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Global Microfinance Market 2016-2020

Global Microfinance Market 2016-2020

About Microfinance

Microfinancing is a type of banking service that is provided to low-income individuals or the unemployed or groups of people that do not have any means to obtain any financial services. The goal of microfinance companies is to provide an opportunity for low-income borrowers to become self-sufficient through saving and borrowing money and providing microinsurance. Microfinance institutions charge interests on loans for their lenders like conventional banking operations. However, these interest rates are lower than those offered by normal banks. Microenterprises are considered as the engine of economic growth for a nation to promote equitable growth and development.

Technavio’s analysts forecast the global microfinance market to grow at a CAGR of 15.56% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global microfinance market for 2016-2020. To calculate the market size, the report considers the the total financing of the micro enterprises in the Americas, Asia Pacific (APAC), and Europe, the Middle East, and Africa (EMEA).The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Microfinance Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Albaraka
  • ASA International
  • Banco do Nordeste
  • Bandhan Financial Services
  • Fundación de la Mujer
Other prominent vendors
  • Access Bank
  • Amhara Credit and Savings Institution
  • Al Amana Microfinance
  • Compartamos Banco
  • Fundación WWB Colombia
  • ICICI Bank
  • Standard Chartered
  • Wells Fargo
Market driver
  • Better risk management practices
  • For a full, detailed list, view our report
Market challenge
  • Difficulty in credit assessment of microenterprises
  • For a full, detailed list, view our report
Market trend
  • New credit scoring approach and collaboration in global marketplace
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Microfinance Market 2016-2020

Technavio recognizes the following companies as the key players in the global microfinance market: Albaraka, ASA, Banco do Nordeste, Bandhan Financial Services, and Fundación de la Mujer.

Other Prominent Vendors in the market are: Amhara Credit and Savings Institution, Al Amana Microfinance, Compartamos Banco, Fundación WWB Colombia, ICICI Bank, Standard Chartered, and Wells Fargo.

Commenting on the report, an analyst from Technavio’s team said: “A key trend spurring growth in this market is the increase in private sector banks across emerging markets. Many private banks provide greater incentives to incur switching costs needed to pursue new businesses in the microenterprise market. Large private firms have been one of the key driving trends for innovation that has increased the global growth for the microenterprises segment in emerging countries that is either unserved or underserved. The primary aim of these private banks is to not only to develop unique products, business solutions, or services but also commercialize themselves and convert innovative microenterprises into viable business ventures with a sustainable edge over others.”

According to the report, the high preference for better risk management practices will be a significant driver spurring the prospects for growth in this market. Banks are increasingly realizing the costs of operational and sales inefficiency, which is reflected in their revenue. As microenterprises become more active in supply chains, their ability to manage risk becomes more important. Investments in risk management is of utmost importance to compete in the global market to ensure compliance or deploying risk-minimizing technologies. This will help increase the transparency beyond the first-tier suppliers.

Further, the report states that difficulty in credit assessment of microenterprises will be a major challenge for this market. Microenterprises are highly sensitive to the economic cycles of the country, particularly because of the limited business diversification and limited capital reserves. Owing to the global economic crisis and the recent Greek crisis, the economies in the developing as well as the developed countries are undergoing a drastic drop in the demand for goods and services. This has severely affected the production volumes of the microenterprises segment. As a result, there has been less demand for financing.

Companies Mentioned

Albaraka, ASA, Banco do Nordeste, Bandhan Financial Services, Fundación de la Mujer, Amhara Credit and Savings Institution, Al Amana Microfinance, Compartamos Banco, Fundación WWB Colombia, ICICI Bank, Standard Chartered, Wells Fargo

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
      • Table Countries covered for market analysis
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Microfinance overview
      • Table Investment in microfinance
      • Table Need for financial services
  • Market landscape
    • Market overview
    • Market size and forecast
      • Table Global microfinance market 2015-2020 ($ billions)
      • Table Reasons for upgrading capital management
      • Table Industry wise market share in microenterprises 2015
      • Table Farm loan information
    • Five forces analysis
      • Table Five forces analysis
  • Geographical segmentation
    • Table Geographical segmentation of global microfinance market 2015
    • Table Geographical segmentation of global microfinance market 2020
    • APAC
      • Table Microfinance market in APAC 2015-2020 ($ billions)
      • Table International Finance Investment and Commerce (IFIC) Bank in microfinance sector
      • Table Healthcare insurance environment in APAC
      • Table Healthcare insurance environment in APAC
    • EMEA
      • Table Microfinance market in EMEA 2015-2020 ($ billions)
    • Americas
      • Table Microfinance market in Americas 2015-2020 ($ billions)
      • Table Health saving account (HSA) contribution limits, deductibles, and out of pocket expenses limit in Americas 2015 and 2016
  • Market drivers
    • Increased technological innovations
    • Better risk management practices
    • High economic growth in emerging markets
    • Development of life microinsurance, health microinsurance, and various kinds of agricultural insurance
      • Table Whole life insurance policy features
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Difficulty in credit assessment of microenterprises
    • Assessing lending risks
    • Business and financial illiteracy
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • New credit scoring approach and collaboration in global marketplace
    • Increase in private sector banks across emerging markets
    • Enterprise resource planning (ERP) solutions
      • Table Advantages of successful implementation of ERP in microenterprises
    • Leveraging modern technologies
    • Leveraging social media channels for better market penetration in microinsurance
      • Table Social media benefits to insurance firms
  • Vendor landscape
    • Competitive landscape
      • Table Benefits of mandatory coverage
      • Table Innovations in customer services
      • Table Factors that drive customer satisfaction
      • Table Customer connectivity
      • Table Microenterprises financing plans through FinTech innovations
    • Other prominent vendors
  • Key vendor analysis
    • Albaraka
    • ASA International
    • Banco do Nordeste
    • Bandhan Financial Services
      • Table Financials of Bandhan
    • Fundación de la Mujer
  • Appendix
    • List of abbreviation
  • Explore Technavio

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