Client Satisfaction In Microfinance Program

This study explores CARE Bangladeshs microfinance project, INCOME III, with the aim of finding out client likes and dislikes. It also gathers information about the institutional experiences of partner MFIs and other best practices that contribute to client satisfaction.The study examines:

• The microfinance landscape in Bangladesh.
• Competition in the microfinance industry and its effect on client satisfaction.
• INCOME partners role in client satisfaction.
• Client opinion on various issues, it finds that:
  • Clients like the selection criteria, the group approach, the pace of loan disbursement, the periodical verification of passbooks, the attitude of the MFI staff,
  • Clients do not like the joint liability provision, the ‘non-withdrawal of savings provision, the interest rates, the loan sizes and current insurance practices.

The study concludes that:

• Clients like the methodological practices relating to group methodology,
• Clients growing demand for loans does not match the ability of the partner MFIs,
• Cutthroat competition prevails in the sector,
• Clients want more services than the MFIs can provide,
• MFI have a condescending approach towards clients.

The study recommends:

• The creation of a new breed of MFIs or a new kind of microcredit banks that are authorized to take deposits.
• The recruitment of qualified professionals with training in banking technology and customer satisfaction.
• Transparency.
• Formal research and client feedback on products and services.