n 2014, there were more than 4 thousand MFIs, in mid-2021 — 1,300. A large local campaigns in google ads number of organizations left the market or were unable to enter it due to stricter requirements for financial stability and the quality of services provided. Since 2019, the status quo has been established in terms of the share of large MFIs and all the others: the top 20 MFIs account for 53-56% of the market. This figure is quite stable. For comparison: in the banking sector, the top 5 banks account for 65% of the market. We do not see any significant reasons for the concentration in the microfinance market to increase sharply.
New players are also entering the market
Their owners do not think that this is some kind of easy business. In addition, during the pandemic, companies began to stand out that rely on technology. And in this sense, large companies that can spend money on developing online services and make good scoring are getting advantages. De facto, they are even becoming federal companies. Currently, 71% of microloan agreements are concluded via the Internet. This is a very high figure. I would not be surprised if over time it grows to 80 or even 90%.
— Is it really that good that more and more borrowers will be just a few clicks away from a microloan at 1% per day?
It’s more about the ease of communicating
information to a potential borrower, rather than the fact that it’s easier to get a microloan. You can quickly submit documents online, but the lender will still study them. And if he has frase an ai-powered platform that includes keyword doubts about your solvency, you won’t get a loan with a second click. You will either be required to provide additional information and ao lists documents, or you will be refused. The ease of technology does not always mean the ease of receiving funds.