Lessons from South Asian MFIs moving up market
Some South Asian microfinance institutions are moving beyond traditional microcredit lending into the small enterprise segment. This article describes four factors pulling MFIs into the new segment: increasing competition for more traditional microfinance clients, market opportunities, the expectation of improved financial performance and the expectation of positive development impact. The article examines lessons from MFIs in Afghanistan, Pakistan, India and Bangladesh, arguing that effective differentiation between the microfinance and small enterprise market, combined with segmentation within the small enterprise market, are central to success. There is no one-size-fits-all lending approach; rather there is a continuum of combinations that need to be refined to align efficiency, client preferences and credit quality. A critical decision at the outset is whether MFIs should set up separate lending departments for small enterprise lending. As a relatively new development for South Asia, the developmental impact and financial performance of small enterprise lending merit more attention and critical analysis.Alam, A. and Matin, I. (2002) BRAC's Microfinance Canvas: Financial Services and Strategic Linkages, BRAC Research and Evaluation Division, Dhaka.
Burki, H.-B. and Shah, M. (2007) The Dynamics of Microfinance Expansion in Lahore, ShoreBank International Ltd. & Pakistan Microfinance Network.
MMB (MicroBanking Bulletin) (2005) MicroBanking Bulletin: 2005 MFI Benchmarks, Microfinance Information Exchange, Inc. (MIX).
MBB (2007) MicroBanking Bulletin Issue No. 14, Spring 2007.
Alam, A. and Matin, I. (2002) BRAC's Microfinance Canvas: Financial Services and Strategic Linkages, BRAC Research and Evaluation Division, Dhaka.
Burki, H.-B. and Shah, M. (2007) The Dynamics of Microfinance Expansion in Lahore, ShoreBank International Ltd. & Pakistan Microfinance Network.
MMB (MicroBanking Bulletin) (2005) MicroBanking Bulletin: 2005 MFI Benchmarks, Microfinance Information Exchange, Inc. (MIX).
MBB (2007) MicroBanking Bulletin Issue No. 14, Spring 2007.
Alam, A. and Matin, I. (2002) BRAC's Microfinance Canvas: Financial Services and Strategic Linkages, BRAC Research and Evaluation Division, Dhaka.
Burki, H.-B. and Shah, M. (2007) The Dynamics of Microfinance Expansion in Lahore, ShoreBank International Ltd. & Pakistan Microfinance Network.
MMB (MicroBanking Bulletin) (2005) MicroBanking Bulletin: 2005 MFI Benchmarks, Microfinance Information Exchange, Inc. (MIX).
MBB (2007) MicroBanking Bulletin Issue No. 14, Spring 2007.
Alam, A. and Matin, I. (2002) BRAC's Microfinance Canvas: Financial Services and Strategic Linkages, BRAC Research and Evaluation Division, Dhaka.
Burki, H.-B. and Shah, M. (2007) The Dynamics of Microfinance Expansion in Lahore, ShoreBank International Ltd. & Pakistan Microfinance Network.
MMB (MicroBanking Bulletin) (2005) MicroBanking Bulletin: 2005 MFI Benchmarks, Microfinance Information Exchange, Inc. (MIX).
MBB (2007) MicroBanking Bulletin Issue No. 14, Spring 2007.
Impact of competition on microfinance institutions: bibliometric analysis and systematic literature review
Nisa, Chaerani
rita, Vive
Chalid, Dony Abdul
Heliyon, Vol. 8 (2022), Iss. 10 P.e10749
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