Digital Transformation Driving Growth: Global Microfinance Market Surges at 12.7% CAGR, Set to Reach $488.9 Billion by 2030

DUBLIN, July 26, 2023 /PRNewswire/ -- The "Microfinance: Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.

Global Microfinance Market Expected to Reach $488.9 Billion by 2030

In the post-COVID-19 business landscape, the global microfinance market, which was valued at US$187.3 billion in 2022, is projected to expand significantly and attain a size of US$488.9 billion by 2030. This growth represents a Compound Annual Growth Rate (CAGR) of 12.7% during the analysis period spanning from 2022 to 2030. Among the segments analyzed in the report, the banking sector is expected to perform particularly well, with a projected CAGR of 13.5% and an estimated value of US$285.2 billion by the end of the analysis period.

Europe's Microfinance Market Valued at $13.4 Billion, while Asia-Pacific Expected to Experience a 14.3% CAGR

The microfinance market in Europe is estimated to be worth US$13.4 billion in 2022. Meanwhile, the Asia-Pacific region is expected to see remarkable growth, with a projected market size of US$236.4 billion by 2030, representing a CAGR of 14.3% from 2022 to 2030. Within Europe, Germany's microfinance market is anticipated to grow at a rate of approximately 3.1% CAGR. On the other hand, the Asia-Pacific market will be primarily driven by countries such as Bangladesh, India, Indonesia, and Vietnam, leading to a projected value of US$236.4 billion by 2030.

Select Competitors (Total 186 Featured) -

• Citigroup, Inc.
• Axis Bank Ltd.
• Chicanos Por La Causa, Inc.
• Banco Do Brasil
• BNP Paribas SA
• DCB Bank Ltd.
• Dhanlaxmi Bank Ltd.
• Manappuram Finance Ltd.
• Indusind Bank Ltd.
• Equity Group Holdings Plc
• BlueOrchard Finance S A
• Accion International
• China Zheshang Bank Company Limited
• ACLEDA Bank
• FlexiGroup (New Zealand) Limited

MARKET OVERVIEW

• The COVID-19 pandemic and the looming global recession have significantly impacted the global market, creating new challenges for the economy in 2022 & 2023.
• Despite the challenges, the microfinance industry has shown resilience, with potential to break the cycle of poverty and provide access to the unbanked population.
• The industry has witnessed significant growth in active borrowers and has played a vital role in impact investments and achieving Sustainable Development Goals (SDGs).
• Digitalization, mobile payments, and new technologies are driving the growth of the microfinance market, transforming the industry's landscape.

FOCUS ON SELECT PLAYERS

• The global microfinance industry has several key competitors with varying market presence, including strong, active, niche, and trivial players in 2022.

MARKET TRENDS & DRIVERS

• Microenterprises have emerged as vital drivers of growth for microfinance institutions (MFIs), promoting economic progress.
• Financial inclusion efforts to address the large unbanked population have stimulated the microfinance industry's growth, with a focus on reaching rural borrowers.
• Digitalization and mobile payments have played a significant role in expanding the reach of microfinance, especially in rural areas.
• Advanced technologies such as AI and blockchain are democratizing access to credit, while microinsurance products are providing insurance coverage to low-income customers.
• The microfinance industry is also addressing climate change risks and supporting women entrepreneurs.
• Collaboration between microfinance providers and fintechs is on the rise, while for-profit MFIs and hybrid models draw both opportunities and criticism.

GLOBAL MARKET PERSPECTIVE

CHINA

• Microfinance plays a critical role in enabling financial inclusion in China, with both banks and non-banks offering micro-loans to various end-users.

EUROPE

• Microfinance in Europe has a significant presence, with banks and non-banks contributing to annual lending for small enterprises, self-employed individuals, and microenterprises.

ASIA-PACIFIC

• In Asia-Pacific, countries like Bangladesh, India, Indonesia, Vietnam, and others are witnessing notable growth in microfinance, focusing on financial inclusion and small enterprises' support.

LATIN AMERICA

• Latin America's microfinance market has strong and active competitors, contributing to lending for small enterprises, self-employed individuals, and microenterprises.

REST OF WORLD

• The rest of the World sees various microfinance institutions, both banks and non-banks, offering loans to support small enterprises, self-employed individuals, and microenterprises.

CONCLUSION

• The microfinance industry continues to show resilience amidst global challenges, playing a vital role in economic progress, financial inclusion, and poverty alleviation.
• Advancements in technology and strategic collaborations are driving market growth, providing hope for a brighter and more inclusive future for the industry.

For more information about this report visit https://www.researchandmarkets.com/r/ac8fug

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