Public confidence in microfinance institutions and demand for microfinance services in Ghana

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This study aims at analyzing the level of confidence in microfinance institutions in the Greater Accra region, Ghana using a financial services confidence index questionnaire adapted from the Central Bank of Tukey. The study adds to already existing literature on microfinance. The survey approach was used to gather data through convenience sampling. Logistic regression was also used to find the relationship between the demand for microfinance services and confidence in microfinance services while and t-test differences in means was used to find the mean confidence differences among categories in the study sample. The decision to patronize microfinance service is used interchangeably with demand for and use of microfinance services in this study. It was found that respondents of the study are optimistic about the microfinance sector of Ghana. There is, however, no difference between the confidence index of men and women but women demand microfinance services more than men. A positive relationship was established between the level of confidence in microfinance institutions and demand for microfinance services. It was also found that customer satisfaction and a person’s level of education affects how much confidence he/she has in the microfinance sector of Ghana. It is recommended that microfinance operators should take measures to improve the level of confidence in the sector and increase the demand for their services. Also, customer satisfaction should be a priority of management of microfinance institutions in the quest to improve confidence in the sector.
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2017
Ghana, microfinance institutions, public confidence, financial services surveys