The story of microfinance companies

Microfinance companies are financial institutions that provide banking services to low-income groups or individuals. The concept was first developed by Bangladeshi economist Professor Muhammad Yunus. Microfinance companies can be widely found in developing countries as many regions of these countries lack access to mainstream banking services. It has witnessed widespread success in developing countries and won praises from many. But there exists ethical issues with microfinance companies. Though they provide the poor with funds to escape poverty, it burdens the vulnerable section with debt. Profiteering in the sector has also been reported. Thus there is a need for increased regulations to ensure transparency in the operation of microfinance companies. Read more at: https://channels.theinnovationenterprise.com/articles/the-growth-of-microfinance-companies