Allied Market Research
Loading...
0

Microfinance Market Expected to Reach $496.90 Billion By 2030

 

Report Code : A06004

quote Various micro & small business have shut their operations due to growing loss in various fields which has affected the cash flow of individuals and business enterprises are some of the major challenges for microfinance companies during the pandemic situation. quote

Pramod Borasi
Research Analyst, BFSI at Allied Market Research

Get 20% Free Customization In This Report
Follow us on Social Media:       
 

According to a recent report published by Allied Market Research, titled, Microfinance Market by Provider and End User: Global Opportunity Analysis and Industry Forecast, 2021-2030,”. The global microfinance market was valued at $178.84 billion in 2020, and is projected to reach $496.90 billion by 2030, growing at a CAGR of 10.8% from 2021 to 2030.

Microfinance is a type of financial service provided to people looking to lend money to earn potentially high returns and borrowers who have no access to financial services such as banks or credit unions. Microfinance can be done to single microloans, and to diversify risk exposure, others invest across a portfolio of microloans. The services in the market are designed to become more affordable to poor and socially marginalized customers, households to have a wide variety of high-quality financial products and services, and to help them become self-sufficient.

COVID-19 Impact Analysis

Furthermore, during the COVID-19 outbreak, the microfinance market has experienced massive decline in revenue. For instance, in India, the second wave of the COVID-19 pandemic has drastically reduced repayment collection efficiencies in the microfinance sector, according to a statement by industry association Sa-Dhan. In addition, the collections have dropped upto 10%-20% in April-May 2021, as lockdowns were imposed in various key states across the country.

By provider, the banks segment acquired the major share of the microfinance market. The banks are adopting microfinance platforms significantly to support rise in consumer needs. The microfinance platforms have helped in filling existing gaps in financial services and increased efficiency for better customer experience, thus driving the market growth.

Region-wise, Asia-Pacific dominated the microfinance industry in 2020 and is expected to grow at the highest CAGR during the forecast period. This is attributed to surge in surge in government initiative to reduce poverty and to upsurge the living standard of the people, which is becoming some of the major microfinance market trends. Moreover, a large group of population lives in the rural areas where banking services are limited and therefore, microfinance plays an important role in providing finance to the population. In addition, there are three types of sources of microfinance, formal institutions (i.e., rural microfinance banks and cooperatives), semiformal institutions (i.e., nongovernment organizations), and informal sources (i.e., money lenders and shopkeepers).

In the wake of COVID-19 pandemic, microfinance organizations have experienced a moderate revenue growth. Moreover, revenue of the microfinance sector is more likely to remain under pressure even post lockdown, as social distancing norms are likely to continue, which discourages usage of mass transit systems. Conversely, decrease in physical banking among industry verticals is expected to positively impact the growth of the microfinance market. Thus, these factors promoted the growth of the microfinance market size during the pandemic situation.     

Key Findings Of The Study

  • On the basis of provider, the Micro Finance Institute (MFI) segment is expected to exhibit the fastest microfinance market growth rate during the forecast period.
  • Based on end user, the small enterprises segment led the highest microfinance market share, in terms of revenue in 2020.
  • By region, Asia-Pacific generated the highest revenue in 2020.  

The key players operating in the microfinance market analysis include Annapurna Finance (P) Ltd, Bank Rakyat Indonesia (BRI), Bandhan Bank, CDC Small Business Finance, Cashpor Micro Credit, Grameen America, Grameen Bank, Kiva, Madura Microfinance Ltd., and Pacific Community Ventures Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Need More Information

pr-det-talk Talk to David (Europe)

pr-det-talk Talk to Sona Padman (Americas)

5933 NE Win Sivers Drive #205,
Portland, OR 97220 United States

pr-det-phone Toll Free: +1-800-792-5285

pr-det-phone UK: +44-845-528-1300

pr-det-phone Hong Kong: +852-301-84916

pr-det-phone India (Pune): +91 2066346060

pr-det-phone Fax: +1(855) 550-5975

pr-det-phone help@alliedmarketresearch.com

 

For Media Inquiries, Please Contact

Tushar Nagose
Communications Officer
Allied Market Research
Contact Toll Free: +1-800-792-5285
Drop us an email at
media@alliedmarketresearch.com

 
 

First time buyer?
Check offers and discount on this report
To get this report

 
Click Here
 
 

quote Microfinance Market By Provider (Banks, Micro Finance Institute (MFI), NBFC (Non-Banking Financial Institutions), and Others) and End User (Small Enterprises, Micro Enterprises, and Solo Entrepreneurs or Self-Employed): Global Opportunity Analysis and Industry Forecast, 2021–2030 quote

View Report
 
 
Avenue Video Loading...

Avenue: Entire Library membership of Allied Market Research Reports at your disposal

  • Avenue is an innovative subscription-based online report database.
  • Avail an online access to the entire library of syndicated reports on more than 4,033 niche industries and company profiles on more than 12,953 firms across 11 domains.
  • A cost-effective model tailored for entrepreneurs, investors, and students & researchers at universities.
  • Request customizations, suggest new reports, and avail analyst support as per your requirements.
  • Get an access to the library of reports at any time from any device and anywhere.

 
 

Why Allied Market Research?

Infallible Methodology

To ensure high-level data integrity, accurate analysis, and impeccable forecasts

Analyst Support

For complete satisfaction

Customization

On-demand customization of scope of the report to exactly meet your needs

Targeted Market View

Targeted market view to provide pertinent information and save time of readers

 

Featured Readings

 
rep-img

Published Date Jan 2021

Surgical Equipment Market

Download Sample
rep-img

Published Date Nov 2020

Medical Implant Market

Download Sample
 

Get Fresh content delivered

Get insights on topics that matter to your business. Stay updated on the area that interests you.

 
Get Industry Data Alerts
 

Buy Full Version
"Microfinance Market"
Purchase Enquiry