The Commercialization of Microfinance

While many microfinance organizations started as NGOs, there is now a growing movement for them to transform into regulated, for-profit entities. Concurrently, commercial banks, credit unions, and specialized investors are also entering the market. The Commercialization of Microfinance synthesizes case studies from Latin America and beyond, delving into the trends and challenges of converting microfinance institutions into commercial entities. Prepared by ACCION, this book will be useful reading for anyone interested in understanding how the world of microfinance is changing and how that world affects the broader processes of development.

The book is divided into four parts:

  1. A framework for understanding the commercialization of microfinance
  2. Approaches to a commercialized microfinance industry
  3. Commercial entrants into microfinance
  4. Challenges to commercial microfinance

Individual papers include:

  • Journey from NGO to regulated MFI – featuring a number of well known case studies
  • The experience and challenges of commercial bank downscalers
  • Teaching old dogs new tricks – the commercialisation of credit unions
  • Governance and ownership of microfinance institutions
  • The experience of microfinance institutions with regulation and supervision
  • Credit bureaus – a necessity for microfinance?

The section on commercial entrants into microfinance includes studies of FFP (FASSIL) in Bolivia, Corposal and Finansol in Colombia and Mibanco in Peru.

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