populations can banking branchlessly. To recall, 88% of Pakistanis remain unbanked! 1.1. RESEARCH PROBLEM: With an increasing population explosion rate of 2.05 % of Pakistan and being a developing country the available resources need to be customized according to the current scenario. Therefore, our research problem is stated as: A Study of Emerging Trend and Effectiveness of Branchless Banking (BB) Among People living and working in Karachi.

1.2. RESEARCH OBJECTIVE 1. To prove the growing use of branchless banking in Karachi.

2. Challenges and Hurdles in using BB - (Mobile Banking as an instrument for transactions)


3. To determine the effectiveness of this system. 4. Its advantages and disadvantages.

1.3. IMPORTANCE OF THE STUDY The study will not only suffice the need of our course requirement rather it will be a helping aid for other researchers, financial institutions such as micro finance banks and the cellular companies to educate themselves as to what areas are lagging and unreached. Moreover, it will also be beneficial for the above mentioned to gauge their services and users.

1.4. HYPOTHESES
1. Branchless banking (BB) is the future of modern banking.

2. Pakistan has a great potential of growing in this category (BB). 3. Branchless banking facility is used by most of the Pakistans working and non-working segment.
4. It is very common form of facility used by the Middle Class (upper and lower) and Lower

class (upper and lower).


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5. BB is one of the best ways to maintain good customer relationship with lower value

account clients.

1.5. RESEARCH METHODOLOGY

The research method proposed to be used for conducting research work is enlisted below:
1.5.1. RESEARCH DESIGN

For carrying out the research the proposed mode of collecting information is survey. This design entails the collection of data of more than one case and at a single point in time in order to collect a body of qualitative or quantifiable data in connection with several variables which are then examined to detect the patterns of association (Bryman 2001). The proposed research will be qualitative as well as quantitative in nature with a population consisting of individuals living and working away from home or have the responsibility to financially support their family(-ies).

1.5.2. SAMPLING The sample size selected for this research consists of 100 (one hundred) individuals living and working in Karachi. Which is further elaborated as; Karachi being the financial hub of all the activities it is the true representative of the whole population. Instruments for conducting this research are questionnaire and interviews. Moreover, data will be collected and analyzed by primary and secondary resources. Sample Details:

Sample size : 100 Individuals (Retailers, Consumers And Service Providers)


Age Bracket : 22 45 Years Gender: Both Male and Females Occupation: Working Middle and Lower class Geography: Karachi City Users and non-users of the mobile phone banking facility
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1.5.3. DATA COLLECTION METHOD As the sampling is done using probability (random sampling) method. This is done to make research time and cost effective as well as genuine opinion of the respondents easily available. Both primary and secondary methods will be used to collect data using details from previous industry research reports and freelance researchers. 1.5.4. RESEARCH TECHNIQUES The underline research technique to be used is survey. This would further consist of interviews and questionnaires. For interviews, semi-structured questions will be used and the questionnaires will consist of a mix of open ended and closed ended questions. The Likert measurement scale will used for analyzing the extent to which consumers are rating the satisfaction 1.5.5. DATA ANALYSIS Analytical tools that will be used in analyzing the collected data of the survey are as follows:

Microsoft Excel spreadsheets and Statistical Package for Social Science (SPSS)

1.6. TIME AND RESOURCES LIMITATIONS Among many resource challenges data and time are the most crucial factors. Therefore, at this stage we take the liberty to highlight the importance of above resource challenges, which we foresee, may have direct or indirect impact on the authenticity, relevance and subjectivity of this research endeavor. In the quest to efficiently and effectively carry out this research study, we look forward to conduct the research plan in the most scientific way to contain limited relevant data availability and sharp deadlines. 1.7. RESEARCH ETHICS The ethical requirements for carrying out the research are well evaluated and suggest that it is not aimed to discriminate individuals on the basis of their income.

REFERENCES
1. State Bank of Pakistan, Branchless Banking Guidelines for Financial Institutions desires to undertake branchless banking-Draft for comments Nov 2007 2. Consultative Group to Assist the Poor (CGAP), Branchless Banking in Pakistan: A laboratory for Innovation 2011
3. Panjwani, Saurabh, Towards End-to-End Security in Branchless Banking,

saurabh.panjwani@microsoft.com
4. Donne, Jonathan & Andres Tellez, Camilo Mobile banking and economic

development: Linking adoption, Impact and Use, Nov 2008 5. Ann,Byrd Platt, Branchless Banking Update: Should We Bank on Phones or the Post July 2011 6. Information Of Number Of Mobile Users In Pakistanhttp://www.pta.gov.pk/index.php?option=com_content&task=view&id=269&Itemid=658 7. Figure of Population Of Karachi http://www.karachicity.gov.pk/ 8. Economic Survey Of Pakistan 2010-2011 , For The Population Growth Rate http://www.finance.gov.pk/survey/chapter_11/Highlights.pdf