microfinance firms are found in remote areas
Microfinance refers to organizations that provide financial services to a targeted group of people and organizations in society. In essence, they provide individuals and small businesses that lack access to mainstream banking services with an opportunity to access them easily. In most cases, microfinance firms are found in remote areas where they can be readily accessed by their target market.
Having been in the microfinance industry for a while, I have had the opportunity to have an in-depth look at the impact it can have on society. One of the most vivid memories I have dates back to 2017 when the microfinance I worked for set out to establish itself in South America. Upon hearing about us, a group of farmers from the region approached us and discussed the viability of giving them credit to expand their business. They were quite candid about the difficulties they had experienced trying to get the loan from local banks. After a few meetings with the in-house team, a loan was offered. In 2019, the firm reported that the farmers had managed to repay their loan in full and their farming business had grown exponentially. Their monthly revenue averaged at around $450,000 which was a significant increase given that before the loan, they were making about $15,000. The success of the farming organization opened my eyes to how much microfinancing can make a difference in people’s lives.