Providing financial services for actors who are excluded from the classic banking system
Microfinance aims to provide good quality financial services (credit, savings, insurance) for people on low incomes who are excluded from the commercial banking system. It is now recognised as a crucial development tool, particularly for reducing poverty and tackling inequalities.
However, there are still important financial needs that are not covered by either the banking system or microfinance institutions, especially in agriculture. Innovative financial tools that meet the needs of rural and agricultural actors with very low incomes are vital for local development, along with national policies to regulate financial practices and promote good governance of the many new systems emerging in the finance sector.