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Interest: Strategy Sustainability Social impact Entrepreneurship
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Targeted to help people rise out of poverty, microfinance is not a silver bullet but a tool to be deployed wisely. Our research shows which kinds of loans have the greatest impact.
Many have predicted that mobile money and other fintech will replace traditional banks in impoverished countries. But our research showed that socially marginalized people need both.Â
Being part of the right community of insiders helps VCs get access to critical information and partnerships. The same holds true for founders.
In emerging economies, personal relationships can encourage microfinance borrowers to repay their loans, but can spur panic when crisis hits.