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Over the past centuries practical visionaries from the [[Franciscan]] monks who founded the community-oriented [[pawnshops]] of the fifteenth century, to the founders of the European [[credit union]] movement in the nineteenth century (such as [[Friedrich Wilhelm Raiffeisen]]) and the founders of the [[microcredit]] movement in the 1970s (such as [[Muhammad Yunus]]) have tested practices and built institutions designed to bring the kinds of livelihood opportunities and risk management tools that financial services provide to the doorsteps of poor people. While the success of [[Grameen Bank]] (which now serves over seven million poor Bangladeshi women) has inspired the world, it has proved difficult to replicate this success in practice. In nations with lower population densities, meeting the operating costs of a retail branch by serving nearby customers has proven considerably more challenging.

Over the past centuries practical visionaries from the [[Franciscan]] monks who founded the community-oriented [[pawnshops]] of the fifteenth century, to the founders of the European [[credit union]] movement in the nineteenth century (such as [[Friedrich Wilhelm Raiffeisen]]) and the founders of the [[microcredit]] movement in the 1970s (such as [[Muhammad Yunus]]) have tested practices and built institutions designed to bring the kinds of livelihood opportunities and risk management tools that financial services provide to the doorsteps of poor people. While the success of [[Grameen Bank]] (which now serves over seven million poor Bangladeshi women) has inspired the world, it has proved difficult to replicate this success in practice. In nations with lower population densities, meeting the operating costs of a retail branch by serving nearby customers has proven considerably more challenging.

Although much progress has been made, the problem has not been solved yet, and the overwhelming majority of people who earn less than $1 a day, especially in the rural areas, continue to have no practical access to [[formal]] sector finance. Microfinance has been growing rapidly with $25B currently at work in microfinance loans.  It is estimated that the industry needs $250 billion to get capital to all the poor people who need it.  The industry has been growing rapidly and there have been concerns that the rate of capital flowing into microfinance is a potential risk unless managed well.[http://www.citigroup.com/citigroup/microfinance/data/news080303b.pdf][http://en.wikipedia.org/wiki/Microfinance]

Although much progress has been made, the problem has not been solved yet, and the overwhelming majority of people who earn less than $1 a day, especially in the rural areas, continue to have no practical access to [[formal]] sector finance. Microfinance has been growing rapidly with $25B currently at work in microfinance loans.  It is estimated that the industry needs $250 billion to get capital to all the poor people who need it.  The industry has been growing rapidly and there have been concerns that the rate of capital flowing into microfinance is a potential risk unless managed well.[https://www.citigroup.com/citigroup/microfinance/data/news080303b.pdf][https://en.wikipedia.org/wiki/Microfinance]

== Bibliography ==

== Bibliography ==

# Helms, Brigit (2006). Access for All: Building Inclusive Financial Systems. Washington, D.C.: The World Bank. ISBN 0821363603.  

# Helms, Brigit (2006). Access for All: Building Inclusive Financial Systems. Washington, D.C.: The World Bank. ISBN 0821363603.  

# Microfinance: An emerging investment opportunity. Deutsche Bank Dec 2007

# Microfinance: An emerging investment opportunity. Deutsche Bank Dec 2007

# http://www.citigroup.com/citigroup/microfinance/data/news080303b.pdf

# https://www.citigroup.com/citigroup/microfinance/data/news080303b.pdf

# Helms (2006), p. xi

# Helms (2006), p. xi

# Helms (2006), p. xii

# Helms (2006), p. xii

# See for example Adrian Gonzalez & Richard Rosenberg. The state of microfinance: outreach, profitability and poverty, Consultative Group to Assist the Poor, 2006.

# See for example Adrian Gonzalez & Richard Rosenberg. The state of microfinance: outreach, profitability and poverty, Consultative Group to Assist the Poor, 2006.

