TechNavio predicts the market to reach US$184.10 billion over the period 2012-2016, with Bandhan Financial Services Pvt Ltd, Compartamos Banco, Grameen Bank and SKS Microfinance among the top vendors.
TechNavio analysts have studied the different forces leading to this impressive growth rate and expect the rising demand for Microfinance, fuelled by increasing demand for MFI (Micro Finance Industry) products to be one of the most impactful drivers for the market’s future.
A senior analyst from TechNavio comments further, “Our study also indicates that the sophisticated regulatory framework alongside growing demand for technology makes East Asia and the Pacific and the Latin America and the Caribbean as the desired destinations for the Microfinance Market.”
In fact, the TechNavio report predicts the East Asia and the Pacific region to grow at a rate of 35 percent; the fastest rate followed by the Latin America and the Caribbean countries with a 32 percent growth rate in between 2012-2016.
Global Microfinance Market by Geographical Segmentation 2012-2016 (US$ billion)
Source: TechNavio Analysis
With over 3,000 MFIs, the market landscapes in East Asia, South Asia, Latin America, and the Caribbean, are highly competitive. This has led to the lowering of interest rates and eventually, lower profits for the vendors. Due to heavy reliance on funding by donors, many of the MFIs have not been able to operate successfully and in many cases have withdrawn their operations as well.
In spite of this, the Global Microfinance market has been growing organically with increasing commercialization of the MFI portfolio, to maintain the right balance between outreach and sustainability.
To determine the scenario for these vendors in the next few years, TechNavio analysts have conducted in-depth research on the buying criteria and trends that will shape this market.
“Following the MFI crisis and the Euro crisis of 2010, most of the governing bodies and regulatory authorities have strengthened their policies and regulations in their respective regions to inculcate discipline and better transparency in the system. Key vendors need to keep up with the latest trends which include molding their social objectives to become financially sustainable,” states TechNavio’s senior analyst and co-author of this report.
Also included in this exhaustive report, is a thorough analysis of the impact of drivers, challenges, and trends of this market featuring data on product segmentations, vendor shares, growth rate by revenue, and an evaluation of the different buying criteria in order of importance.
TechNavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape of the Microfinance Market in the banking industry.
Our analysts obtain the information using a combination of the bottom-up and top-down approaches, besides using in-house market modeling tools. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information on this topic and our upcoming research on https://www.technavio.com/report/global-microfinance-market-2012-2016, please send an e-mail to enquiry@TechNavio.com.
About TechNavio
TechNavio is a leading technology research and advisory company with a global coverage. We focus on emerging technology trends that can shape the market. We identify and explain these trends to our customers to help them take better decisions.
TechNavio models the trends using a mix of quantitative and qualitative tools in its proprietary research methodologies. We build forecasts across market segments and geographies based on the trends identified. These forecasts and analysis are used to help our customers identify new and existing opportunities in their markets. We also help customers assess their competitive position in a changing market scenario.
Decision makers and influencers in sales & marketing, strategy, product and R&D teams rely on research from TechNavio. We have a large and growing base of happy customers worldwide. Our customers include technology suppliers, end users, consulting companies, investment firms and research institutes.
Founded in 2003, TechNavio has about 200 analysts globally. We cover more than 500 technologies across 80 countries. Our analysts are closely monitoring the market every day by talking to all the industry participants. We have proprietary databases that provide us with a complete perspective of the market. TechNavio develops over 2000 pieces of research deliverables every year.
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