This document discusses the current environment of microfinance and emerging challenges. It notes that microfinance has benefited 135 million poor families globally but is now facing issues like mission drift, over-commercialization, over-indebtedness, and criticisms of unfair practices in some countries. The reasons for these problems include lack of client orientation, deviation from best practices, and overriding social mission for profits. The way forward suggested is for boards and investors to refocus on serving the poor through smaller targeted loans, financial literacy training, savings promotion, self-regulation, and ensuring CEOs and staff are committed to the social mission.