It refers to a movement that envisions a world where low-income households have permanent access to high-quality and affordable financial services to finance income-producing activities, build assets, stabilize consumption, and protect against risks. Initially the term was closely associated with microcredit—very small loans to unsalaried borrowers with little or no collateral—but the term has since evolved to include a range of financial products, such as savings, insurance, payments, and remittances. Microfinance institutions and other financial service providers have worked over the past decades to develop products and delivery methods to meet the diverse financial needs of low-income people.
Microfinance Microfinance has built a solid track record as a critical tool in the fight against poverty and has entered the financial mainstream. The rapid growth of the industry over the past 15 years has reached approximately million clients according to recent estimates.
Nearly three billion people in developing countries have little or no access to formal financial services. Financial services for poor people are a powerful instrument for reducing poverty, enabling them to build assets, increase incomes, and reduce their vulnerability to economic stress.
Formal financial services such as savings, loans, and money transfers enable poor families to invest in enterprises, better nutrition, improved living conditions, and the health and education of their children.
Microfinance has also been a powerful catalyst for empowering women. See IFC Microfinance in action. The evolution of the industry has been driven by many factors which include the transformation of microfinance providers, the sizable supply gap for basic financial services, the expansion of funding sources supporting the industry and the use of technology.
As the industry has developed, there has been a shift from specialized NGOs to an increasing number of regulated and licensed MFIs which stress that sustainability and impact go hand in hand. Furthermore, The World Bank Group is working with private microfinance institutions and stakeholders to incorporate responsible finance practices into all aspects of business operations.
Since pioneering commercial microfinance in the early s, IFC has continued to lead innovation in microfinance, using developments in technology, financial products, and policy to help financial institutions reach a greater number of people in a more cost-effective way.
IFC achieves this goal by effectively combining investment and advisory services to a range of financial intermediaries. IFC is one of the leading global investors in terms of volume.
IFC also takes an active role in advising microfinance institutions and developing credit bureaus, which are critical to avoid over-indebtedness and support responsible lending practices.
Through its Global Credit Bureau Program, IFC has created or significantly improved credit bureaus in more than 30 countries and advocated for relevant laws in 33 countries.Apr 09, · News about microfinance.
Commentary and archival information about microfinance from The New York Times. We believe that microfinance is a sustainable means of poverty alleviation leading to lasting, holistic development.
Financial tools and training empower entrepreneurs to build businesses, support their families and transform their plombier-nemours.comon: West Van Buren Street, Chicago, , IL. Opportunity focuses on microfinance as a sustainable means of poverty reduction.
Help empower entrepreneurs and transform communities around the plombier-nemours.comon: West Van Buren Street, Chicago, , IL. The latest Tweets from GS Microfinance (@MicrofinanceGS).
Offering affordable financial programs that promote economic wellbeing for people with low incomes, especially women and girls. RTs ≠ endorsement. Australia. Apr 09, · Fixes In Rural Bangladesh, Solar Power Dents Poverty.
Microfinance and small rooftop panels can transform lives in a country where the electric grid reaches just 25 percent of the population. Microfinance’s Midlife Crisis from the Wall Street Journal, Assessing the Role of Microfinance in Fostering Adaptation to Climate Change by Shardul Agrawala and Maëlis Carraro, and Microfinance and Inequality by the Macrothink Institute written by Hisako Kai and Shigeyuki Hamori.