Are Women Better Loan Officers?

2009 ◽  
Author(s):  
Thorsten Beck ◽  
Andre Guettler ◽  
Patrick Behr
Keyword(s):  
Loan Officers

Loan Officers’ Information Focus in SME Loan Assessment: A Case Study

2018 ◽  
Author(s):  
Alexander Rad ◽  
Peter Öhman ◽  
Darush Yazdanfar
Keyword(s):  
Loan Officers ◽  
Information Focus

Loan officer rotation and credit access: evidence from Madagascar

2019 ◽  
Vol 80 (1) ◽  
pp. 51-67
Author(s):  
Yaw Sarfo ◽  
Oliver Musshoff ◽  
Ron Weber
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Frequency Effect ◽  
Content Type ◽  
Credit Access ◽  
Loan Officer ◽  
Microfinance Institution ◽  
Lending Decisions ◽  
Loan Officers ◽  
Loan Approval

Purpose With exclusive data from a commercial microfinance institution (MFI) in Madagascar, the purpose of this paper is to investigate if loan officer rotation (change of loan officer) has an effect on credit access (loan approval) in rural and in urban areas. The authors further analyze how the frequency of loan officer rotation affects credit access in rural and in urban areas. Design/methodology/approach The authors apply propensity score matching to compare credit access between loan applicants who experienced loan officer rotation and loan applicants who experienced no loan officer rotation in rural and in urban areas. Findings Results show that loan officer rotation has a positive and statistically significant effect on credit access. The authors observe further that loan officer rotation has a different effect on credit access in rural and in urban areas. Whilst rural loan applicants who experienced loan officer rotation are more likely to have credit access, urban loan applicants show no statistically significant effect of loan officer rotation on credit access. For the frequency effect on credit access, the authors observe that one loan officer rotation has a positive and statistically significant effect on credit access whereas results are mixed for two loan officer rotations. Research limitations/implications Even though the authors can show that loan officer rotation can improve credit access to loan applicants, especially in rural areas, the conditions in Madagascar are unique. Therefore, results need to be verified in other countries and institutional contexts. Practical implications From the perspective of MFI, the authors recommend that the management of MFI needs to provide better tools to loan officers to improve on the evaluation of agricultural loan products or standardize the assessment of agricultural loan products to improve on lending decisions. Further, if applicable, the authors recommend that MFI should consider using credit worthiness assessment procedures which rely less on loan officer’s judgment for loan evaluation, such as automated systems. From the perspective of loan applicants, the authors recommend that loan applicants should request for a change of loan officer if they experience successive loan applications rejection. Originality/value To the authors’ knowledge, this paper is the first to provide empirical evidence on the effect and frequency of loan officer rotation on credit access in Sub-Sahara Africa, and Madagascar, in particular.

scholarly journals The Expectation Gap In The Legal System: Perception Differences Between Auditors And Judges

2011 ◽  
Vol 10 (3) ◽  
pp. 39 ◽  
Author(s):  
Jordan Lowe
Keyword(s):  
Legal System ◽  
Legal Liability ◽  
Business Owners ◽  
Third Parties ◽  
Third Party ◽  
Bank Loan ◽  
Small Business Owners ◽  
Expectation Gap ◽  
Role Responsibilities ◽  
Loan Officers

<span>The expectation gap, and its related effects on auditor legal liability, has been presumed to be caused by diverging perceptions by the auditing profession and third party litigants regarding the professions role, responsibilities, and related performance. Prior research regarding the expectation gap has focused on diverging perceptions of different groups (i.e. financial analysts, bank loan officers, small business owners, and auditors). While this research has identified an expectation gap between auditors and certain third-parties, it has neglected examining the perceptions of judicial litigants. This absence is somewhat ironic given the current auditor legal liability situation. This study fills this void by comparing judges and auditors attitudes toward the auditing profession. Results revealed a large divergence in perceptions of auditors and judges regarding their expectations of the auditing profession.</span>

Do Female Loan Officers Mitigate Social-Financial Trade-Offs in Microfinance?

