RationalStat has released market and industry reports regarding „Global Microfinance Market Analysis and Forecast, 2019-2028“ which analyzes the regional market according to the funding provider, types of funding and end users, the location. The report is a thorough analysis of the market. It gives an overall historical and future market’s size measured in market value (US$ million) along with a complete market assessment (year-on-year increase). The report provides extensive market projections, segmental and market share analysis, the growth of the BFSI sector, a comprehensive overview of competition, strategic imperatives, plans for the future and strategies, major consumers, possible growth factors, and competitive analysis for the companies analyzed in the microfinance global market research.
Global Microfinance Market Overview and Market Dynamics
The microfinance market in the world is predicted to see an impressive increase of more than 11% over the forecast period. The reason for this is the growing amount of microenterprises, the government’s efforts to encourage microfinance and lower interest rates. The growth of markets is positively affected by the crucial importance of microenterprises the development of economic growth.
The majority of microfinance institutions concentrate on providing loans in the shape of small, working capital loans, often referred to as microloans and microcredit. People with low incomes, those who are unemployment-free, and people who don’t have access to financial services may all benefit from microfinance, which is a financial service that is a bank.
Market Drivers and Trends of the Global Microfinance Market
Some of the key factors fueling the demand for microfinance are the 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.
Microfinance institutions often have a social mission to promote financial inclusion and help alleviate poverty. Many investors are drawn to the social impact of microfinance and are willing to invest in the market to achieve both financial and social returns. Moreover, with the growth of digital technologies, microfinance institutions can now reach a wider customer base through digital platforms. This has made microfinance services more accessible and affordable, as customers can now access these services from their mobile devices.
Asia Pacific represents one of the major regional markets for microfinance, constituting an estimated 40% share of the global market. China and India are the major regions fueling the growth of the microfinance market in the Asia Pacific. Market expansion is increased by the microfinance sector’s increased usage of digital technologies to open up new channels for consumers and increase their revenue opportunities. The microfinance market in Europe and North America is relatively small compared to other regions, However it is growing, driven by factors such as increasing demand for social impact investments and the recognition of the potential of microfinance to support economic development in underserved communities.
Segmental Analysis: Global Microfinance Market
- On the basis of providers, Banks are expected to dominate the market due to their large size and reputation, while NBFCs are gaining popularity due to their specialized focus on microfinance.
- Based on service type, microcredit is expected to gain significant traction in the coming years due to widespread availability and popularity.
Competition Analysis: Regional and Local Players Dominate the Market
The global microfinance market is fragmented in nature with various players operating in the market. In the global microfinance market, there are many established companies and startups offering various financial products and services to low-income individuals.
Overall, companies and startups in the global microfinance market are leveraging technology, data analytics, and innovative business models to provide financial services to low-income individuals who may not have access to traditional banking services. These organizations are making a significant impact on poverty reduction and economic development in many regions of the globe.
Moreover, these players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and acquisitions, Partnerships, and collaborations are some of the strategies followed by industry players. Some of the key developments in the Global Microfinance Market include,
- In July 2019, IndusInd Bank Ltd (IBL) took over a stake in Bharat Financial Inclusion Ltd (BFIL) which is indicative of the potential in rural banking and microfinance. IBL is now likely to focus on rural banking as it transfers BFIL’s employees and operations into a wholly-owned captive Business Correspondent subsidiary.
Some of the prominent players that contribute significantly to the global microfinance market include Muthoot Finance, Annapurna Finance Ltd, IndusInd Bank Ltd, Kotak Mahindra Bank Ltd, Bandhan Bank Ltd, CDC Group Plc, BRAC International Holdings B.V, Asirvad Microfinance Ltd, Bank Rakyat Indonesia Tbk, Grameen Foundation USA, Kiva Microfunds, 51Give, Al – Barakah Microfinance Bank and BSS Microfinance Ltd among Others.
RationalStat has segmented the global microfinance market on the basis of provider, types of funding, end user, and region.
- Global Microfinance Market Value (US$ Million) and Market Share (2019-2028)Analysis by Provider
- Banks
- Micro Finance Institute (MFI)
- Non-Banking Financial Corporations (NBFC)
- Global Microfinance Market Value (US$ Million) and Market Share (2019-2028)Analysis by Types of Funding
- Local Financing sources
- Local Debt
- Savings
- Local Equity
- International Financing Sources
- International Debt
- International Equity
- Global Microfinance Market Value (US$ Million) and Market Share (2019-2028)Analysis by End User
- Small Enterprises
- Micro Enterprises
- Entrepreneurs/ Self-Employed
- Global Microfinance Market Value (US$ Million) and Market Share (2019-2028)Analysis by Service Type
- Micro Credit
- Leasing
- Micro Investment Funds
- Insurance
- Saving Account
- Checking Account
- Global Microfinance Market Value (US$ Million) and Market Share (2019-2028)Analysis by Region
- North America Microfinance Market
- US
- Canada
- Latin America Microfinance Market
- Brazil
- Mexico
- Rest of Latin America
- Western Europe Microfinance Market
- Germany
- UK
- France
- Spain
- Italy
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe Microfinance Market
- Russia
- Poland
- Rest of Eastern Europe
- Asia Pacific Microfinance Market
- China
- Japan
- India
- South Korea
- Australia
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa Microfinance Market
- GCC
- South Africa
- Turkey
- Rest of the Middle East & Africa
- North America Microfinance Market
- Local Financing sources
For more information about this report https://store.rationalstat.com/store/global-microfinance-market/
Key Questions Answered in the Report:
- What will be the market value of the global microfinance market by 2028?
- What is the market size of the global microfinance market?
- What are the market drivers of the global microfinance market?
- What are the key trends in the global microfinance market?
- Which is the leading region in the global microfinance market?
- What are the major companies operating in the global microfinance market?
- What are the market shares by key segments in the global microfinance market?
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