Microfinance

Global Microfinance Market to Reach US$506.0 Billion by 2030

The global market for Microfinance estimated at US$250.4 Billion in the year 2024, is expected to reach US$506.0 Billion by 2030, growing at a CAGR of 12.4% over the analysis period 2024-2030. Small Enterprises, one of the segments analyzed in the report, is expected to record a 12.2% CAGR and reach US$201.9 Billion by the end of the analysis period. Growth in the Solo EntrEpreneurs / Self-employed segment is estimated at 14.2% CAGR over the analysis period.

Global Microfinance Market - Key Trends & Drivers Summarized

Microfinance refers to the provision of financial services, including small loans, savings accounts, insurance, and payment systems, to low-income individuals and small businesses that typically lack access to traditional banking services. Microfinance institutions (MFIs) aim to empower economically disadvantaged populations by providing them with the financial resources needed to start or expand small businesses, improve household incomes, and achieve financial independence. Microfinance plays a crucial role in poverty alleviation, economic development, and social inclusion by enabling underserved communities to participate in the formal financial system and build sustainable livelihoods.

The development of microfinance has been driven by the recognition of financial inclusion as a key factor in economic development and poverty reduction. Innovations in microfinance models, such as group lending, mobile banking, and digital financial services, have enhanced the accessibility and efficiency of microfinance. Group lending, where small groups of borrowers collectively guarantee each other`s loans, has proven effective in mitigating risks and fostering community support. The advent of mobile banking and digital financial platforms has revolutionized microfinance by reducing transaction costs, expanding reach, and improving service delivery. These advancements have enabled MFIs to serve remote and underserved areas more effectively, promoting financial inclusion on a broader scale.

The growth in the microfinance market is driven by several factors. Firstly, the increasing emphasis on financial inclusion and poverty alleviation is boosting the demand for microfinance services. Secondly, advancements in digital technology and mobile banking are enhancing the accessibility and efficiency of microfinance. Thirdly, supportive regulatory frameworks and government initiatives promoting microfinance are driving market growth. Additionally, the rising awareness of the social and economic benefits of microfinance is encouraging investments and partnerships in this sector. Lastly, the expansion of microfinance into new regions and the diversification of services, including microinsurance and micro-savings, are further propelling market growth, ensuring that more individuals and small businesses can access the financial resources they need to thrive.

SCOPE OF STUDY:

The report analyzes the Microfinance market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Institution Type (Banks, Non-Banks); End-User (Small Enterprises, Solo Entrepreneurs / Self-Employed, Micro Enterprises)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 178 Featured) -

• Accion International
• Al Amana Microfinance
• Al-Barakah Microfinance Bank
• Annapurna Finance (P) Ltd
• Asirvad Microfinance Pvt. Ltd.
• Banco do Nordeste do Brasil S.A.
• Bandhan Bank
• Bank Rakyat Indonesia
• BRAC International
• BSS Microfinance Ltd.
• FINCA International
• Fusion Micro Finance Ltd.
• Grameen Foundation
• IndusInd Bank Limited
• Kiva
• Manappuram Finance Limited.
• Opportunity International

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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