An assessment of the quality of service delivery in microfinance companies in Zambia : case study of totten gram fin services

This study aimed to assess the quality of service delivery in Microfinance Companies (MFIs) in Zambia, using Tottengram Fin Services as a case study. The microfinance sector in Zambia faces challenges such as donor dependence, rising operational costs, low client retention, high staff turnover, and a decline in service quality, leading to suboptimal MFI performance. The study analysed customer perceptions of service quality in Zambian MFIs and its link to client retention, evaluated operational challenges, and identified measures for enhancing service quality and sustainable performance. The SERVQUAL model was used as the theoretical framework, with independent variables including organizational factors, regulatory environment, and customer expectations, and dependent variables like quality of service delivery. A qualitative research approach was adopted, with data collected from 3800 customers and 150 employees from Tottengram Fin Services' five branches. The major findings revealed that responsiveness, professionalism, transparency, personalized approach, continuous improvement, and feedback mechanisms were key factors in customer perceptions of service quality. Operational challenges included limited access to financial infrastructure, insufficient technological capabilities, inadequate human resources, limited financial resources, and regulatory constraints. Measures to enhance service quality and sustainable performance included customer-centric approach, technology adoption, skilled workforce, continuous training, strategic partnerships, and monitoring and feedback mechanisms. Recommendations include conducting regular customer satisfaction surveys, addressing operational challenges, investing in technology infrastructure, providing comprehensive staff training programs, and fostering strategic partnerships with NGOs, government agencies, and technology providers. These recommendations can guide MFIs in Zambia to improve service quality, overcome operational challenges, and achieve sustainable performance