Are all MFIs non-profit?

Many MFIs began as a non-profits, however, a for-profit sector has developed more recently. For-profit MFIs have drawn on large investments which allow them to distribute more funds by (at times) more efficient means. The challenge for many for-profit MFIs is achieving a balance between financial sustainability and the poverty-alleviation mission of the microfinance sector. At OneSeed, all of our partners have been carefully selected because they meet our criteria and they all also happen to be non-profit MFIs.

Here are some of the most prominent global MFIs and organizations furthering the mission of microfinance:

• Grameen Foundation was an expansion of the Grameen Bank, which began in 1976 in Bangladesh. The foundation remains non-profit but the bank has converted to for-profit.

• BRAC is the largest MFI in the world aiding 126 million people with its non-profit services.

• Compartamos Banco is based in Mexico and is most known for is success after converting from a non-profit to a for profit. Its share price increased 22% in the first day of trading. However, the bank has received criticism surrounding the extreme profitability of the company and its interest rates of up to 90%.

• Truelift is designed to rate how well an MFI serves those living in poverty. They give their ‘Pro-Poor Seal of Excellence’ to MFIs who meet their standards.

• Cerise is a network for MFIs to share and learn from one another.