The Wall Street Journal’s Market Watch had an interesting article today by Elizabeth Rhyne. As the world slowly pulls out of the massive recession, banks must combat new hurdles. And as Rhyne puts it, that has “nothing to do with exotic financial engineering”.
Instead many banks and others in the financial sector are returning to the basics in microfinance: “relationship banking, strong underwriting, and transparent products”. Providing not just microcredit, but broader financial services to poor people worldwide could prove to be truly revolutionizing for the banking industry. Especially when the world’s poorest represent an estimated $5 trillion in purchasing power.
Read more commentary from Elizabeth Rhyne and learn about the next revolution HERE.
Elizabeth Rhyne is the Managing Director at the Center of Financial Inclusion of Accion International. Parts of the article were adapted from her forthcoming book, “Microfinance for Bankers and Investors: Understanding the Opportunity at the Bottom of the Pyramid.”