More interesting news from the Financial Times (via WBCSD) about the win-win payoff being enjoyed in the microfinance sector. According to the article, what was once considered a low-scale “good dead” is now becoming a hot investment opportunity. The rise of firms like prosper.com comes to mind, as well as the sizable microfinance programs that major lenders like Citibank are now involved with. Interestingly, though returns maybe somewhat lower than other forms of lending, risks are far lower than one might expect. From the article: “It turns out that poor rural women are better credit risks than many companies, meaning that default rates are low. Accion [A major microfinance find ]reports a historical repayment rate of 97 per cent. No Accion or Calvert investors have lost money to date.”
Nick Aster is a new media architect and the founder of TriplePundit.com
TriplePundit.com has grown to become one of the web's leading sources of news and ideas on how business can be used to make the world a better place.
Prior to TriplePundit Nick worked for Mother Jones magazine, successfully re-launching the magazine's online presence. He worked for TreeHugger.com, managing the technical side of the publication for 3 years and has also been an active consultant for individuals and companies entering the world of micro-publishing. He earned his stripes working for Gawker Media and Moreover Technologies in the early days of blogging.
Nick holds an MBA in sustainable management from the Presidio School of Management and graduated with a BA in History from Washington University in St. Louis.
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