Five Ideas to Make Microlending More Effective

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Five Ideas to Make Microlending More Effective

By MetLife and WSJ Custom Studios

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From experts in the field, 5 keys to effective #microlending #FinancialInclusion @MetLife http://3bl.me/w66vbk
Wednesday, July 1, 2015 - 12:15pm

CAMPAIGN: Financial Inclusion

CONTENT: Article

Presented by MetLife Foundation in collaboration with WSJ. Custom Studios, Multipliers of Prosperity takes a look globally at the challenges we face in confronting the issues of financial inclusion. The program dives deep into what’s working, questions what isn’t and finds the possible fixes. Most importantly, the program chronicles the triumphs of people who have taken the steps toward financial stability and the providers who have helped them reach those goals. We explore how financial stability is created, the kind of finance models that have succeeded, and innovative new channels and technology that make for smart solutions. 

When microlending began in the 1970s, the idea was simple: To raise people out of poverty, microfinance institutions would provide small loans—from a few dollars to a few hundred dollars—to people who wanted to start businesses. Back then, borrowers and their businesses were treated the same—whether woman or man, weaver or farmer. Loan options were strikingly similar, with rigid terms and conditions, which limited the number of poor who could be reached. In many cases, these limits also stifled creativity and individualism in the development of financial services for the poor.

Lately, this one-size-fits-all approach is being reconsidered. To make microlending more effective, experts agree on five interconnected ideas and innovations: flexibility, holistic initiatives, technology, research and, finally, personalization.

From experts in the field, here are five ways to make microlending better.

To continue reading this article at Multipliers of Prosperity, click here. 

Contact

Nandika Madgavkar
+1 (212) 578-5707
Assistant Vice President, Corporate Responsibility for MetLife, Inc. - See more at: http://3blmedia.com/News/Dispatch-India-Small-Loans-Big-Impact#sthash.j1fcDeMg.dpuf
Keywords: Sustainable Finance & Socially Responsible Investment | Financial Inclusion | Innovation & Technology | MetLife | Social Impact & Volunteering | metlife foundation | microlending

CAMPAIGN: Financial Inclusion

CONTENT: Article

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