How did microfinance get started?
Roots to financial services for the poor can be traced throughout history. Money lenders and pawnbrokers in some form have likely existed from the beginning of money itself. Microfinance as we know it today began in the early 1970s. Early experimental programs such as the Grameen Bank started by Prof. Muhammad Yunus in Bangladesh developed techniques that have been refined and expanded over the years. An interesting book with this history is Banker to the Poor: Microlending and the Battle Against World Poverty by Muhammad Yunus (Public Affairs, 1999) The decades of experience in many regions and cultures has culminated in an industry that knows what works and what doesnt. Today the need is to reach and serve more people.
