The rating agency expects net interest margins for micro finance companies to decline to 80 to 100 basis points. Operating expenses are also likely to increase due to investments to be made on information technology and collections infrastructure by most players.
- South Asia
Microfinance has been hailed as a transformative force for poor households and entrepreneurs in emerging markets. But recent evidence suggests it is not the silver bullet it was once thought to be. Meanwhile, mobile phones have become ubiquitous in most developing countries, and Alexandra Wall, Natasha Beale and Carson Christiano explore whether digital credit can do a better job than microcredit in meeting the needs of the underserved.
Today business accelerator Wayra, backed by O2’s parent company Telefonica, is launching a business accelerator to tackle the poverty premium. Called Fair By Design, Wayra will offer around £70,000 in cash and services in seven small digital businesses aiming to improve access to affordable services.
- Europe & Eurasia