Microfinance in Latin America and the Caribbean: Past, Present and Future

This presentation of microfinance trends in Latin America and the Caribbean (LAC) discusses the evolution of microfinance in the region, institutional and regulatory frameworks, impact of microfinance on the poor, Multilateral Investment Fund's (MIF) role in microfinance in LAC, and MIF's next generation projects in the region.The presentation states that microfinance in LAC has demonstrated a dramatic and consistent growth in volume and clients. Lending volumes have increased from USD 1.2 billion in 2001 to USD 18.9 billion in 2011, while number of borrowers has increased from 1.8 million in 2001 to 14.9 million in 2011. Number of depositors has grown even faster than the number of borrowers. Conclusions include:

• Microfinance sector in LAC is healthy despite global financial turmoil;
• Deposits are growing as rapidly as loans;
• MFIs remain focused on microenterprises as clients;
• Microfinance interest rates have dropped substantially in the region;
• MFI clients in LAC are a mix of poor and low-income populations;
• More research is needed on impact;
• Next generation MIF projects are testing MFIs as platforms for additional microfinance services such as microsavings, microinsurance, remittances, and government payments.