Microfinance through the Next Decade: Visioning the Who, What, Where, When and How

This paper envisions the future of microfinance and identifies major factors that are driving change in the industry and also discusses the likely impact these forces will have on the shape of things to come. The paper explores four major drivers of change (competition, commercial entry, technology, and enabling environment) which are already unevenly present in all countries, and which the authors believe will continue to evolve and markedly change the way microfinance operates in the next decade.  The paper concludes that:

• The next decade of microfinance will bring new players to the table and will create alliances among what were earlier considered, unlikely partners, who together will continue to reinvent microfinance;
• NGOs will have to reinvent and modernize themselves, while transforming into regulated institutions;
• All those involved in microfinance will have to expand their minds and visions to fully develop the exciting possibilities before us.