The paper examines why the MFIs in Bangladesh suffer high drop-out amongst their clients. The study also seeks to improve understanding of why the current systems and services being provided by MFIs appear (on the basis of these drop-out rates) to be failing to meet the needs and demands of clients, and draws lessons for MFIs that wish to effect change.

The paper suggests that drop-outs are expensive for MFIs, both in terms of money already invested that is lost as the member leaves, and in terms of lost potential future business from the member. Thus, for these reasons, MFIs in quest to develop sustainable organisations should seek to improve/tailor the services they are offering in order to reduce client dissatisfaction which in turn would reduce drop-outs and aid in retaining high-value, graduating clients.

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