Global Microfinance Market Insights and Forecast to 2028

Microfinance Market Report 2028

The global Microfinance market size is projected to reach USD 414980 million by 2028, from USD 184250 million in 2021, at a CAGR of 12.1% during 2022-2028. The increase in microfinance institutions helps developing nations fight poverty and raise the standard of living for the poor, which has a significant positive impact on the Microfinance market expansion. Other factors driving the growth of the Microfinance market include the switch from traditional lending to microfinancing, lower operating costs, and little market risk.  

The increasing adoption of cutting-edge technologies in the microfinance business across emerging countries, including mobile banking, ATMs, POS, and others, is a significant factor that could provide future growth chances for the Microfinance market.

Microfinance Market Trends 

Opportunities in the Microfinance market are provided by governments and financial institutions in emerging and underdeveloped countries to assist finance the execution of entrepreneurs' ideas.

Through microfinance, people can get acceptable, small loans that uphold moral business standards. The implementation of the technique, according to microfinance studies, boosts not only financial accessibility but also household spending, small company investment and profit, and even the enrolment of children in schools. In 2020, 5.4 percent of American households lacked a checking or savings account with a bank or credit union, according to a Federal Reserve survey. Another 13 percent had bank accounts but were underbanked, which required them to turn to alternative sources like payday loans to satisfy their financial obligations. These elements are anticipated to fuel the microfinance market's expansion.

Online financing has experienced enormous growth in recent years due to the rise in smartphone and internet usage across the globe. Since microfinance offers quick affordability for applications, it is regarded as one of the practical and often-used choices for lenders. Many businesses and individuals have started applying for loans online in recent years instead of going through drawn-out lending processes. Additionally, the ease with which borrowers can apply for loans and a variety of additional benefits for lenders, such as automated loan management and quick approval, are encouraging them to shift more of their attention toward digital microfinance and supporting the expansion of the microfinance market.

The microfinance industry is increasingly using digital technology to expand customer channels and income prospects, which is boosting the growth of the microfinance market. Furthermore, it is predicted that enhanced connectivity in developing nations and technological developments in a number of African and Middle Eastern countries will present a lucrative potential for market expansion. Furthermore, emerging nations are opening up new market prospects due to the widespread usage of cutting-edge technology in the microfinance sector, including mobile banking, ATMs, point-of-sale systems, and others. 

Microfinance Market Scope and Size

Asia Pacific is the region from which the microfinance market derives the majority of its revenue. China and India are the two countries that contribute the most to the local microfinance market. Due to the financial institution's involvement in the country's execution of microfinance programs for loans to poor socioeconomic strata, India dominates the microfinance sector.

According to type, one of the most profitable markets is accounting for under $3,000, and according to application, the personal segment is anticipated to be the most profitable.

Segment by Type

• Below $3000
• $3000-$10000
• $10000-25000$
• Above 25000$

Segment by Application

• Personal
• SME

BY COMPANY

• WeBank
• ResponsAbility Investments AG
• Asmitha Microfin
• Utkarsh Micro Finance
• Share Microfin
• Ujjivan
• Spandana Sphoorty Financial
• Bhartiya Samruddhi Finance Limited（BSFL）
• GFSPL
• Suning
• Grameen America
• LiftFund
• Opportunity Fund
• Accion
• Justine Petersen
• Malayan Banking Berhad
• GC Business Finance
• Adie
• DMI
• Microfinance Ireland

BY REGION

• North America
• United States
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Russia
• Nordic Countries
• Rest of Europe
• Asia-Pacific
• China
• Japan
• South Korea
• Southeast Asia
• India
• Australia
• Rest of Asia
• Latin America
• Mexico
• Brazil
• Rest of Latin America
• Middle East & Africa
• Turkey
• Saudi Arabia
• UAE
• Rest of MEA