August 6, 2018

With a Steady Growth Rate, Microlending Continues to Push the Envelope for Global Financial Inclusion

Financial inclusion forms an integral part of the Sustainable Development Goals set by the UN. With over 1.8 billion adults around the world lacking the access to basic financial services, there is a severe need in measures enabling the unbanked to access financial services. Microlending is one of the crucial drivers of change in the quest for financial inclusion. By serving those at the bottom of the pyramid, microlending fills a significant gap in the financial services landscape of developing nations. Microlending enables underserved groups of the population, and micro-businesses — predominantly in the rural areas — to gain access to credit to meet their financial needs. Microfinance institutions(MFIs), in particular, are driving the charge to extend credit to the underserved/unserved population across regions. Traditional financial institutions, with their focus on high-value, high-margin businesses, on the other hand, have always found it challenging to cater to the needs of individuals…

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