Microfinance Market – Overview
The microfinance market is projected to rise at a notable growth rate during the forecast period from 2021 to 2031. The growing onus on governments in emerging economies to create employment to boost economic growth is a key factor fueling the microfinance market. Microfinance is a phenomenon that entails social and banking inclusion with the provision of small loans to poor clients, microinsurance, savings and checking accounts, and payment systems among other services. The aim of microfinancing institutions is to offer simple services for microloans for the world’s unbanked populations, which includes savings, insurance, and payment products. India is the world’s largest microfinance market and is projected to grow at a promising pace in the coming years.
The microfinance market is studied on the basis of service type, provider, and region. Key segments into which the microfinance market is divided based on service type are group and individual micro credit, leasing, micro investment funds, insurance, savings and checking accounts, and others. Key segments into which the microfinance market is divided based on provider are banks and non-banks.
The report on the microfinance market provides a 360-degree analysis of growth trends, opportunities, and competitive landscape of the said market for the 2021 – 2031 forecast period. Analysts identified key segments in the microfinance market along with their projected growth rate for the forecast period from 2021 to 2031. A detailed analysis of the competitive landscape with insights into the growth strategies and market share analysis of key vendors is a highlight of this report.
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Microfinance Market – Key trends
Key factors driving the microfinance market include growth of small and medium enterprises and availability of loan facility for low-income economic groups with the objective to benefit economic growth. The role of governments and financial institutions in developing and underdeveloped nations to provide financial services to help encourage entrepreneurs act on their ideas is creating opportunities in the microfinance market.
The increasing awareness of microfinance supported by access to technology is a key trend fueling the microfinance market. With expanding technological infrastructure, microfinance beneficiaries can make transactions without the need of an intermediate personnel such as microfinance credit officer. The availability of microfinance services in the remotest locations via technology have reduced time and cost constraints, and physical distance from the service outlet is no longer a reason for not availing the services.
Microfinance is increasingly becoming popular among rural women who are engaged in cottage industries with their growing potential toward household income. This is strengthened by government initiatives that promotes equal opportunities of microfinance for all, strengthening of national payment system, and others.
The evolving character of microfinance is another factor attracting growth in the microfinance market. Stakeholders in the microfinance market are engaged in expanding the delivery of microfinance product and services by leveraging the dramatic penetration of mobile technology and mobile payments. With the wide use of smart technologies and professionalism to manage payment, the scope of growth of microfinance market is immense.
Microfinance Market – Competitive Landscape
The presence of some large vendors makes the microfinance market highly competitive. Key players in the microfinance market are expanding their portfolio and undertaking marketing to expand their outreach.
Some key players operating in the microfinance market are Annapurna Finance Ltd, Bandhan Bank Ltd., CDC Group Plc, IndusInd Bank Ltd., Kotak Mahindra Bank Ltd., Asirvad Microfinance Ltd, BRAC International Holdings B.V., Grameen Foundation USA, Kiva Microfunds, and P.T. Bank Rakyat Indonesia Tbk.
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Microfinance Market – Regional Dynamics
Asia Pacific accounts for leading revenue contribution to the microfinance market. China and India are leading contributors to the microfinance market in the region. The role of financial institutions in India to roll out microfinance schemes for loans for low economic classes makes the nation leading in the microfinance market.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.