TechNavio recognizes the following companies as the key players in the Global Microfinance Market: Bandhan, Compartamos Banco, Grameen bank, and SKS Microfinance.
Commenting on the report, an analyst from TechNavio’s team said: “Due to the recent financial crisis in India and Mexico, many MFIs have altered their legal structure and turned into companies to float their equity and bonds to be able to generate more funds. This was nothing but a consequence of their high dependence on donors and low sustainability. Lately, MFIs are undergoing the phase of Mission Drift wherein they are molding their social objectives to become financially sustainable. This has given the expected results and has enabled MFIs to become sustainable.”
According to the report, the low income segment, which is the main focus of MFIs, is still largely untapped. Tapping this large unbanked segment is proving to be a tremendous growth driver for MFIs. With the market maturing at a gradually increasing rate, there is a growing demand for credit products.
Further, the report states that one of the key challenges to the Global Microfinance market is political intervention. This was seen in India very recently, when the Microfinance industry was brought down to an abrupt halt by decree. Owing to the financial crisis in 2009-2010, banks and funders have retracted their funding which had resulted in a liquidity crunch for most of the MFIs. Many of them had to withdraw their operations due to high dependency on funding. This has raised an alarm on the sustainability of these organizations.
The report also includes a discussion of the other vendors operating in this market. The other vendors in the market are ACLEDA Bank Plc., ASA, Basix, BRAC, Spandana Sphoorty Financial Limited, and Vietnam Bank for Social Policies.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors. For further information on this report, please visit https://www.technavio.com/report/global-microfinance-market-2012-2016
TechNavio, the market research platform of Infiniti Research Ltd., publishes periodic market research reports on niche and emerging technologies. For more information on our market research, please visit https://www.technavio.com/it-hardware-software-services
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TechNavio Announces the Publication of its Research Report -Global Microfinance Market 2012-2016
