A Study on Customer Profiling and Marketing Strategies Adopted By Microfinance Institutions
Author Name : Nagendrappa Vadakannanavar, Professor. Manish Kothari
In India, Microfinance started formally in 1992 by NABARD. The unique feature of microfinance programme is that it focuses on poor women for their social and economic development. In India basically two models of microfinance are dominant. The first one is SHG model and the second is MFI model. In order to study the impact of the services of microfinance institutions, primary data was collected from the sample districts of Haveri and Hubli. For this purpose, 50 respondents were taken. With the help of schedule questionnaire, the respondents were asked about the changes in their socio-economic life after joining the MFIs. After an extensive review of literature available on microfinance, except few, most of the studies found that microfinance is helpful in poverty alleviation, employment generation and women empowerment. In India, most of the studies had been conducted in southern region. Based on the research work, a few major recommendations made in the report include field supervision of MFIs to check ground realities and the operational efficiency of such institutions. Offer incentives to MFIs for opening branches in unbanked villages, so as to increase rural penetration. Also MFIs be encouraged to offer complete range of products to their clients. Transparent pricing and technology implementation to maintain uniformity and efficiency are among the others which these institutions should adopt.