Finding the Right Couple Between Microfinance Loan Officers and Clients in Terms of Gender

Abstract

This paper examines the impact of the gender composition of client- loan officer pairs on loan repayment in an Ecuadorian microfinance institution. Using negative binomial regressions and random effects analyses, our results reveal that the most favourable client-loan officer pairs in terms of repayments are those with female loan officers whereas those with male loan officers are the least performing ones. We also show that a male client - female loan officer and female client-female loan officer pairs perform better when the previous loan officer the client was associated with was also a woman. Our findings have implications for theory and management. They point to relational differences between male and female loan officers when interacting with microfinance clients, these differences being confirmed through an additional qualitative research on the field.