The story of inclusive banking
Prof. Hans Dieter Seibel, Professor Emeritus, Cologne University
Once praised as a panacea to overcome poverty, microfinance has had to face harsh criticism because of painful failures and unfulfilled expectations. Many people, particularly in rural areas, still do not have any access to formal financial services, with many microfinance institutions either weak, or having exploited their clients driving them into over indebtedness. In this post, our guest author explores the evolution of inclusive savings and cooperatives banking from a historical, social science and economic point of view, looking at both past successes and failures.