STATUS OF THE INDUSTRY

  • The microfinance market has grown substantially but remains highly underpenetrated.

  • The following trends in the microfinance industry are enhancing financial inclusion and are expected to continue:

    • Transformation of non-profit microfinance institutions into regulated, for-profit financial institutions and banks

    • Use of technology and branchless banking to increase outreach and reduce transaction costs

    • Consolidation

    • Downscaling of traditional financial institutions into the micro and SME sectors

    • Product development and diversification