MFIs More Than Just a Bank?

MFIs need and want do more

In a recent survey by Microfinance Insights, a global publication on microfinance, more than 85% of MFIs and MFI investors believe that they should be looking wider social development outside of financial inclusion. In previous posts I have told you that microfinance is important for the people who have been excluded by conventional banks. But, as microfinance institutions are growing rapidly with their success in microcredit many of them are looking towards more ways they can help their clients in different social areas. Many of the surveyed MFIs are already working toward a wider view in social development. About 79% of the MFIs surveyed already offere products and solutions for their clients like community development, inclusion of minorities, and better employment and labor conditions. This drive for better social development programs may be stemming from the commercialization of the industry. As the commercialization proliferates people have started to believe that microfinance has drifted from its original goal of helping people out of poverty. Therefore, many of the microfinance institutions are looking to help communities to break some of these negative images of microfinance. I believe that microfinance institutions stand as a helping hand to struggling people in the countries that they operate in. I also believe that if a microfinance institution believes in what it is doing and is successful they should look for more ways of helping their clients in their fight with poverty. The Grameen Bank does this successfully by investing in hygenic products for their clients and educating their clients in better social behavior. Plus, as microfinance institutions help the community more people will grow to know the organization and it will most likely bring more clients. But what do you think?