In a Rapidly Changing Economic Scenario, Here’s What to Expect in the Global Microfinance Market in 2020 & Beyond
The global market for Microfinance is projected to reach US$313.7 billion by 2025, driven by the rising inequality in wealth distribution and the resulting increase in the number of unbanked people.
Global Industry Analysts, Inc. (GIA) launches comprehensive analysis of industry segments, market trends, growth drivers, market share, size and demand forecasts on the global Microfinance market. Report segmentation includes Institution Type (Banks, Non-Banks) ).
7 June 5:12 A.M., California/Marketwire/ - According to the new market research report, the global market for Microfinance is projected to reach US$313.7 billion by 2025, driven by the rising inequality in wealth distribution and the resulting increase in the number of unbanked people. Micro financing is one of the ways to pull people out of extreme poverty. The world's poorest countries are the top markets for microfinance initiatives. Micro financing provides access to microloans to low-income and poverty-stricken households who are not served by traditional financial systems. In contrast to conventional banks that do not provide loans to people with no or insufficient assets and do not offer microloans, microfinance makes it possible for these individuals to access the loan. By 2014, microfinance operations directly benefitted over 130 million people. In addition, over 500 million individuals have been directly and indirectly benefitted from such operations. Microfinance promotes economic development, growth and employment by supporting small businesses and micro-entrepreneurs. Apart from improving living standards of impoverished communities, the concept helps poor in efficiently managing their finances, leveraging economic opportunities and managing risks. Moreover, microfinance operations empower women and may result in more prosperity and stability in families. On the other hand, micro financing is available to just 20% of the 3 billion individuals who qualify as poor.
The global microfinance market is led by banking institutions that are estimated to retain their prime position in the coming years. While banks are anticipated to benefit from their low interest rates, their reluctance to provide loans to SMEs is expected to propel the non-banking sector. The latter segment is bound to also gain from increasing focus on non-bank financial resources like mutual funds. By end-user, the services segment is estimated to post impressive gains on the basis of loans granted. The microfinance market is anticipated to also receive strong contribution from the household and agriculture sectors. Asia-Pacific is projected to make a notable value contribution to the global microfinance market. Asia-Pacific market is anticipated to gain from the confluence of a number of positive factors such as rapid industrialization, strong demand for goods & services, and rising consumer awareness. In addition, the emergence of various Islamic financial services and banks coupled with the issuance of Sukuk is expected to further augment the market growth in the coming years.
Key Competitors Covered in the Report
Al Amana Microfinance
Al-Barakah Microfinance Bank
Annapurna Finance Ltd
Asirvad Microfinance Pvt. Ltd.
Banco do Nordeste do Brasil S.A.
Bandhan Financial Services Pvt. Ltd.
Bank Rakyat Indonesia
BSS Microfinance Ltd.
Jamii Bora Bank
Geographies Analyzed in the Report
Asia-Pacific (Bangladesh, India, Indonesia, Vietnam, Rest of Asia-Pacific)
Rest of World
This latest edition of the research study is conducted and published by Global Industry Analysts, Inc., in close collaboration with senior executives in the industry driving strategy, business development, marketing, sales, product management, technology and operations. All analysis and findings published in the report are based on validated engagements from a total executive pool size of 11472. Among this pool, 1376 direct interactions with domain experts were carried out via our proprietary market research platform, MarketGlass. Among the 344 unique participations, a total of 156 validated responses were received as part of this report's primary research outreach program. We are unique in the industry to provide our clients with the validated list executive engagements and the complete project data stack.
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) (www.strategyr.com) is the world's only influencer driven AI powered market research company. Serving more than 41,000 clients from 36 countries, GIA is recognized for accurate forecasting of markets and industries for 33 years, offering the widest coverage of topics, geographic markets, competitive brands, and companies profiled.
Director, Corporate Communications
Global Industry Analysts, Inc.