Reassessing Microfinance as a Development Tool
For over three decades since the 1980s, microfinance was hailed as a key development tool to reduce poverty, encourage entrepreneurship and empower women. However, a decade of serious criticism, fueled by several randomized control trial (RCT) studies showing mixed results on the impact of microcredit, along with negative press, led to waning enthusiasm for microfinance in recent years.
Despite these developments, microfinance is far from obsolete. Recent work by the Bill & Melinda Gates Foundation (Women and Equitable Growth in a Resource-Constrained World) and the Financial Access Initiative at NYU (Lessons for Global Microfinance from… the United States? & What Win-Win Lost: Rethinking Microfinance Subsidy in the Past and Designing for the Future) highlights the sector's continued relevance as an important tool in development, while arguing for key shifts in how we view the role of credit, subsidies and the drive for profitability as the sector commercialized.
With these evolving perspectives, is it time to rethink our approach to microfinance? In this webinar, our panelists explored this critical question and discussed what needs to change for microfinance to be effectively leveraged as a development tool.
About this Webinar
Recorded
Webinar Resources
Speaker Bios
Greta Bull
Greta Bull is the Director of Women’s Economic Empowerment at Bill & Melinda Gates Foundation. She leads the Foundation’s work on Women’s Economic Empowerment, where she oversees a portfolio of investments covering gender data and evidence, women’s economic collectives (WECs) and livelihoods development for poor women. Prior to joining the foundation, Greta worked for 15 years at the World Bank Group, where she served for six years as the CEO of CGAP.
Tim Ogden
Tim Ogden is Managing Director of the Financial Access Initiative, a research center exploring how financial services can better meet the needs and improve the lives of poor households. He also serves as the managing director of the Small Firm Diaries project, and was the managing director of the US Financial Diaries project. He is a co-founder of Sona Partners, a thought leadership communications firm. He is the author of Experimental Conversations, a collection of interviews with leading development economists, and co-author of Toyota Under Fire.
Andrée Simon
Andrée Simon is the President and Global CEO of FINCA International. From 2016 to 2023, Andrée served as President and CEO of FINCA’s global network of community-based microfinance banks and institutions known as FINCA Impact Finance (FIF). Most recently, Andrée led the transformation of FIF’s business model during the global pandemic toward digitization and optimization, creating better value for customers and resilience for the network.
Bridget Dougherty
Bridget Dougherty is the Managing Director of BRAC International Holdings B.V. Bridget is responsible for strengthening and supporting the maturing of their Financial Institutions in line with their Growth for Impact strategy, including digital transformation and impact measurement. Dougherty has 17 years of experience in consulting, project management, process improvement, and systems implementation, working the last 13 years in private sector development and financial inclusion.
Alexander Sotiriou
Alexander Sotiriou Senior Financial Sector Specialist. He works across a range of issues at CGAP, including micro and small enterprise (MSE) finance and the linkages between financial services, improved livelihoods and access to basic services. He joined CGAP from MicroVest, where he was the investment manager for Latin America. Earlier, Alexander was an associate in Citi’s Johannesburg and Mexico City offices, and an analyst for a private equity fund in Mexico.
Valdete Berisha
Valdete Berisha is Senior External Affairs Officer at CGAP. She leads FinDev Gateway, a CGAP platform promoting dialogue on financial inclusion's role in development. She also serves as a communications advisor for CGAP’s Financial Inclusion 2.0 initiative, providing strategic advice on external relations, influence strategy, and editorial excellence. Valdete's international development research and communications experience spans financial inclusion, microfinance, global trade, and agriculture policy.
After 40 years, Fin Dev, BRAC, CGAP, FINCA and their funders such as Gates Foundation etc still mix microfinance and microcredit. May I assume that is because in fact it is limited to socio-political philanthropic money for NGOs lending to specifically targeted people with absolute poverty challenges? Microfinance has so much potential to help build inclusive financial sectors that are effectively supervised by national authorities; central banks and finance ministries .... as in wealthy nations. I quote what Prof. Muhammad Yunus, founder of Grameenbank explained to me in 1998: we were nearly bankrupt. First thing we do is to stop funding from foreign charities. Then make our borrowers members and transit to deposit-led funding and make lending activities profitable, under a banking license
Great initiative
Good meeting
may I get recorded copy of webnar audio?
The webinar recording is now available as a YouTube video at the top of this page.
Where shall we access the recording?
The webinar recording is now available as a YouTube video at the top of this page.
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