Abstract:
Micro financing is one of the most powerful tools for combating with poverty.
Microfinance is a means of the struggle against poverty in developing countries
through financing activities that generate incomes for poor households. Most of
people in developing countries have been given access to formal financial services
through microfinance programs.
In the competitive environment all micro financial institution are trying to increase
their level of profitability through providing quality of services as a competitive
strategy. This study was examined how the services quality impact to increase
customer satisfaction and how customers satisfaction impact to increase financial
performance.
The purpose of the study was to identify the impact of service quality on financial
performance of the micro financial institutions using the two micro financial
institutions selected in Uva province.
The researcher used primary data as well as secondary data for analyzing the research
questions the primary data were collected administering queers to randomly selected
60 customers. When presenting and analyzing the primary data, the researcher used
chart and graphic as well as Correlation analysis, Regression analysis and Hypothesis
testing. And also researcher analyzed secondary data collected from bank annual
reports, central bank report to find out quantitative impact of the performance.
Finding of the study revealed that there was positive relationship between service
quality and financial performance. And also service quality of loan has higher positive
Correlation (0.267) than other independent variables.
