Microfinance
Microfinance and commercializationMicrofinance has grown into a full-fledged industry, attracting in its growth an ever larger and wider range of practitioners, investors and supporters. The sector has been capable to provide financial services to many poor and low-income people. Social and institutional investors are keen in supporting Microfinance Institutions: MFI`s have become an asset class.
While achieving impressive results in terms of outreach and providing the world`s poor with access to finance, microfinance institutions have not been very successful in reaching the poorest, mostly rural population, that remains derived from financial services. Also, in post-conflict or post-emergency situations, microfinance institutions have offered only limited solutions to the needs of the population.
On the other hand, continuously new microfinance initiatives emerge. They play a critical role in the innovation of microfinance markets, as global supply of finance for the poorest population is still far less than demand. New initiatives aspire to service clients not yet reached by other institutions; trying to apply existing distribution methods or designing new practices of access to finance to poorer target segments.