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The Implications of Increased Commercialization of the Microfinance Industry: What Can We Learn from the Discussions That Followed the Compartamos IPO?

MFI Solutions & La Colmena Milenaria

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Publication Date: Jul 2008
Published by: MFI Solutions & La Colmena Milenaria
Document Type: Other

How is commercialization affecting the microfinance industry?

The Compartamos IPO is one of the most significant events to happen in microfinance. It raises a number of very significant issues regarding the commercialization of microfinance and the appropriate balance between the dual goals of providing fairly priced financial services to the poor and seeking profitability for the owners of microfinance institutions. These issues motivated extensive and vibrant discussion within and beyond the microfinance industry. This paper seeks to pull together and distill the diverse arguments and positions that were articulated.

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