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2017-10-09 - Colloque/Article dans les actes avec comité de lecture - Anglais - 34 page(s)

Godfroid Cécile , "Relationship Lending in Microfinance: How does it Impact Client Dropouts?." in Research Meets Africa - Semaine Africaine de la Microfinance , Addis Abeba, Ethiopie, 2017

  • Codes CREF : Economie des PVD (DI4375), Management (DI4360)
  • Unités de recherche UMONS : Economie et gestion de l'entreprise (W742)
  • Instituts UMONS : Institut de Recherche en Développement Humain et des Organisations (HumanOrg)
  • Centres UMONS : Microfinance (CERMI)
Texte intégral :

Abstract(s) :

(Anglais) Client retention has been identified as a critical factor for both social performance and financial sustainability of microfinance institutions (MFIs). It seems thus to be essential to examine the factors that can explain client dropouts in the microfinance sector. This study focuses on factors linked to the relationship clients have with their loan officer to analyze client dropouts. We assume that the higher the ratio between the number of different loan officers a client dealt with compared to the number of loans he received from the MFI, the less intensive the relationship between both actors is. Using a sample of 47,080 observations covering the time period 2005-2015 from a MFI active in Ethiopia and running an IV probit regression, our results demonstrate that a more intensive relationship between clients and loan officers decreases the probability that clients leave the MFI, showing the importance of close contacts between loan officers and their clients.