Chapter One — 1.1 Background to the Study

In recent years, Credit Scoring Models has emerged as a critical factor shaping customer retention across organizations operating in and around Evidence from Sub-Saharan Africa. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how credit scoring models relates to customer retention has become an important area of both scholarly and practical concern.

Within the context of Evidence from Sub-Saharan Africa, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of credit scoring models on customer retention, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on credit scoring models, there remains limited consensus on the precise nature of its relationship with customer retention, particularly within Evidence from Sub-Saharan Africa. Many organizations continue to make decisions about credit scoring models without a clear, evidence-based understanding of how those decisions ultimately affect customer retention. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Credit Scoring Models on customer retention in Evidence from Sub-Saharan Africa.
2. To assess the extent to which credit scoring models influences customer retention within the study area.
3. To identify the challenges associated with credit scoring models in relation to customer retention.
4. To recommend strategies for optimizing credit scoring models in order to improve customer retention.

1.4 Research Questions

1. What is the effect of credit scoring models on customer retention in Evidence from Sub-Saharan Africa?
2. To what extent does credit scoring models influence customer retention within the study area?
3. What challenges are associated with credit scoring models in relation to customer retention?
4. What strategies can be adopted to optimize credit scoring models in order to improve customer retention?

1.5 Significance of the Study

Beyond its academic contribution to the field of finance / banking, this study has practical value for management teams within Evidence from Sub-Saharan Africa seeking to understand how credit scoring models translates into measurable outcomes around customer retention. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this study confines itself to Evidence from Sub-Saharan Africa, focusing specifically on how credit scoring models relates to customer retention within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.