Microfinance and non-financial services: an impossible marriage
5 September 2017
Microfinance institutions (MFIs) can - in addition to their classic products - develop non-financial services: vocational training, technical assistance,
agricultural or health education. The comparative assessment of five Latin American MFIs (including FINCA Peru) shows that performance varies depending on how non-financial services are integrated into usual activities, but that this diversification is possible and even seems to make a great improvement to the quality of the portfolio. However, the choice of the integration model (“linked”, “parallel” or “unified”) and its implementation must be carefully tailored to the context.
Responsibility
External