Global Microfinance Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Market Overview

of Global Microfinance market:
The latest research study on the global Microfinance market finds that the global Microfinance market reached a value of USD 218317.95 million in 2022. It’s expected that the market will achieve USD 447764.78 million by 2028, exhibiting a CAGR of 12.72% during the forecast period.

Microfinance is a financial service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. Microfinance allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices.

Influence of COVID-19 Outbreak on Microfinance Industry Development

Four key ways in which MFIs have been responding to the conditions imposed by COVID-19
Offering leniency to clients: Some 85 percent of MFIs are implementing some kind of leniency facility in response to the pandemic, while almost two-thirds are either issuing a moratorium or restructuring loans to provide breathing space for borrowers suffering from declines in incomes. Almost half of the MFIs surveyed are providing a moratorium to those who ask for it, while 14 percent are providing a blanket moratorium for all of their clients.

Cutting back on lending: More than two-thirds of MFIs have lowered the amount they lend to clients. And significantly so, with two-thirds of those cutting by half and around 10 percent ceasing disbursements of loans entirely. Although not confirmed, possible reasons for the drawdown is to lower client demand, higher risk, lower risk tolerance and tighter regulations.

Flexible staffing arrangements: Less than one-sixth of all MFIs have closed branches or issued staff redundancies. The majority, meanwhile, have boosted flexibility measures, with more than half allowing staff to work from home and 41 percent lowering staff working hours or placing them on paid or unpaid leave.

Scaling up remote channels: Despite lockdown measures being in place, MFIs are bolstering their remote channels to reach customers. Around one-third of MFIs have expanded call-centre operations or digital channels, and slightly less than one-third have implemented new digital channels. And around 40 percent of MFIs are reported to be doing “at least some” transactions over digital channels, although just one in seven are conducting 30 percent of transactions digitally, and a sizeable one-quarter are not doing any digital transactions at all.

Indeed, with the pandemic seemingly ushering the world into greater use of digital channels, it would seem reasonable to assume that the microfinance sector will follow in the same mould to continue serving customers.

SWOT Analysis

Access to those with little or no assets, especially women and girls Banks simply won't extend loans to those with little or no assets, and generally don't engage in the small size of loans typically associated with microfinancing. Microfinancing is based on the philosophy that even small amounts of credit can help end the cycle of poverty. Many women and girls have trouble accessing formal financial institutions as they don't have appropriate identification or certification of land and house ownership. But Microfinance can avoid this kind of problem. Therefore, this will become the growth driver of the Microfinance market.

A beneficial impact on the local economy and the development of education and medical resources
Even a small working capital loan of 100 USD can be enough to launch a small business in a developing country that could help the individuals pull themselves and their family out of poverty. These small businesses can help create new employment opportunities, which has a beneficial impact on the local economy. And families receiving microfinancing are less likely to pull their children out of school for economic reasons and more likely to have resources to pay for school fees or health services. This has greatly promoted the development of education and medical resources. These factors will become the driving force for the growth of the Microfinance market.

Region Overview:
From 2023-2028, Asia is estimated to witness robust growth prospects.

Company Overview:
Bank Rakyat Indonesia, Bandhan, BRAC, Bharat Financial Inclusion (SKS) and Grameen Bank (Capital One) are the five key players in the global Microfinance market. These companies have shown consistent growth in revenue, larger volumes of sales and a prominent presence in terms of share in the global Microfinance market in the past 5 years.

Bank Rakyat Indonesia (BRI) offers a whole range of banking products and services, which include saving products, loan products (particularly micro credit, small commercial loans and consumer credit), e-banking, international business services and Islamic (Sharia) banking.

Bandhan Bank started with 501 branches, 50 ATMs and 2,022 Banking Units on day one. Presently, Bandhan Bank has 4,701 banking outlets Pan-India serving more than 2.08 crore customers. The bank has mobilised deposits more than Rs. 66,127.7 crores and its total advances stand at Rs. Bandhan started its microfinance operations from Bagnan, a small village 60 km from Kolkata. The model followed was individual lending through group formation. In 18 years, Bank has presence in 34 states and union territories with special focus on the eastern and underdeveloped states of Northeast India.

Segmentation Overview:
Among different product types, Group and Individual Micro Credit segment is anticipated to contribute the largest market share in 2028.

Application Overview:
By application, the Banks segment occupied the biggest share from 2018 to 2022.

