Credit Policy And Customers Satisfaction In Financial Institution A Case Study Of Cairo International, Bank. Kampala-Uganda

TABLE OF CONTENTS

DECLARATION

APPROVAL

ACKNOWLEDGEMENT Error! Bookmark not defined.

DEDICATION

TABLE OF CONTENTS iv

LIST OF TABLES

LIST OF FIGURES

ABSTRACT

CHAPTER ONE 1

1.0 introduction 1

1.1 Background of the study 1

1.2 Statement of the problem 2

1.3 Purpose of the study 3

1 .4 Objectives of the study 3

1 .5 Research questions 3

1.6.0 Scope of the study 3

1.6.1 Geographical scope: 3

1.6.2 Time scopL

1.6.3 Subject scope 4

1.7 Significance o[the study 4

1.8 Key Operational Terms 4

1.8.1 Credit policy 4

1.8.2 Customer satisfaction 4

1 .8.3 Customer loyalty 4

1 .9 Conceptual lrameworl( s

CI IAPTER TWo 6

LITERATURE REVIEW 6

2.0 Introduction 6

2.1 Financial sector in Uganda 6

2.2 Credit Policy Conceptualization 7

2.3 Key elements of a good Credit Policy 8

iv

2.3.1 Credit stai~dards ~ 8

2.3.2 Credit terms 9

2.3.3 Collection policy 10

2.4 Factors that Determine Customer Satisfaction 10

2.4.1 Valuing and appreciating customers 10

2.4.2 Product performance or Service quality 11

2.4.3 Customer service 11

2.4.4 Meeting/ exceeding expectations (customer expectations) 11

2.4.5 Company-customer relationship 11

2.4.6 Addressing customers’ complaints 1 2

2.5 Relationship between Credit Policy and Customer Satisfaction 12

CHAPTER~ 14

METHODOLOGY 14

3.1 Introduction 14

3.2 Research Design 14

3.3 The study population 14

3.4 Sample size 14

3.5 Sampling technique is

3.6 Sources of data Is

3.6 Methods of Data Collection 15

3.6.1 Interview Guide 15

3.6.2 Questionnaire 16

3.6.3 Observation schedule 1 6

3.6.4 Documentary study and desk research methods; 16

3.7 Data Analysis and presentation; 16

3.8 Variables of the study: 17

3.9 Validation of tools 17

3. 10 Data collection process 1 7

3.11 Limitation of the study 1 7

CHAPTER FOUR 19

DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF THE FIN1)INGS 19

4.0 Introduction; 19

v

4.1 Presentation of findings about the background information of the respondents .19

4.1.1 Gender of the respondents 19

4.1.2 Age bracket of the respondents 20

4.1.3 Distribution of departments of the respondents 21

4.2 Presentation of findings about the Key Elqments of a good credit policy for a bank 21

42.1 Existence of credit policies in place to cater for customers borrowing 22

4.2.2 Credit policies applied in Cairo Bank Ltd 22

4.2.3. The impact of the credit policy on the availability of credit to customers 25

4.2.4 Key elements that should be initiated in the credit policies of Cairo Bank Ltd 26

4.3 Identifying the major factors that determine the bank’s customer satisfaction 27

4.3.2 Key determinants of customer satisfaction in Cairo Bank Ltd 29

4.3.3 How the determinants of customer satisfaction measured 30

4.4 The relationship between credit policy and customer satisfaction in the banking sector 31

4.4.1 How the Bank’s credit policy affects its customer satisfaction 32

4.4.2 Understanding whether effect of credit policy on customer satisfaction can be

iniproveci 33

4.4.3 What should be done so as to improve on impact of credit policy on customer

satisfaction 34

CHAPTER FIVE 35

DISCUSSIONS, CONCLUSION AND RECOMMENDATIONS 35

5.0 Introduction 35

5.1.1 Onestablishingthekeyelementsofcreditpolicyforabank 35

5.1.2 On identifying the major factors that determine bank’s customer satisfaction 35

5.1.3 To examine the relationship between credit policy and customer satisfaction in banking

sector 36

5.4 Suggested areas of farther study 38

I?.EFEItEIJCES 39

APPENDIX 1: RESEARCH QUESTIONNAIRE 42

ABSTRACT

This study established credit policy and customer satisfaction in Cairo international bank Uganda

ltd in Kampala. The study was based on the following objectives and these are, to establish the

profile of the respondents in financial institutions, to establish the key elements of credit policy

fir Cairo bank and to examine the relationship between credit policy and customer satisfaction.

The study employed descriptive correlation design: dala was collected using researcher deviscd

questionnaires and interview. In regard to gender. the findings revealed that the majority of the

respondents 60% were male, in regard to department category, majority 40% were from the

marketing department, in regard to education level, majority 40% were bachelor’s degree

holders, and in regard to work experience, majority 45% had worked with in Cairo bank for 3-6

years. In regard to credit policy 65% were encountered to the service, in regard to customer

satisfaction, the study established that the maj;rity8s% customers are satisfied with the service

provided and was interpreted satisfactorily, 64% showed increase in sales, 70% increase in

profits. The results also suggested that there is relationship between credit policy and customer

satisfaction of 79.8%. The study concluded that the main goal of the research was establish the

impact of credit policy and customer satisfaction financial institution in Cairo bank branch of

Kampala district .it is recommended to Cairo bank to clarify company’s goals before implementing credit policy program through considering company’s needs, carry out customer orientation, competitive concentration and technological turbulence.