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