MIX Market has released a report highlighting 2004 benchmarks on the performance of retail microfinance providers. The study evaluates over 300 institutions from around the world. Some key highlights from this robust data set include:
- MFI growth is significant: Globally, growth in borrowers increased by 30% in 2004. In South Asia and the Middle East åö growth in borrowers was even stronger, topping off at 50%.
- Profitable institutions reach more people. Overall profitable MFIs add 25% more borrowers than their unprofitable counterparts. Profitable MFIs cover much more ground åö “the 70% of MFIs earning 2004 profits reach well over 90% of total borrowers.”
- Scale and employee productivity help MFIs cut transaction costs and increase profitability. For example, as MFIs grow from 10,000 to 30,000 clients, cost per borrower plummets from 130 to 65 USD per borrower.