Summary
Microfinance Market Research Report by Service (Group & Individual Micro Credit, Insurance, and Leasing), Providers, Region - Cumulative Impact of COVID-19, Russia Ukraine Conflict, and High Inflation - Global Forecast 2023-2030
The Global Microfinance Market size was estimated at USD 184.86 billion in 2022 and expected to reach USD 202.27 billion in 2023, projecting growth at a CAGR of 10.49% to reach USD 410.78 billion by 2030.
Market Statistics:
The report provides market sizing and forecasts across 7 major currencies - USD, EUR, JPY, GBP, AUD, CAD, and CHF; multiple currency support helps organization leaders to make better decisions. In this report, the years 2018 to 2021 are considered as historical years, 2022 as the base year, 2023 as the estimated year, and years from 2024 to 2030 are considered as the forecast period.
Cumulative Impact of COVID-19:
The COVID-19 pandemic had a profound effect on the microfinance industry. Many businesses have suffered from decreased service demand due to lockdowns and other government restrictions implemented to contain the virus. The COVID-19 impacts reduced revenues for many businesses, resulting in fewer loans being approved for those seeking microfinancing. Furthermore, with unemployment at record levels due to the pandemic, fewer potential borrowers are opting for microloans.
Cumulative Impact of Russia-Ukraine Conflict:
The ongoing conflict between Russia and Ukraine is another major factor impacting microfinance. Heightened tensions between the two countries have caused economic uncertainty, decreased investment activity, and an overall slowdown in economic growth which has declined the customer preference for microfinance as they seek to conserve their capital during this period of uncertainty. Furthermore, with many banks unwilling or unable to lend money due to increased risk associated with investments in these areas, it is difficult for those living in these regions to access credit or take out loans through traditional means.
Cumulative Impact of High Inflation:
High inflation rates across many countries also affect the microfinance market as they make borrowing more expensive and reduce purchasing power among consumers. With prices increasing faster than wages or income levels, it becomes difficult for those looking for financing options through microlenders as their ability to repay loans decreases. Additionally, high inflation can cause instability within economies leading investors away from certain markets, which can further reduce access to credit among potential borrowers relying on such sources of financing.
Market Dynamics:
The market dynamics represent the ever-shifting landscape of the Global Microfinance Market by providing actionable insights into supply and demand levels. Taking such factors into account helps inform strategies, investments, and future developments to capitalize on opportunities or avoid potential pitfalls related to political, geographical, technical, social, and economic conditions. Such market observations also highlight consumer behaviors while influencing both manufacturing costs as well as consumer purchasing decisions.
- Drivers
- Surging need for short-term & small-scale financing among low-income individuals and small enterprise owners
- Government initiatives encouraging the establishment of microfinance institutions and services
- Soaring availability of microfinance services in digital and mobile-based payment models
- Restraints
- High incidence of fraud activities in microfinancing services due to limited internal monitoring
- Opportunities
- Expanding funding opportunities for microfinance startups aiming to develop new software based on AI & Bigdata
- Potential amalgamation of blockchain technology and microfinance services
- Challenges
- Stringent regulations & standards on microfinance concerning reserve requirements, loan loss provisions, and loan documentation
Market Segmentation & Coverage:
- Based on Service, the market is studied across Group & Individual Micro Credit, Insurance, Leasing, Micro Investment Funds, and Savings & Checking Accounts.
- Based on Providers, the market is studied across Banks and Non-Banks.
- Based on Region, the market is studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas is further studied across Argentina, Brazil, Canada, Mexico, and United States. The United States is further studied across California, Florida, Illinois, New York, Ohio, Pennsylvania, and Texas. The Asia-Pacific is further studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The Europe, Middle East & Africa is further studied across Denmark, Egypt, Finland, France, Germany, Israel, Italy, Netherlands, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and United Kingdom.
This research report categorizes the Global Microfinance Market in order to forecast the revenues and analyze the trends in each of the following sub-markets:
Company Usability Profiles:
The report profoundly explores the recent significant developments by the leading vendors and innovation profiles in the Global Microfinance Market, including Access Microfinance Holding AG, Al-Barakah Microfinance Bank, Annapurna Finance (P) Ltd., Asirvad Micro Finance Limited, Belstar Microfinance Limited, Bopa Microfinance, BSS Microfinance Limited, Citigroup, Inc., Fusion Micro Finance Ltd., GC Business Finance, Gojo & Company, Grameen America, JPMorgan Chase & Co., LiftFund, Madura Microfinance Ltd., Microfinance Ireland DAC, Microlend Australia Ltd., Satin Creditcare Network Limited, SPBD Microfinance Holdings (Singapore) Pte. Ltd., and Ujjivan Small Finance Bank Limited.
The report provides insights on the following pointers:
- Market Penetration: Provides comprehensive information on the market offered by the key players
- Market Development: Provides in-depth information about lucrative emerging markets and analyzes penetration across mature segments of the markets
- Market Diversification: Provides detailed information about new product launches, untapped geographies, recent developments, and investments
- Market Trends: Provides comprehensive understanding of the Cumulative Impact of COVID-19, the Russia-Ukraine Conflict, and the High Inflation
- Competitive Assessment & Intelligence: Provides an exhaustive assessment of market shares, strategies, products, certification, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players
- Product Development & Innovation: Provides intelligent insights on future technologies, R&D activities, and breakthrough product developments
The report answers questions such as:
- What is the market size and forecast of the Global Microfinance Market?
- What are the inhibiting factors and impact of COVID-19 shaping the Global Microfinance Market during the forecast period?
- Which are the products/segments/applications/areas to invest in over the forecast period in the Global Microfinance Market?
- What is the competitive strategic window for opportunities in the Global Microfinance Market?
- What are the technology trends and regulatory frameworks in the Global Microfinance Market?
- What is the market share of the leading vendors in the Global Microfinance Market?
- What modes and strategic moves are considered suitable for entering the Global Microfinance Market?
