Gender and loan management in financial institutions: interrogating experiences of loan’s officers in Ugandan commercial banks

Abstract

The study examined the gender influences in loan management practices in Ugandan commercial banks, focusing on the experiences of Loan Officers in the execution of credit-related functions. This study interrogated gendered dynamics manifest in loan decision-making, risk assessment, client interactions, and recovery strategies among Loan Officers in commercial banks. The research was guided by Gendered Organization Theory (Acker, 1990) and Social Role Theory (Eagly & Wood, 1991), which explain how institutional structures and social expectations reproduce gender inequalities in professional settings. A qualitative research approach was adopted within a cross-sectional design, using in-depth interviews and key informant interviews to gather primary data. The study was conducted in Kampala City, involving twenty participants purposively selected from two commercial banks United Bank for Africa (UBA), representing an international bank, and Finance Trust Bank, representing a local financial institution. Data were analyzed thematically in alignment with the study’s objectives. Findings revealed significant gender-based variations in the loan management process. Female Loan Officers exhibited more methodical and cautious approaches to credit evaluation and risk assessment, resulting in lower default rates but fewer loan disbursements. Male Loan Officers, conversely, prioritized efficiency and speed, achieving higher lending volumes but also higher portfolio risk. Gender also influenced client interactions where female officers faced authority challenges, particularly when dealing with male clients, but were more effective in building trust and relational engagement with female borrowers. Institutional practices and cultural norms reinforced these disparities, as women experienced skepticism regarding their competence, stricter performance expectations, and limited upward mobility. Moreover, systemic biases in collateral requirements and loan approval processes disadvantaged female borrowers, reflecting broader gendered assumptions about financial competence and risk tolerance. The study concludes that gender profoundly shapes both the professional experiences of Loan Officers and the overall dynamics of loan management in Ugandan commercial banks. Institutional cultures, embedded stereotypes, and performance metrics collectively sustain gendered inequalities in lending and credit recovery. In view of the findings, there is need for financial institutions to adopt gender-sensitive training, integrate bias monitoring frameworks in credit assessment, and promote leadership diversity to foster inclusivity and equitable treatment in loan management. Additionally, the study calls for policy reforms by the Bank of Uganda and Uganda Bankers’ Association to mainstream gender in financial sector governance and performance appraisal systems.