Case Study

Use of Financial Services over Time in Uganda

What are clients looking for in a financial institution?

This paper examines clients' use of financial services in Uganda over a twelve-year period. The study uses the following methods:

  • A time series analysis-based "MFI Use over Time" tool;
  • Interviews with clients to discuss the evolution of their use of financial services over this period.

The key results of the study are:

  • Clients use:
    • "Rotating Savings and Credit Associations" (ROSCAs) and " Accumulating Savings and Credit Associations"a (ASCAs);
    • Multiple financial institutions.
  • Clients seek:
    • Products and service delivery methodologies that meet their needs;
    • Good customer care and friendly staff;
    • Financial institutions that serve them quickly, both over the counter, and in terms of loan processing time;
    • Institutions with good premises and security guards to deposit money in;
    • Individual loan products, rather than the group-based methods;
    • Lower charges in financial institutions;
    • Transparency in all financial dealings.

The study concludes with the statement that clients look for ease of access to savings when they join a particular institution, and use informal institutions like ROSCAs and ASCAs to build lump sums.

About this Publication

By Beijuka, J., Mukwana, P. , Kaffu, E.