Factors Influencing Customer Satisfaction in Group Lending among Women in Commercial Banks in Kisii County: A Case Study of Cooperative Bank, Kenya

Abstract

Group Lending is lending to groups of members of a community who have come together with the goal of reinforcing their credit worthiness. The objectives of the study were: to establish the influence of risk, loan protection and interest rates on customer satisfaction in group lending among women. The study used descriptive and explanatory research designs to secure information concerning an existing phenomenon from a selected number of respondents on their attitudes and opinions in relation to the factors influencing customer satisfaction in group lending in commercial banks in Kenya; a case of cooperative bank, Kisii branch between May 2014 and January 2015, data being collected by use of open and closed ended questions on a well structured questionnaires based on objectives of the study for 90 respondents sampled using cluster sampling technique and simple random sampling. Completed questionnaires were analyzed to ensure accuracy of information and then summarized both qualitatively and quantitatively. Qualitative analysis of opinions were organized into patterns relevant to the research. Quantitative data was analyzed using descriptive statistics mainly correlation analysis to ascertain the factors influencing customer satisfaction in group lending on women. Tables were used to organize and give a summary of the collected data. It was established that most widowed women engaged in businesses as compared to the women who belonged in other marital status, like married, single and divorcees. From the findings empowerment of the poor is seen as a key growth indicator to boost the eradication of extreme poverty and hunger. With the provision of microcredit coupled with training on business management skills, poverty in developing economies will be a thing of the past. The findings further suggested that the vast poor are able to increase their cash inflows, develop in entrepreneurship, which consequently can lead to the overall development of the economy.