La otra microfinanza

We understand the Other micro-finance, as the intentional induction of informal financial practices. In the microfinance model used in this case bancarization is proposed, but the modification of collective informal mechanisms to promote local self-help groups that raise funds from their members (either as savings or investment) and used to directly fund their own credit needs. This without the intervention of other than the group’s own capital.

Another micro-finance part from the traditional natural mechanisms used by low-income populations, but introduces them a methodology to enhance and add value to the financial services they provide. Therefore, with this expression we refer to the use of traditional informal practices, induced now by individuals or institutions seeking to improve them to provide their users greater confidence, security, opportunity, transparency and financial education.

For about 15 years operating with this criterion in communities, facilitating the process so that people can manage their own economic needs. If we review the informal practices developed as models induced by institutions or individuals, we will find a rich diversity which focuses on different aspects depending on the needs of each population: savings, credit, education or community aspects.