JyotiArora01

There have been a lot of reports about how the company can be rescued and helped get back on the right track when they were young in the industry. Comment below to see how the microfinance industry will strive to get back on track and keep shaping its tastes.

How is poverty striking faster than you can imagine?

Poverty is a massive industry. Even in an advanced country like the United States, which happens to be one of the world's wealthiest nations, the poverty market is worth around $33 billion a year. It includes payday loan centres, pawnshops, credit card companies and microfinance providers that produce revenue from the weaker sections of the population.

Millions of people continue to face extreme poverty between the so-called emerging and least developed countries. The first of 17 Sustainable Development Goals set by the United Nations is 'Ending poverty in all its forms everywhere.'

In concrete terms, there are actually between 1.2 and 1.5 billion people living in extreme poverty and 162 million children still suffering from chronic under-nutrition at the global level, a number that the UN finds 'unacceptable'.

How can microfinance rescue those in poverty?

Initially, most participants find that an MFI company effectively decreases poverty and raises the degree of unbanked financial inclusion. However, what I think the industry needs is precise and fast proof that shows the well it is doing.

Mixing the market and microfinance transparency, certain organisations have led the industry through data collection and made some measures to bring the data and microfinance effect into this poor existence. The motto of the top ten microfinance companies in India is precisely that.

Data is the new oil

Nonetheless, the organisations must concentrate on collecting data to provide more information about the services offered by MFIs, rather than on numbers such as the rating of the borrowers met. More focus on qualitative data to help MFIs develop their goods and how they communicate with their clients but also to make the world see the financial effect that microfinance can have.

They should also concentrate on having more geographically representative data, as a large amount of data in India and Asia has centred an enormous gap. Innovation is a critical field in the microfinance industry to pursue new orders to increase its effectiveness and potentially reduce its operational costs.

Mobile penetration is key to success in microfinance.

For instance, more MFIs would use the money for their mobile customers, which would mean customers would pay off their loans using their mobile phones and receive payments from their handsets as well. It will eliminate the need to fly or fill up other loan payment forms. It could improve productivity and reduce the cost of workers, the institutions of microfinance.

Several banks and financial institutions launched this initiative to make it easier for their customers to use mobile money payment applications. Fusion Microfinance is also one of those progressive organisations working closely to uplift the financial prowess of the rural and backward sections of Indian society.