Beyond the Borrowers: The Power of Relationship Quality in Creating Loyal Clients for Microfinance Institutions
Abstract/Description
The success of microfinance providers, their sustainability and aim of achieving double bottom line objective is greatly depends upon relationship quality which helps in creating loyal customer base. In microfinance, loan managers or the personals directly interacting with the clients in play critical role in relationship quality, their interaction foster or hinders the client interaction with the institution and ultimately affects their loyalty, future purchase intentions and recommendations to others. Considering the significance of relationship quality, this study aims to explore key dimensions which contributes towards high relationship quality for microfinance clients. This study has used the lens of social exchange theory to explore this concept in microfinance at interpersonal and organizational levels. Semi-structured interviews have been conducted from the loan managers and top management of microfinance providers in Pakistan to collect data. Thematic analysis highlighted trust, commitment, satisfaction, communication and empathy as key dimensions contributing towards relationship quality. The study has implications for the microfinance providers, loan managers, policymakers and other relevant stakeholders to know the areas they must focus to achieve high relationship quality, i.e. a necessary ingredient for their financial sustainability.
Keywords
Relationship Quality, Social Exchange Theory, Loyalty, Microfinance Institutions, Borrowers
Track
Finance
Session Number/Theme
Finance - Session I
Session Chair
Dr. Hilal Anwar Butt
Start Date/Time
14-6-2025 9:00 AM
End Date/Time
14-6-2025 10:40 AM
Location
MCC 9 Ground Floor, AMAN CED Building
Recommended Citation
Ismail, A., & Ch, S. (2025). Beyond the Borrowers: The Power of Relationship Quality in Creating Loyal Clients for Microfinance Institutions. IBA SBS 4th International Conference 2025. Retrieved from https://ir.iba.edu.pk/sbsic/2025/program/108
COinS
Beyond the Borrowers: The Power of Relationship Quality in Creating Loyal Clients for Microfinance Institutions
MCC 9 Ground Floor, AMAN CED Building
The success of microfinance providers, their sustainability and aim of achieving double bottom line objective is greatly depends upon relationship quality which helps in creating loyal customer base. In microfinance, loan managers or the personals directly interacting with the clients in play critical role in relationship quality, their interaction foster or hinders the client interaction with the institution and ultimately affects their loyalty, future purchase intentions and recommendations to others. Considering the significance of relationship quality, this study aims to explore key dimensions which contributes towards high relationship quality for microfinance clients. This study has used the lens of social exchange theory to explore this concept in microfinance at interpersonal and organizational levels. Semi-structured interviews have been conducted from the loan managers and top management of microfinance providers in Pakistan to collect data. Thematic analysis highlighted trust, commitment, satisfaction, communication and empathy as key dimensions contributing towards relationship quality. The study has implications for the microfinance providers, loan managers, policymakers and other relevant stakeholders to know the areas they must focus to achieve high relationship quality, i.e. a necessary ingredient for their financial sustainability.