# The Microfinance Information Exchange. MicroBanking Bulletin Issue #15, Autumn, 2007, pp. 46,49

# The Microfinance Information Exchange. MicroBanking Bulletin Issue #15, Autumn, 2007, pp. 46,49

# McKenzie, David (2008-10-17). "Comments Made at IPA/FAI Microfinance Conference Oct. 17 2008". Philanthropy Action. http://www.philanthropyaction.com/nc/what_is_it_about_women/. Retrieved on 2008-10-17.  

# McKenzie, David (2008-10-17). "Comments Made at IPA/FAI Microfinance Conference Oct. 17 2008". Philanthropy Action. https://www.philanthropyaction.com/nc/what_is_it_about_women/. Retrieved on 2008-10-17.  

# See for example Cheryl Frankiewicz Calmeadow Metrofund: a Canadian experiment in sustainable microfinance, Calmeadow Foundation, 2001.

# See for example Cheryl Frankiewicz Calmeadow Metrofund: a Canadian experiment in sustainable microfinance, Calmeadow Foundation, 2001.

# Stuart Rutherford. The Poor and Their Money. Oxford University Press, New Delhi, 2000, p. 4. isbn =019565790X

# Stuart Rutherford. The Poor and Their Money. Oxford University Press, New Delhi, 2000, p. 4. isbn =019565790X

== External links ==

== External links ==

* [http://www.cgap.org/ CGAP], Consultative Group to Assist the Poor

* [https://www.cgap.org/ CGAP], Consultative Group to Assist the Poor

* [http://www.fdc.org.au The Foundation for Development Cooperation] - Asia-Pacific Microfinance Specialist NGO

* [https://www.fdc.org.au The Foundation for Development Cooperation] - Asia-Pacific Microfinance Specialist NGO

* [http://www.mra.gov.bd/ MRA], The central body to monitor and supervise microfinance operation of Non-government organizations of Bangladesh

* [https://www.mra.gov.bd/ MRA], The central body to monitor and supervise microfinance operation of Non-government organizations of Bangladesh

* [http://www.financialaccess.org/ Financial Access Initiative], a joint program of Harvard, Yale, New York University and Innovations for Poverty Action

* [https://www.financialaccess.org/ Financial Access Initiative], a joint program of Harvard, Yale, New York University and Innovations for Poverty Action

* [http://aede.osu.edu/programs/RuralFinance/ Rural Finance Program] at [[The Ohio State University]]

* [https://aede.osu.edu/programs/RuralFinance/ Rural Finance Program] at [[The Ohio State University]]

* [http://www.uncdf.org/mfdl/index.php?_mode=students.home UNCDF Microfinance Distance Learning Program]

* [https://www.uncdf.org/mfdl/index.php?_mode=students.home UNCDF Microfinance Distance Learning Program]

* [http://www.onehen.org/ Teaching microfinance to kids - OneHen.org]

* [https://www.onehen.org/ Teaching microfinance to kids - OneHen.org]

* [http://blackandwhiteprogram.com/report/what-microfinance-means-for-china%e2%80%99s-growth Microfinance in China]

* [https://blackandwhiteprogram.com/report/what-microfinance-means-for-china%e2%80%99s-growth Microfinance in China]

* [http://www.indiamicrofinance.com/2008/12/microfinance-india-state-of-sector_12.html Microfinance India - State of the sector report 2006, 2007, 2008]

* [https://www.indiamicrofinance.com/2008/12/microfinance-india-state-of-sector_12.html Microfinance India - State of the sector report 2006, 2007, 2008]

* [http://www.luxflag.org/ Luxembourg Fund Labelling Agency for Microfinance Investment Vehicles]

* [https://www.luxflag.org/ Luxembourg Fund Labelling Agency for Microfinance Investment Vehicles]

* [http://www.mykro.org/ myKRO.org - Exploring the World of Microfinance]

* [https://www.mykro.org/ myKRO.org - Exploring the World of Microfinance]

* [http://www.bwtp.org/ The Banking with the Poor Network]

* [https://www.bwtp.org/ The Banking with the Poor Network]

[[Category: Economics]]

[[Category: Economics]]