ASSESSING THE QUALITY OF CUSTOMER SATISFACTION IN MICROFINANCE INDUSTRY IN THE KUMASI METROPOLIS - CASE STUDY OF RAMZIAH CREDIT UNION, KUMASI

ABSTRACT

The purpose of the study was to assess the quality of customer satisfaction in microfinance industry in Kumasi Metropolis, using Ramziah Credit Union as case study. The type of research design employed for this study is the case study method. Both primary and secondary data were useful for the research. Qualitative and quantitative research approaches were used for the study. The population for the study was three hundred and twenty (320) customers. These include selected Microfinance Institutions in the Kumasi Metropolis. Simple random sampling procedure was used to select 190 customers of the Ramziah Credit Union in the Kumasi Metropolis. The main instrument used to collect data was questionnaire. The administration of the questionnaire was done personally by the researcher. The data collected was first edited to check inconsistency. The edited responses were recorded and analysed. The main statistical technique employed was frequency charts and percentages. The study findings concluded that most clients were not completely satisfied with the MFI loan applications. The services provided by the staff is professional and customers are given individual attention. The MFI lack of adequate resources to expand the microfinance industry, inadequate monitoring agencies to monitor the microfinance institutions, inadequate competent personnel to man the microfinance institutions, lack of suitable ICT software‟s to track loan default and inability of the customers to pay back loans are challenges the microfinance institutions face in their attempt to provide quality service to satisfy the customers. The study recommended that the MFI must review loan applications requirements and procedures to meet customers‟ expectations. The Bank of Ghana must intensify the monitoring agencies capacity to monitor the microfinance institutions in Ghana.