Deposit Mobilization by the MFIs: Clients’ Perpectives

Abstract

This paper aims at identifying Microfinance Institutions’ deposit mobilization issues from the perspectives of the clients - the members of the MFIs. It looks into the different aspects of field level experience and practice of the NGOMFIs working in Bangladesh. To identify the clients’ perspective on deposit mobilization by MFIs, this paper presents findings from a study, which was conducted for Microcredit Regulatory Authority and represents sample survey of 450 members of different NGO-MFIs working in the 4 divisions namely Dhaka, Chittagong, Rajshahi, and Khulna. A structured questionnaire was used to conduct the survey which was developed through literature review and finalized through pilot survey. Both descriptive and inferential statistics were used to analyze the data. Descriptive statistics such as tables, simple percentage, correlations etc. were used to describe the situation. Results show that MFIs are filling the gaps of the financial services required by vast majority of relatively poor people having no access to the banking system, and thus working as a complementary segment of overall financial system of the country with demands for more services to render. One of the major demands registered is the access to more flexible system of deposit by the rural people besides their demand for greater volume of credit flow, that still remain only partially fulfilled.