Latest News- Microfinance Market: Small enterprises is expected to lead the End-user segment during 2025-2029

The Microfinance Market is being driven by Emergence of social media associated with growing digital connectivity

The Microfinance Market is expected to grow at a CAGR of 14.1% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 206.8 billion. Microfinance institutions, including Peer-to-Peer (P2P) lending platforms, crowdfunding, and invoice trading, are witnessing robust growth in the Asia Pacific (APAC) region due to the burgeoning number of Small and Medium Enterprises (SMEs). The APAC region hosts a substantial increase in the count of SMEs, which is fueling the demand for microfinancial services to foster business expansion. Key players in the P2P lending sector, such as LendingClub Corp., Prosper Funding LLC, PeerBerry, and AS Mintos Marketplace, are seizing this opportunity by extending their services in APAC. For instance, PeerBerry reported a 3% monthly increase in loan funding in June 2023. Microfinance solutions and service providers are instrumental in empowering SMEs by enhancing their access to credit and equity, thereby enabling them to invest in growth initiatives. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Small enterprises
  • Solo entrepreneurs
  • Micro enterprises
• Usage
  • Agriculture
  • Manufacturing/Production
  • Trade and services
  • Household
  • Others
• Type
  • Banks
  • Non-banks
• Service Type
  • Group and individual micro-credit
  • Insurance
  • Savings and checking accounts
  • Leasing
  • Micro-investment funds
• Geography
  • APAC
    • China
    • India
    • Vietnam
  • South America
    • Brazil
    • Argentina
    • Chile
    • Colombia
  • North America
    • US
  • Europe
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Emergence of social media associated with growing digital connectivity
• Quick and easy access to credit
• Increased focus on cost optimization and scaling computation

However, the market also witnesses some limitations, which are as follows:

• Inadequate risk management
• Lack of awareness of financial services
• Lack of technology awareness

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Market Scope in Microfinance Market Research Report

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Research Analysis Overview

Microfinance market offers loan facilities and financial services to the low-income segment and microenterprises sector through financial institutions, facilitating technology access and technological infrastructure for poverty reduction. Traditional lending practices are being replaced with peer-to-peer lending, mobile banking, and digital platforms to reduce operating costs. Financial inclusion is achieved through technological integration, providing financial aid, savings accounts, money transfers, leasing services, and financial return for the benefit of the economy's most financially vulnerable. Microcredit facilities are essential for economic empowerment, with financial technology and fintech companies playing a significant role in loan processing, credit scoring, and interest rate reduction. Traditional banking services are being transformed by technological adoption, offering financial health and financial return to the low-income segment and small businesses.

Market Research Overview

The microfinance market encompasses the revenue generated by financial institutions offering loan facilities and various financial services to micro and small enterprises and individuals. Technavio's market analysis includes revenue from microfinance credit providers, technology access, and the technological infrastructure that supports these institutions. This report excludes revenues from casino and gaming, hotel, resort, and cruise lines; leisure facilities; restaurants; and education services. The microfinance market size is determined by the income generated from specialized financial services catering to the unique needs of micro and small businesses and individuals.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/