Microfinance follows a development approach contrary to traditional approaches in the field. By making loans accessible to clients that would usually be excluded from traditional banking services, it is widely regarded as a powerful tool to fight poverty in developing and transition economies. Granting access to money to poor people, micro-and to small- and medium-sized enterprises (MSME) is a bottom-up approach that stands in contrast to a generally more top-down oriented focus in traditional development economics. The concept is often attributed to the name of Dr. Mohammad Yunus who is a pioneer in this field having founded the Grameen bank already back in 1983 and having received the Nobel price in 2006.
The microfinance sector is nowadays a fast growing industry that no longer sounds like a remote concept but which has entered financial mainstream. In contrast to its beginnings, MFIs (Microfinance Institutions) are not anymore solely built up by NGOs or governmental bodies. The microfinance sector is more and more being commercialized with an ever increasing number of private players entering the markets worldwide. Nevertheless, according to World Bank data, approximately 2.7 billion people worldwide still do not have access to formal financial services.
By investing in MFIs in developing countries, Access Holding is capitalizing on this untapped demand for financial services whilst making an important contribution to general development.
To learn more on the impact micro-lending can have not only on the individual client but also on the community, please continue to our client success stories.