2014 Banana Skins Report Reveals Overindebtedness as Biggest Concern in Microfinance Industry

> Posted by Center Staff

Today, the Centre for the Study of Financial Innovation (CSFI), Citi Foundation, and CFI released the latest Microfinance Banana Skins Report, Facing Reality. The first Microfinance Banana Skins was published in 2008, launching a regular series on risks facing the microfinance industry. This fifth iteration in the series reflects the growing complexity of microfinance as newer players such as technology companies, payment platforms, commercial banks, and others begin to serve those at the base of the pyramid. The new report outlines the risks and opportunities facing microfinance in a fast-changing environment.

Despite these challenges, the number one concern is still an old favorite: overindebtedness, which was also the number one concern in the previous report in 2012.

The report presents the risk perceptions of more than 300 practitioners and close industry observers from 70 countries, gathered through a survey. The report provides a commentary on each of the 19 risks that are identified in the survey and breaks down responses by type and region. It also includes a detailed analysis of the condition and prospects for microfinance by industry experts Sam Mendelson and Daniel Rozas.

Quotes from CFI staffers, including Elisabeth Rhyne, Isabelle Barrès, Deborah Drake, Sergio Guzmán, and Danielle Piskadlo are featured in the report, providing industry perceptions and insights on topics such as financial capability, appropriate product design, and mission drift.

What are the other top risks to the microfinance industry? How have the rankings changed since 2012’s report? You’ll have to read the full report to find out, available here.

Have you read?

Banana Skins 2012: Improving MFI Governance

Is Microfinance Losing Its Fairy Dust? ‘Banana Skins 2011′ Holds the Answers

2009 Microfinance Banana Skins Report