Global Poverty

Microfinance Is Dead; Long Live Microfinance!

First in a blog series I’m co-authoring resulting from a workshop on the future of microfinance, hosted by Lehigh University’s Martindale Center, which I direct.

First commentary is here; second here; third here, fourth here.

Center for Financial Inclusion Blog

> Posted by Paul DiLeo, Todd A. Watkins, and Anna Kanze

Most foundations and development finance institutions have moved on from microfinance, in search of the leading edge of innovation and impact. They have concluded that their work is done now that leading microfinance institutions (MFIs) have definitively cracked the capital markets with healthy balance sheets and two large, heavily oversubscribed Indian IPOs just in the last year. Meanwhile, impact investors, particularly in the U.S., are divided on whether microfinance is, or ever was, an impact investment. In any case, they prefer to focus their attention on new “disruptive” business models. In impact industry publications, conferences and even terminology, microfinance is dead; yesterday’s solution at best.

View original post 972 more words

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