Microfinance is the provision of a broad range of financial services to poor and low-income people who do not have access to formal financial services such as:
- payment services
- money transfers
Microfinance services are provided by three types of sources:
Regulated financial institutions, such as banks, credit unions, consumer finance companies, postal savings banks and cooperatives
Nongovernmental organizations (NGOs)
Informal sources such as money lenders, shopkeepers, and “traditional” savings groups
Poverty and Microfinance “ Poor people borrow some of the time but save all of the time” Very Poor People who have few (if any) assets – very limited chances to earn money credit savings Entrepreneurial Poor Self Employed Poor Laboring Poor Very Poor The Poverty Pyramid Entrepreneurial Poor People who are slightly below the poverty line. Laboring Poor Farm laborers, domestics and unemployed workers Self-Employed Poor Poor people who are meeting their basic needs by running microbusinesses *Source: FINCA’s Poverty Pyramid insurance
Citigroup Microfinance Group –Expanding Access to Financial Services Credit Remittances Savings Insurance
The Citigroup Microfinance Group works with MFIs as clients and partners to expand access to financial services and products to the “unbanked” who are not currently reached by the formal financial sector.
The Citigroup Microfinance Group reports to the CEOs of Citigroup’s Global Consumer Group and its Corporate and Investment Bank
Multi-Product/Multi-business and geographic coverage .