The Future of Microfinance: Visioning the Who, What, When, Where, Why, and How of Microfinance Expansion Over the Next 10 Years
This paper traces the evolution of microfinance and gives an overview of the global microfinance industry. It presents the experiences of Grameen Bank in extending financial outreach to the poor, and envisions the future of microfinance for the next 10 years.
The paper highlights the need to take institutional and policy measures to ensure that the Millennium Development Goals and the new goals of the Microcredit Summit campaign are achieved on time. It discusses possible developments, challenges and potential solutions with respect to the following aspects of microfinance:
- Expansion of outreach;
- Region- wise development potential;
- Sources of financing such as loans and guarantees, equity participation, savings, securitization, bonds, equity and other investments and wholesale fund/apex institutions;
- Capacity building;
- Legal and regulatory environment;
- Mobility of funds and personnel;
- Interest rate and taxation issues.
The paper states that future growth in outreach of microfinance will largely depend on government efforts to create an enabling environment though appropriate regulatory and legal frameworks.
