Microfinance sector may see consolidation post Covid-19, say experts

Microfinance industry will remain only for people who are following regulatory norms very seriously and have a roadmap ahead of them, says one expert

The microfinance industry, which serves the unbanked, is likely to head towards the path of consolidation post-Covid-19, feel industry experts.

Micro lenders will also move towards digitisation of all processes for serving their customers who are going to see a change in their transaction habits, they said.

A lot of people who are not here for the long-term or don't have a very long-term vision of being in this industry and serving these (MFI) customers, will most likely find their way out. I would think that it also opens up some kind of path to consolidation in the industry," Ujjivan Small Finance