Browsing by Author "OPPONG, CLEMENT"

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    Income levels and financial institutions’ preference
    (October, 2015) OPPONG, CLEMENT
    The study investigates whether low-income earners prefer microfinance institution to a commercial bank. It also investigates financial institution preference between male and female gender. The study is conducted using questionnaire to gather primary data from randomly selected adults in the Kumasi Metropolis. Cross tabulation and binary logistic regression analysis have been used for the study. The findings of the study reveal that gender has a positive, statistically insignificant relationship with microfinance, implying females are not better than males in terms of microfinance preference. Moreover, the results show that income has a positive but statistically insignificant relationship with financial institution preference, meaning low-income earners are not likely to prefer a microfinance institution to a commercial bank. By extrapolation low-income earners are rather more likely to transact banking business with a commercial bank than a microfinance institution. In view of the above findings, it is recommended that microfinance institutions should not target the low-income group and adult females alone but should also map out strategies to reach out to the wealthy adult individuals of both genders. The study also recommends an introduction of deposit insurance which provides some assurance to microfinance depositors that in event of collapse of their institutions insurance companies will come to their rescue.