This was contrary to the trend observed in 2015 and 2016, where total assets grew by five per cent and 22 per cent respectively. Microfinance institutions need to redefine how, who they lend to,” he said. As at December 2017, there were 13 licensed microfinance banks, of which 11 had nationwide microfinance bank licences while two had community microfinance bank licences. Net advances accounted for 63 per cent of the microfinance banks’ total assets while net fixed assets accounted for 10 per cent of the total assets base. Cracknell said microfinance institutions can still grow since they offer bigger loans than mobile platforms, have value chain financing, daily savings for traders, cash advances for school fees and daily microloans.

Source: Standard Digital April 26, 2019 05:48 UTC