WHY THE POOR STILL LACK ACCESS

Even after 30 years of industry effort, there remains a huge gulf between the supply and demand for microfinance services. Millions of families are still without access, and at current growth rates, the gap will not be closed for decades. For microfinance to achieve its potential as a global poverty alleviation tool, the microfinance industry must grow to scale.

The industry’s failure to meet this urgent demand can be attributed to many underlying factors. Most importantly, the majority of the world’s microfinance institutions (MFIs) rely on donor dollars—a limited and difficult-to-scale resource—to finance their operations. And lack of capital is not the only barrier to growth. Limited technology infrastructure, narrow product offerings, human resources challenges, and inefficient business operations all hold back MFIs from reaching their full potential.

> Read more about constraints to MFI growth