There are still many challenges relating to microfinance one being transparency: What local actors are the MFI working with? What activities are being done by the MFI? What is it offering entrepreneurs in terms of services and cost of capital? How are the services delivered? What are the social performance of the loans and its results?

I find business models using microfinance infrastructure really interesting. Microfinance organizations that have established brands and high quality relationships with local entrepreneurs in remote markets have an interesting possibility to leverage these relationships as a platform for developing and distributing various products and services. One example is Grameen Shakti in Bangladesh, that leverages the brand and infrastructure of Grameen Bank's nationwide microfinance program. It was created in 1996 to reach rural people with clean and affordable energy in a country where 80% of the people still do not have access to electricity. The revenue model is often based on several shopkeepers sharing one system, with the electricity enabling new business opportunities. By 2002 Grameen Shakti reached break-even and by 2008 it had installed more than 180000 solar home systems, installing more than 8000 new ones each month.

Anders, The Business Model Database

There are still many challenges relating to microfinance one being transparency: What local actors are the MFI working with? What activities are being done by the MFI? What is it offering entrepreneurs in terms of services and cost of capital? How are the services delivered? What are the social performance of the loans and its results?

I find business models using microfinance infrastructure really interesting. Microfinance organizations that have established brands and high quality relationships with local entrepreneurs in remote markets have an interesting possibility to leverage these relationships as a platform for developing and distributing various products and services. One example is Grameen Shakti in Bangladesh, that leverages the brand and infrastructure of Grameen Bank's nationwide microfinance program. It was created in 1996 to reach rural people with clean and affordable energy in a country where 80% of the people still do not have access to electricity. The revenue model is often based on several shopkeepers sharing one system, with the electricity enabling new business opportunities. By 2002 Grameen Shakti reached break-even and by 2008 it had installed more than 180000 solar home systems, installing more than 8000 new ones each month.

Anders, The Business Model Database

Here's a great microfinance documentary, in case you'd like to add it to your mind map:
http://www.kbyutv.org/smallfortunes/

I have a copy if you'dlike to borrow it.

There's actually quite a deal of additional info on that site as well.

Anyway, thanks for putting such a great resource together. I hope to use it (and contribute) more fully someday.

Usually microfinance has the connotation of being used for helping others alleviate themselves out of poverty, so not sure I would consider Prosper and Zopa to fall into this realm as the financings can be used for anything, not necessarily to address a social ill. However, they definitely COULD be used in this sense. So perhaps not a direct microfinance player, but definitely an outlying competitor?

I had yet to run across these two companies and greatly appreciate you bringing them to my attention!

Thanks.
Rachel

Thanks for commenting.
Rachel