Developed countries are also gradually adopting the tools of microfinance within their own economies. For example, BNL (BNP PARIBAS's subsidiary in Italy) and PerMicro, Italy's leading microfinance institution, have recently partnered to address the Italian economy.BNP Paribas also supports micro-entrepreneurs and micro-startups through Créajeunes, a program developed by ADIE to encourage young people between 18 and 32 years old to start a business.

Finally, the expansion of microcredit to other financial products and services (like savings or insurance) tends to reinforce the viability and social vocation of microfinance services. The concept of inclusive finance refers to this new balance that is driving a virtuous economic cycle.

Inclusive finance also relies on new technologies to give the poorest populations access to financial services. In Kenya, money transfer by SMS has enabled nearly 200,000 households to escape extreme poverty. The digitalisation of financial services also represents a potential GDP boost of 3.7 trillion dollars for emerging countries by 2025.

From its origins in a village of Bangladesh, microfinance has already left its mark on the past 40 years of economic history. In 2014, according to the microfinance barometer, 1,045 microfinance institutions have served a combined total of 111.7 million customers. The number of borrowers tripled between 2013 and 2014. The total amount of microcredits issued worldwide climbed to $87.1 billion dollars, representing an increase of more than 12.6% over the previous year. This form of ethical and responsible finance, in the service of business, has already laid the groundwork for overcoming the immense challenges ahead: meeting the needs of 500 million people awaiting financing and fighting against the economic exclusion of 700 million people still living in extreme poverty. It's a tall order that starts with a small sum.

BNP Paribas SA published this content on 17 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 August 2017 14:01:01 UTC.

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