Customers’ Perception of Microfinance Services as a Tool for Rural Development: A Romanian Case Study

Abstract

Microfinance institutions (MFIs) play a vital role in extending financial services to marginalized and underprivileged populations worldwide. While the focus of MFIs has traditionally been on providing financial products, recent research highlights the importance of intangible factors in shaping their success and sustainability. This research examines the influence of factors such as trust, empathy, organizational culture, and reputation on MFI performance. A structured questionnaire was developed, and data were collected from 110 clients. Statistical analysis, including Cronbach alpha, composite reliability, and exploratory factor analysis, was employed to assess the reliability, validity, and dimensionality of the collected data. Three dimensions of service quality were identified: empathy and assurance, trust, and intangibles. While gender differences in perception were observed, they were not statistically significant. However, significant differences were noted across age groups, educational levels, and types of businesses. Understanding and addressing factors related to trust, intangibles, and specific aspects of service satisfaction are crucial for enhancing client engagement and long-term success. By continuously striving to improve service quality, microfinance companies can strengthen client relationships and position themselves in such a way as to achieve sustainable impact and success in the microfinance landscape.