Global Microfinance Market Share Report 2024, Forecast To 2033
8 Oct, 2024
The microfinance market size has experienced rapid growth in recent years, projected to rise from $193.85 billion in 2023 to $215.51 billion in 2024 at a compound annual growth rate (CAGR) of 11.2%. The historic growth can be attributed to increased usage of digital technology, commercialization and sustainability, an increased focus on responsive lending, improved access to loan facilities, and the rise in the adoption of online lending platforms. In the forecast period, the microfinance market size is expected to reach $330.98 billion in 2028, growing at a CAGR of 11.3%. This growth is driven by evolving regulatory frameworks, a focus on environmental sustainability, rising interest in socially responsible investing, growing demand for microfinance loans, and increasing financial inclusion. Key trends during this forecast period include the integration of cloud computing, biometrics and digital identity, microinsurance and parametric insurance, embedded payments and insurance, and the standardization of digital operations.
Global Microfinance Market Key Driver
The rising number of small and medium-sized enterprises (SMEs) is expected to propel the growth of the microfinance market in the coming years. Small and medium-sized enterprises refer to businesses characterized by their relatively modest scale in terms of revenue, assets, and employee count. The increase in SMEs can be attributed to a surge in entrepreneurial spirit, advancements in technology that lower entry barriers, supportive government policies, and enhanced global market access. Microfinance plays a crucial role in supporting SMEs by providing access to small loans and financial services, which assist in capital acquisition, cash flow management, and risk mitigation. For example, in February 2024, a report published by Startups.co.uk highlighted that new SME businesses surged by 19.5% in 2023, totaling 39,966 establishments, reflecting a 6.5% increase from 2022, while overall incorporations grew by 2% to 778,219 in 2022. Consequently, the increasing number of SMEs is driving the growth of the microfinance market.
Get A Free Sample Of The Microfinance Market ReportGlobal Microfinance Market Segments
The microfinance market covered in this report is segmented –
1) By Service Type: Group And Individual Micro Credit, Leasing, Micro Investment Funds, Insurance, Savings And Checking Accounts, Other Service Types
2) By Providers: Banks, Micro Finance Institutions (MFI), NBFC (Non-Banking Financial Institutions), Other Provider
3) By Purpose: Agriculture, Manufacturing Or Production, Trade And Services, Household, Other Purposes
4) By End-Users: Small Enterprises, Micro Enterprises, Solo Entrepreneurs Or Self-Employed
By Geography:The regions covered in the microfinance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the microfinance market in 2023, and is expected to be the fastest-growing region in the forecast period.
Major Microfinance Industry Players
Bank Rakyat Indonesia (BRI), Oliver Wyman Group, Bandhan Bank Limited, LendingClub Corporation, ASA International Group PLC, Accion International, Annapurna Finance Private Limited, PRASAC Microfinance Institution Ltd., Prosper Marketplace Inc, Madura Microfinance Ltd. , Compartamos Banco, Pro Mujer International, Oikocredit International, Ujjivan Financial Services , Fundación Génesis Empresarial (FGE), Kiva Microfunds, Gojo & Company Inc., FINCA International, Fonkoze Financial Services S.A., Cashpor Micro Credit, Opportunity International, BSS Microfinance Limited, Asirvad Microfinance Limited
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Microfinance Market Overview
Microfinance is a financial service aimed at providing small loans, savings, insurance, and other financial products to individuals or small businesses that lack access to traditional banking services. This service is primarily targeted at low-income populations who do not qualify for conventional bank loans due to lack of collateral, steady employment, or credit history.
Microfinance Global Market Report 2023 provides data on the global microfinance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The microfinance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.