Microfinance

Microfinance is a model being applied in developing nations as a means of boosting local economies, with hopes of growing the global market.¹ There are 2 billion people around the world who do not have a bank account, or lack the technology they need to access a financial institution, over 50 percent of which cite that their primary reason for not having a bank account is not having enough money.² Microfinance institutions grant small business loans to individuals who would otherwise be unable to utilize a traditional bank services.³ They can also provide forms of insurance and savings accounts.⁴ An estimated 500 million individuals worldwide have received microfinance services,⁵ many are women from rural regions, accounting for 84 percent of microfinance borrowers in 2016.⁶