The report covers a research time span from 2018 to 2029; combines extensive quantitative analysis and exhaustive qualitative analysis; presents not only an overview of the global Microfinance market in metrics of sales, revenue, growth rate, but also a deeper dive into the segmented market by region, product type and downstream industry, showing the readers a clear and distinct picture of how the market is distributed from different perspectives.

For competitive landscape, prominent players with considerable market shares are comprehensively analyzed in this report. With information regarding the concentration ratio and detailed data reflecting the market performance of each player shared, the readers can acquire a holistic view of the competitive situation and a better understanding of their competitors.

As the COVID-19 takes over the world, we are continuously tracking the changes in the markets. We analyzed the impact of the pandemic in detail, along with other key factors, such as macro-economy, regional conflicts, industry related news and policies. Meanwhile, market investment scenario, technology status and developments, supply chain challenges, among other essential research elements are all covered.

Research Scope
This report provides an overview of the global Microfinance market and analyzes the segmented market by product type, downstream industry, and region, presenting data points such as sales, revenue, growth rate, explaining the current status and future trends of the Microfinance and its sub-markets in an intuitive way.

Key Companies in the global Microfinance market covered in Chapter 3:
MBK Ventura
SHARE
AccessHolding
Accion International
IDFC Bharat Ltd (GV)
Lead Foundation
Shakti
Al Tadamun
Madura Micro Finance
SIDBI
Banco W
GFSPL
Bharat Financial Inclusion (SKS)
CARD Bank
FINCA International
Al Amana Microfinance
BRAC
Spandana
BURO Bangladesh
Bank Rakyat Indonesia
Jamii Bora
Amhara Credit & Savings Institution
Jagorani Chakra Foundation
Bandhan
Compartamos Banco
Banco Do Brasil
ASA Philippines
Enda
AMK
Grameen Bank (Capital One)
Tanmeyah
Kiva
VFS

In Chapter 4 and Chapter 14.2, on the basis of types, the Microfinance market from 2018 to 2029 is primarily split into:
Group and Individual Micro Credit
Leasing
Micro investment Funds
Insurance
Savings and Checking Accounts
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Microfinance market from 2018 to 2029 covers:
Banks
Non-banks

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:
North America (United States, Canada)

Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)

Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)

Latin America (Brazil, Mexico, Argentina)

Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)

Key Factors Considered

COVID-19
Amid the COVID-19 crisis, the Microfinance market has definitely taken a hit. The report describes the market scenario during and post the pandemic in the vision of upstream raw materials, major market participants, downstream major customers, etc. Other aspects, such as changes in consumer behavior, demand, transport capacity, trade flow under COVID-19, have also been taken into consideration during the process of the research.

Regional Conflict / Russia-Ukraine War
The report also presents the impact of regional conflict on this market in an effort to aid the readers to understand how the market has been adversely influenced and how it’s going to evolve in the years to come.

Challenges & Opportunities
Factors that may help create opportunities and boost profits for market players, as well as challenges that may restrain or even pose a threat to the development of the players, are revealed in the report, which can shed a light on strategic decisions and implementation.

Chapter Outline

Chapter 1 starts the report with a brief overview of the research scope, as well as the definitions of the target market and the subdivisions.

Chapter 2 integrates and sketches the research findings and conclusions in a clear and explicit way.

Chapter 3 presents the competitive landscape by displaying the sales, revenue, and market shares of the top players. It also profiles the major market participants with their business introductions, sales, price, revenue, gross, growth rates, etc.

Chapter 4 breaks down the market by different product types and shares data correspondingly with the aim of helping the readers know how the market is distributed by type.

Chapter 5 segments the market by downstream industry, with data covers sales, revenue, and growth rate tracing back to 2018.

Chapter 6 is the analysis of the whole market industrial chain, ranging from upstream raw materials to downstream customers, with regional conflicts taken into consideration.

Chapter 7 elaborates on market dynamics. Factors that drive, challenge, or restrain the market are all listed, together with industry news, opportunities, impacts of COVID-19, and SWOT analysis.

Chapter 8 shows the breakdown data at the regional level, which enables the readers to picture the regional competitive pattern of the market and learn about the revenue, sales, and market share of all the major regions.

Chapter 9-13 focus on each and every of the major region, specifically, North America, Europe, Asia Pacific, Latin America, Middle East & Africa. Sales, price, revenue, gross, gross margin, among others, will be all be presented.

Chapter 14 forecasts the future trend of the market not only as a whole but also from the perspective of all segments.

Years considered for this report:

Historical Years:

2018-2022

Base Year:

2022

Estimated Year:

2023

Forecast Period:

2023-2029