Microfinance is an arrangement to credit the small loan amount to people having little or no income so that they can create their own livelihood. Microfinance industries also include other services such as savings accounts, training, health services, and networking. The microfinance industry mostly works in developing and emerging countries such as Bangladesh, India, Brazil, and Colombia. Generally, repayment rates in the microfinance industry are higher as compared to conventional buyers. It is due to a system of peer support that is used in many microcredit models and borrowers are responsible for each other. Before the pandemic, government initiatives, increasing foreign investment in the emerging economies, growth in small and medium enterprises are some of the major drivers for the microfinance industry. Moreover, rising potential toward household living and maintaining social living in rural areas is also augmenting the market.
The COVID-19 pandemic has created a temporary as well as long time impact on the microfinance industry. In many emerging economies, lockdown for weeks has been announced by the government to prevent the spread of the COVID-19. Countries such as India, Bangladesh, Colombia, and others are under lockdown for weeks due to which regular operation related to microfinance is halted. Moreover, global investors have withdrawn huge investments from emerging economies due to the downfall in the stock market, which is creating credit and liquidity problems in those economies. Moreover, due to coronavirus, a downfall in global GDP in 2020 is projected, which is also going to affect the microfinance industry in a negative way.
The global microfinance industry report is segmented based into group and individual micro-credit, insurance, leasing, micro-investment funds, savings and checking accounts, and other verticals. Group and Individual Micro Credit and leasing are expected to be affected significantly all across the globe. The effect of COVID-19 on the microfinance industry can be observed in all the regions including North America, Europe, Asia-Pacific, and the Rest of the World. Europe and North America are the most affected regions due to the COVID-19 pandemic. More than 650,000 confirmed cases in North America and more than 950,000 cases in Europe have been registered by the mid of April 2020. As the countries in the region are developed economies, compensation is expected to be provided by the government. However, in emerging economies such as India, Brazil, Bangladesh, and ASEAN countries; the government will not be able to incur most of the loss due to the COIVD-19 pandemic.
Key companies/institutions of the microfinance industry that are getting affected globally include Adie, Bandhan Bank Ltd., Bangladesh Rural Advancement Committee (BRAC), Bank Rakyat Indonesia Tbk, Grameen Bank, National Bank for Agriculture and Rural Development (NABARD) and so on. Due to the COVID-19 pandemic, the organizations are suspending the loans of the people for a temporary period. For instance, Adie announced that the installments of April, May, and June can be suspended. Moreover, it also launched an emergency loan with a grace period of three months.
Research Methodology
OMR global recently published a report addressing the impact of COVID-19 on the global microfinance industry. The study is incorporated by extensive primary and secondary research conducted by the research team. Different approaches have been worked on to derive the market value and market growth rate. In the report, the analysis of the country is provided by analyzing various regional players, laws and policies, consumer behavior, and macro-economic factors. The report includes analysis of different regions and countries and the effect of COVID-19 on the microfinance industry of each respective region. Besides, an expected recovery timeline of the industry will also be included with the best- and worst-case scenario which will aid clients to take their future steps in the decision-making process.
Sources Include
- Financial reports of companies involved in the market
- Whitepapers, research-papers, and news blogs
- Company websites and their product catalog
- Government Organizations Reports
The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.
The Report Covers
- Comprehensive research methodology of the global microfinance industry.
- A detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the global microfinance industry.
- Insights about market determinants which are stimulating the global microfinance industry.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
1.Report Summary
1.1.Research Methods and Tools
2.Market Overview and Insights
2.1.Scope of the Report
2.2.Analyst Insight & Current Market Trends
2.2.1.Key Findings
2.2.2.Recommendations
2.2.3.Conclusion
2.3.Government Support/Bailout Packages for the Microfinance industry
2.4.Supply & Demand Analysis
3.Industry Overview
3.1.Historical market growth estimation in the microfinance industry pre-COVID-19 pandemic effect
3.2.Deviations in the microfinance industry growth rate due to COVID-19 pandemic
4.Verticals Affected Most
4.1.Group and Individual Micro Credit
4.2.Insurance
4.3.Leasing
4.4.Micro investment Funds
4.5.Savings and Checking Accounts
4.6.Others
5.Regional Analysis
5.1.North America
5.1.1.United States
5.1.2.Canada
5.2.Europe
5.2.1.UK
5.2.2.Germany
5.2.3.France
5.2.4.Rest of Europe
5.3.Asia-Pacific
5.3.1.China
5.3.2.Japan
5.3.3.India
5.3.4.Rest of Asia-Pacific
5.4.Rest of the World
5.4.1.Latin America
5.4.2.Middle East Africa
6.Company Profiles
6.1.Adie
6.2.Bancamía S.A.
6.3.Banco do Nordeste do Brasil SA
6.4.Bandhan Bank Ltd.
6.5.Bangladesh Rural Advancement Committee (BRAC)
6.6.PT Bank Rakyat Indonesia Tbk
6.7.CreditAccess Grameen Ltd.
6.8.Grameen Bank
6.9.Kiva Microfunds
6.10.Qredits Microfinanciering Nederland
6.11.microStart SCRL
6.12.National Bank for Agriculture and Rural Development (NABARD)
1.GLOBAL MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY VERTICALS 2018-2025 ($ MILLION)
2.GLOBAL GROUP AND INDIVIDUAL MICRO CREDIT RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
3.GLOBAL INSURANCE MICROFINANCE RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
4.GLOBAL LEASING MICROFINANCE RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
5.GLOBAL MICRO INVESTMENT FUNDS RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
6.GLOBAL SAVINGS AND CHECKING ACCOUNTS MICROFINANCE RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
7.GLOBAL OTHER MICROFINANCE RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
8.NORTH AMERICA MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY COUNTRY 2018-2025 ($ MILLION)
9.NORTH AMERICA MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY VERTICAL 2018-2025 ($ MILLION)
10.EUROPE MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY COUNTRY 2018-2025 ($ MILLION)
11.EUROPE MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY VERTICAL 2018-2025 ($ MILLION)
12.ASIA PACIFIC MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY COUNTRY 2018-2025 ($ MILLION)
13.ASIA PACIFIC MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY VERTICAL 2018-2025 ($ MILLION)
14.REST OF WORLD MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS BY VERTICAL 2018-2025 ($ MILLION)
1.GLOBAL MICROFINANCE INDUSTRY TREND PRE AND POST COVID-19, 2018-2025 (%)
2.NORTH AMERICA MICROFINANCE INDUSTRY TREND PRE AND POST COVID-19, 2018-2025 (%)
3.EUROPE MICROFINANCE INDUSTRY TREND PRE AND POST COVID-19, 2018-2025 (%)
4.ASIA PACIFIC MICROFINANCE INDUSTRY TREND PRE AND POST COVID-19, 2018-2025 (%)
5.REST OF WORLD MICROFINANCE INDUSTRY TREND PRE AND POST COVID-19, 2018-2025 (%)
6.US MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
7.CANADA MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
8.UK MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
9.GERMANY MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
10.FRANCE MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
11.REST OF EUROPE MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
12.CHINA MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
13.JAPAN MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
14.INDIA MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
15.REST OF ASIA PACIFIC MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
16.LATIN AMERICA MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
17.MIDDLE EAST AFRICA MICROFINANCE INDUSTRY RESEARCH AND ANALYSIS 2018-2025 ($ MILLION)
