University of Twente Student Theses
The Impact of Physical Screening Methods on Microfinancing Approval and Default Risk: A Case Study of Qredits
Boeringa, E.G. (2024) The Impact of Physical Screening Methods on Microfinancing Approval and Default Risk: A Case Study of Qredits.
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| Abstract: | Microfinance serves as a vital financial service for low-income individuals lacking traditional banking access. This study explores how microfinance approval and default risk are affected by on-site versus on-office screening methods, a topic with limited existing research. Using data from Qredits, the Netherlands' largest microfinance institution, the study investigates the impact of Qredits' recent pilot program introducing on-office screenings alongside traditional on-site methods. Employing a mixed-methods approach, qualitative data is gathered through document analysis, interviews, and observations, while quantitative analysis examines approval and default risk data from Qredits' management information system. Dummy variables represent screening methods, microfinance approval, and default risk, with statistical tests and chi-square analyses used to assess hypotheses. Findings suggest on-office screenings lead to fewer approvals compared to on-site screenings, though default risk does not significantly differ between methods. This research offers insights for financial institutions to refine risk assessment methods, potentially reducing default rates and improving financial decisions. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/98388 |
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