Global Microfinance Market Report 2022: The Large Unbanked Population and Focus on their Financial Inclusion to Stimulate Microfinance Industry

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Mar 28, 2022, 16:15 ET

DUBLIN, March 28, 2022 /PRNewswire/ -- The "Microfinance - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Microfinance Market to Reach $304.3 Billion by 2026

The global market for Microfinance estimated at US$156.7 Billion in the year 2020, is projected to reach a revised size of US$304.3 Billion by 2026, registering a compounded annual growth rate (CAGR) of 11.9% over the analysis period.

Microfinance focuses on provisioning of microloans to low-income and unemployed people who do not have access to traditional financial services. Microfinance encompasses a broad range of services including loans, savings, payment and insurance to help the unbanked population in achieving growth and becoming self-sufficient.

Following the implementation of the Sustainable Development Goals (SDGs) in 2016, the microfinance industry has been focusing efforts on promoting access not just to credit, but also to agriculture, health, housing, education, energy, and education.

Asia-Pacific represents the largest regional market for Microfinance, accounting for an estimated 42.5% share of the global total. The market is projected to reach US$159.6 Billion by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 13.6% over the analysis period.

The global microfinance market forecast to witness a strong growth rate in the upcoming years due to increasing number of microenterprises, government efforts to promote microfinance, and lower interest rates. Market growth is being positively influenced by the pivotal role played by microenterprises in driving economic development.

Some of the major factors supporting the market expansion are growth of SMEs and lower-income groups, including women across rural areas, their potential to maintain household and social living along with government initiatives to promote fair competition and improve the national payment system.

While efforts to serve socially marginalized individuals with quality financial services is driving growth, enhanced risk management, increasing focus on micro-insurance and initiative to raise consumer awareness are creating new growth avenues.

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

Impact of COVID-19 Pandemic and Looming Global Recession
COVID-19 Impact on the Microfinance Industry
Financial Difficulties Facing Microfinance Institutions Worldwide Due to COVID-19 Outbreak
Microfinance: Holding Potential to Break the Cycle of Poverty
Microfinance Functioning
Key Principles Related to Microfinance
Key Benefits and Drawbacks of Microfinancing
Microfinance Market: Focus on Providing Access to the Unbanked and Alleviate Property Propels Growth
Active Borrowers of Microfinance Institutions Continue to Grow
Borrower Mix in MFIs
World Brands
Recent Market Activity

2. FOCUS ON SELECT PLAYERS (Total 103 Featured)

51Give
Al Amana Microfinance
Al-Barakah Microfinance Bank
Annapurna Finance (P) Ltd
Asirvad Microfinance Pvt. Ltd.
Banco do Nordeste do Brasil S.A.
Bank Rakyat Indonesia
BRAC
BSS Microfinance Ltd.
Grameen Foundation
Kiva

3. MARKET TRENDS & DRIVERS

As Important Growth Mechanisms for Economic Progress, Microenterprises Emerge as Vital Driver of Growth for MFIs
The Large Unbanked Population and Focus on their Financial Inclusion to Stimulate Microfinance Industry
Top Factors Cited as Barrier to Account Ownership
Changing Business Landscape Drives Microenterprises to Review Strategies
Microfinance Presents Powerful Tool for Small Businesses & Entrepreneurs to Access Capital
Microfinance Industry's Growing Role in Impact Investments and Achievement of SDGs
Growing Importance of Digitalization for Traditional MFIs
Rising Adoption of New Technologies to Push Market Growth
Mobile Payments Transform Microfinance Industry Landscape
Mobile Technology to Play a Vital Role in Expanding Reach of Microfinance
Going Digital Represents Inevitable Move for Microfinance Institutions
Microfinance Industry Leverages Big Data Analytics to Enable Financial Inclusion
Digitization Raises Data Security Concerns
Digital Technologies Shape Rural Microfinance Market
Enhancing Equity and Accessibility of Digital Microfinance for the Rural Families
Artificial Intelligence Poised to Transform the Future of Microfinance
Growing Significance of Blockchain-based Microfinance Finance
Huge SME Financing Gap Boosts Need for Blockchain-based Microfinance Solutions
Islamic Microfinance Emerges as a Vital Tool for Poverty Alleviation in Islamic Nations
Large Commercial Banks Venture into Microfinance Market, Presenting Opportunities and Challenges for Existing Players
Microinsurance Products: Providing Insurance Coverage to Low Income Customers
Addressing the Risks of Climate Change with Microfinance
Rising Carbon Dioxide Emissions an Indication of Climate Change
Microfinance along with Macrofinance Holds Critical Significance in Financial Realm
Emergence of For-Profit Microfinance Institutions Draws Criticism
Microfinance Institutions to Embrace Hybrid Model
Microfinance Providers to Collaborate with Fintechs
Key Issues Faced by Microfinance Industry
Notable Microfinance Networks: A Review