2021 ◽  
Author(s):  
Moez Bennouri ◽  
Anastasia Cozarenco ◽  
Samuel Anokye Nyarko ◽  
Naome Otiti
Keyword(s):  
Trade Offs ◽  
Loan Officers

The Effects of Exclusive User Choice of Decision Aid Features on Decision Making

2003 ◽  
Vol 17 (1) ◽  
pp. 63-83 ◽  
Author(s):  
Patrick R. Wheeler ◽  
Donald R. Jones
Keyword(s):  
Decision Making ◽  
Decision Aid ◽  
Choice Behavior ◽  
Positive Relationship ◽  
Decision Aids ◽  
Technology Choice ◽  
User Choice ◽  
Loan Officers ◽  
Positive Effect ◽  
Exclusive Choice

Decision Support Systems (DSS) frequently have multiple decision aid (DA) features, causing users to engage in exclusive choice behavior; i.e., choice between alternative DA features that results in one feature being used to the exclusion of all others. We hypothesize that: (1) users choose the least effective (least accurate) DA feature in certain predictability environments; (2) users choose the DA feature that they believe they are most competent with; and (3) choice between DA features improves performance compared to those assigned the same DA feature. We test these hypotheses in an experiment in which 164 participants act as loan officers who chose between two decision aids (a database aid and a regression aid). The results support our hypotheses. Users employed a choice heuristic that caused them to choose the least effective DA feature for the task more than or as often as the most effective DA feature. Results also indicate a positive relationship between perceived competence and DA feature choice, and the positive effect of DA choice. We conclude by describing the insights provided by the results into the heuristics of information technology choice.

Mobile Phone

2018 ◽  
Vol 7 (2) ◽  
pp. 48-66
Author(s):  
William Clifford Gomera ◽  
George S. Oreku
Keyword(s):  
Mobile Phone ◽  
Test Performance ◽  
Group Discussion ◽  
Integrated System ◽  
Use Of Time ◽  
Business Operations ◽  
Monitoring Tools ◽  
Efficiency And Effectiveness ◽  
Loan Officers ◽  
Number Of Customers

This article describes how loan monitoring tools are integrated applications designed to help Micro Finance Institutions (MFIs) to improve efficiency and effectiveness in loan collection. The task of loan monitoring is monumental to loan officers, forcing them to travel long distances to serve a large number of customers leading to ineffective use of time and money. For that reason, it is of great advantage to have an integrated system that can manage their business with the click of the mobile phone button, allowing MFI and MB to concentrate on their day to day business operations. The application is expected to provide an easy way to track loans and collections from micro businesses owners as well as improving transparency through provision of customers' report. The study conducted through in-depth literature review, interviews, focus group discussion and questionnaire. All this allowed end user participatory approach for good insight to the solution. The data was analyzed through the coding approach (qualitative approach). The test performance through a white and black box was designed and conducted MFI premises.

Auditing and credit granting to SMEs: an integrative perceptual model

2019 ◽  
Vol 35 (1) ◽  
pp. 152-174
Author(s):  
Estefanía Palazuelos ◽  
Ángel Herrero Crespo ◽  
Javier Montoya del Corte
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Information Quality ◽  
Accounting Information ◽  
Bank Loan ◽  
Integrative Model ◽  
Medium Size ◽  
Content Type ◽  
Loan Officers ◽  
Credit Granting

Purpose The purpose of this study is to develop an integrative model of credit granting to small- and medium-size enterprises (SMEs) incorporating the loan officers’ perceptual factors about SMEs (risk and trust) and accounting information (quality and usefulness). Moreover, the role of auditing on credit granting has been studied. Design/methodology/approach The structural equation modelling (SEM) approach is used to test the joint effect of explanatory variables. Empirical evidence is obtained from a questionnaire administered to 471 bank loan officers in Spain. The questions are asked for both audited and not-audited firms. Findings The results obtained confirm that perceived risk and trust have a significant influence on the probability that SMEs can get access to credit and obtain better financing conditions. Additionally, this research supports the relevance of presenting high-quality accounting information, as it increases information usefulness for loan officers, which improves the perceived risk and trust on SMEs and leads to better credit granting. There are no significant differences on the model between the sub-groups of audited and not-audited SMEs, although the valuations are significantly better for the former. Research limitations/implications This study shows the need to consider subjective variables to understand properly the cognitive process underlying credit-granting decisions. Practical implications This research has relevant implications for the management of relationships between SMEs and banks. Originality/value This study contributes to the previous literature by proposing an integrative model of the variables that affect loan officers’ lending decision to SMEs, considering the influence of perceptual variables such as risk and trust, as well as the evaluation of the information available.

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