According to RationalStat, the global microfinance market size is estimated at US$ 158 billion in 2022 and is expected to grow at a compound annual growth rate of 11% from 2022 to 2028.

The growing number of microenterprises coupled with government efforts is expected to drive the demand for microfinance across the globe, a comprehensive market research report by RationalStat

RationalStat has recently published an industry and market report on "Global Microfinance Market Analysis and Forecast, 2019-2028" which assesses the regional market based on provider, types of funding, end user, and region. A detailed market analysis report provides an overall historical and future market size in terms of Market Value (US$ Million) with a comprehensive market trend analysis (year-on-year growth). The report offers detailed market projections, market and segmental share analysis, growth of the BFSI industry, an overview of the competition, strategic imperatives, future plans and strategies, key end users, potential growth drivers, and competition analysis for the target players evaluated in the global microfinance market study.

Global Microfinance Market Overview and Market Dynamics

The global microfinance market is expected to witness a robust growth rate of more than 11% during the projected period. This is due to the increasing number of microenterprises, government efforts to promote microfinance, and lower interest rates. Market growth is being positively influenced by the pivotal role played by microenterprises in driving economic development.

Most microfinance institutions focus on offering credit in the form of small working capital loans, sometimes called microloans or microcredit. Low-income individuals, the unemployed, and people without access to any financial services can all benefit from microfinance, a banking service.
Market Drivers and Trends of the Global Microfinance Market

Some of the key factors fueling the demand for microfinance are the growth of SMEs and lower-income groups, including women across rural areas, their potential to maintain household and social living along with government initiatives to promote fair competition and improve the national payment system.

Microfinance institutions often have a social mission to promote financial inclusion and help alleviate poverty. Many investors are drawn to the social impact of microfinance and are willing to invest in the market to achieve both financial and social returns. Moreover, with the growth of digital technologies, microfinance institutions can now reach a wider customer base through digital platforms. This has made microfinance services more accessible and affordable, as customers can now access these services from their mobile devices.

Asia Pacific represents one of the major regional markets for microfinance, constituting an estimated 40% share of the global market. China and India are the major regions fueling the growth of the microfinance market in the Asia Pacific.

Market expansion is increased by the microfinance sector's increased usage of
digital technologies to open up new channels for consumers and increase their revenue opportunities. The microfinance market in Europe and North America is relatively small compared to other regions, but it is growing, driven by factors such as increasing demand for social impact investments and the recognition of the potential of microfinance to support economic development in underserved communities.

Segmental Analysis: Global Microfinance Market

• On the basis of providers, Banks are expected to dominate the market due to their large size and reputation, while NBFCs are gaining popularity due to their specialized focus on microfinance.
• Based on service type, microcredit is expected to gain significant traction in the coming years due to widespread availability and popularity.

Competition Analysis: Regional and local Players Dominate the Market

The global microfinance market is fragmented in nature with various players operating in the market. In the global microfinance market, there are many established companies and startups offering various financial products and services to low-income individuals.

Overall, companies and startups in the global microfinance market are leveraging technology, data analytics, and innovative business models to provide financial services to low-income individuals who may not have access to traditional banking services. These organizations are making a significant impact on poverty reduction and economic development in many regions of the globe.

Moreover, these players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and acquisitions, Partnerships, and collaborations are some of the strategies followed by industry players. Some of the key developments in the Global Microfinance Market include,
• In July 2019, IndusInd Bank Ltd (IBL) took over a stake in Bharat Financial Inclusion Ltd (BFIL) which is indicative of the potential in rural banking and microfinance. IBL is now likely to focus on rural banking as it transfers BFIL's employees and operations into a wholly-owned captive Business Correspondent subsidiary.

Some of the prominent players that contribute significantly to the global microfinance market include Muthoot Finance, Annapurna Finance Ltd, IndusInd Bank Ltd, Kotak Mahindra Bank Ltd, Bandhan Bank Ltd, CDC Group Plc, BRAC International Holdings B.V, Asirvad Microfinance Ltd, Bank Rakyat Indonesia Tbk, Grameen Foundation USA, Kiva Microfunds, 51Give, Al - Barakah Microfinance Bank and BSS Microfinance Ltd among Others.

RationalStat has segmented the global microfinance market on the basis of provider, types of funding, end user, and region.
• Global Microfinance Market Value (US$ Million) and Market Share (2019-2028) Analysis by Provider
o Banks
o Micro Finance Institute (MFI)
o Non-Banking Financial Corporations (NBFC)
• Global Microfinance Market Value (US$ Million) and Market Share (2019-2028) Analysis by Types of Funding
o Local Financing sources
 Local Debt
 Savings
 Local Equity
o International Financing Sources
 International Debt
 International Equity
• Global Microfinance Market Value (US$ Million) and Market Share (2019-2028) Analysis by End User
o Small Enterprises
o Micro Enterprises
o Entrepreneurs/ Self-Employed
• Global Microfinance Market Value (US$ Million) and Market Share (2019-2028) Analysis by Service Type
o Micro Credit
o Leasing
o Micro Investment Funds
o Insurance
o Saving Account
o Checking Account
• Global Microfinance Market Value (US$ Million) and Market Share (2019-2028) Analysis by Region
o North America Microfinance Market
 US
 Canada
o Latin America Microfinance Market
 Brazil
 Mexico
 Rest of Latin America
o Western Europe Microfinance Market
 Germany
 UK
 France
 Spain
 Italy
 Benelux
 Nordic
 Rest of Western Europe
o Eastern Europe Microfinance Market
 Russia
 Poland
 Rest of Eastern Europe
o Asia Pacific Microfinance Market
 China
 Japan
 India
 South Korea
 Australia
 ASEAN (Indonesia, Vietnam, Malaysia, etc.)
 Rest of Asia Pacific
o Middle East & Africa Microfinance Market
 GCC
 South Africa
 Turkey
 Rest of the Middle East & Africa

For more information about this report https://store.rationalstat.com/store/global-microfinance-market/

Key Questions Answered in the Report:

• What will be the market value of the Global Microfinance Market by 2028?
• What is the market size of the Global Microfinance Market?
• What are the market drivers of the Global Microfinance Market?
• What are the key trends in the Global Microfinance Market?
• Which is the leading region in the Global Microfinance Market?
• What are the major companies operating in the Global Microfinance Market?
• What are the market shares by key segments in the Global Microfinance Market?

RationalStat LLC
Kimberly Shaw, Content and Press Manager
sales@rationalstat.com
Phone: +1 302 803 5429

RationalStat is an end-to-end global market intelligence and consulting company that provides comprehensive market research reports along with customized strategy and consulting studies. The company has sales offices in India, Mexico, and the US to support global and diversified businesses. The company has over 80 consultants and industry experts, developing more than 850 market research and industry reports for its report store annually.
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