An In-Depth Quantitative Assessment of the Ugandan Microfinance Environment

This article presents aspects of a longitudinal research study using qualitative and quantitative tools, to understand market strategies of MFIs in Uganda. The author writes about the ineffectiveness and lack of research undertaken by MFIs to design such work strategies - most of the existing operating strategies have generated from mere gut-feeling.

The following are some of the key research findings as researched by the author:

• Self employed clients maximum users of financial services, despite high lending risk associated with them;
• Limited financial preference of MFI having highest level of awareness among clients;
• Higher preference for savings product as compared to credit;
• Emphasis on customer care for growing market share of MFIs;
• Greater sensitivity on borrowing price as compared to savings;
• Increased emphasis on pricing while selecting service providers in future;
• High demand for individual loans, although group lending dominates the market;
• High interest shown by non clients to join MF program.

The article elaborates on image assessment of financial service providers.