What Do Microfinance Customers Value?

This What Works note is based on key findings regarding customer needs and satisfaction levels from a research conducted with four microfinance institutions (MFIs).

The note makes comparisons across institutions to illustrate the areas in which customers from different countries and institutions employing diverse methodologies have similar and varying levels of satisfaction.

The note presents the following information from Latin America, Asia and Africa about the requirements and preferences of clients. It states that microfinance clients:

• Value speed and convenience;
• Care about interest rates;
• Want:
  • Access to larger loans;
  • Respect and recognition;
  • Ability to deposit voluntary savings;
  • Business, housing and education loans;
  • Health and life insurance.
• Are willing to pay what it costs for responsive sustainable services;
• Group members want different loan amounts and resent the need to guarantee repayments by other members of the group.

The survey finds that:

• Customers rank turn-around time as the most important attribute when taking a loan;
• Compulsory savings are a source of dissatisfaction;
• Reponses are positive regarding group meetings;
• Good customer service is an important differentiator in competitive markets.

The note concludes that MFIs will have to:

• Give preferential treatment to long-term customers;
• Reduce transaction costs;
• Offer more tailored loan products to meet the needs of individual customers;
• Respond to evolving customer demand and provide integrated financial services solutions.