The expansion of financial inclusion to improve the lives of the poor
As of August 2015, the Earth's population reached to 7.36+ billion people and growing. To save money and build credit, a person must have access affordable financial assistance like a bank account. Beginning in 2011, there were approximately 2.5 billion people worldwide who didn't meet the requirements to apply for an account. That's 2.5 billion people without the convenience and security of a personal, savings, or health insurance account.
As of 2014, the number of people without these basic financial services and programs had dropped to 2 billion adults. That's a 20% decrease, notable considering the world's population grows by around 70 million people each year. In only 3 years, the direct impact of microcredit provided 500 million people the opportunity to establish a credit and/or savings account, learn the value of saving, and receive access to valuable entrepreneurial skills.
For the remaining 2 billion people who live on under $2 a day and can't afford putting some money aside to build a 'rainy day' fund or to invest in their education, the fight to end poverty and financial exclusion continues.
The future of microfinancing
Currently, microfinancing's success rests on MFI's efforts of offering low cost assistance and supporting their customers financial needs. The future relies on innovative ideas based on improving the existing customer's financial responsibilities and supplying the billions leftover with a bank account.
One direction the industry explores is offering their credit services in combination with newly developed educational projects on business management and skills. For example, an individual, who lacks life and career skills, can receive training, apply for a microloan, and cash in the loan to advance their new career - all in one place.
As well as improving the service's quality, MFI's are looking to maximize the effectiveness of their employees. They are implementing advanced tools to train employees to boost results and offer exceptional services. The more satisfied the customer, the more likely they will return. Using resources that could provide the poor with even more income-generated activities is always welcomed.