This enabling policy and regulatory environment has allowed microfinance to flourish within the banking sector. Today, banks are considered one of the main players in the country’s microfinance industry. This commercialization is a reflection of global trends. Today, global financial giants are setting up dedicated offices for microfinance. We also know of some microfinance institutions that are publicly listed.
And loan portfolios are being securitized. The range of players involved in the industry is also becoming more diverse. Private equity firms, commercial banks, and even cement and real estate companies are investing in microfinance institutions around the world. Even mobile phone manufacturers are looking at microfinance as a means to increase mobile phone penetration in several countries .