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Poverty scoring and financial inclusion of the poor
Author(s) -
Bumacov Vitalie,
Ashta Arvind,
Singh Pritam
Publication year - 2017
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.2166
Subject(s) - microfinance , outreach , poverty , financial inclusion , business , non profit , financial system , finance , economics , economic growth , financial services , business administration
The use of poverty scoring is associated with increased outreach towards poor borrowers only in nonprofit microfinance institutions while, in for‐profit microfinance institutions, poverty scoring is associated with increased availability of financing. Poverty scoring allows for‐profit microfinance institutions to borrow funds from social investors in addition to funds borrowed from the market. As long as these social funds do not substitute market funds used in financing poor microborrowers, the share of poor clients served increases, so does financial inclusion of the poor.