Consulting company

Study of the financial market in the Alai and Chon-Alai districts of the Osh region

Project: Study of the financial market in the Alai and Chon-Alai districts of the Osh region, within the framework of the “Bai Alai ” program for the creation of small businesses and income-generating activities in Alai and Chon – Alai, Phase 2 ­_ Kyrgyzstan, HELVETAS Swiss Intercooperation, with the support of the Aga Khan Foundation in Kyrgyzstan,

Research locations: Alai, Chon-Alai districts and Osh city;

Research period: October-November, 2018.

Target groups: sector beneficiaries: livestock farming, beekeeping, handicrafts (handicrafts) and tourism.

Purpose of the study: Assessing the financial sector market and identifying gaps between the demand and supply of financial services and products in the Alai and Chon-Alai regions, Osh region in order to improve financial inclusion.

Research objectives:

  1. Determining and assessing the demand for financial products and services that are important and in demand by target groups in each selected sector, the main restrictions that target groups face in obtaining and using financial products and services;
  2. Identification and evaluation of financial products and service offerings;
  3. Analysis of the financial market and identification of potential areas for intervention

Research methods:

  • Quantitative and qualitative analyzes of questionnaire data and results, in-depth interviews and focus groups.
  • Use of systematic probability sampling according to quotas by age, sector of employment and gender.
  • Snowball method to prevent too homogeneous mass of respondents of the same age, same income and with the same activity.

Objects of study:

As part of the study, 120 respondents were interviewed, of which:

  • 68 target group respondents
  • 14 respondents from the financial sector
  • 38 focus group respondents


Awareness of other loans and financing within various projects is very low.

The use of new banking products is low and this is due to the weak economic benefits for beneficiaries from using remote banking.

From the point of view of increasing educational potential, respondents noted that they need more consultations and master classes from practitioners and successful businessmen. Their experience in creating a profitable enterprise and building an effective distribution chain can help them develop their own business.

It has been proposed that with such distribution channels as business connections between beneficiaries, it is possible to develop and implement a new credit product that can bring target groups closer to their expectations in terms of deadlines, interest rates, and collateral conditions. Such lending implies that all participants in the chain work with each other on a contractual basis. This transparency in business is achieved by the fact that all participants in the chain will conduct settlements with each other primarily through non-cash payments. And the contractual basis of cooperation between the beneficiaries of the target sectors will allow providing credit without collateral on a contractual basis. At the same time, all settlements can be successfully conducted using remote banking: internet, mobile, and through the terminal network.