MICROFINANCE

Microfinance, in itself, is not “the solution” to poverty alleviation, and never should have been held to this standard. Poverty is complex, and microfinance represents only one tool, albeit an important one, in a much larger toolbox of development solutions. While microfinance cannot lift billions out of poverty on its own, access to finance - and in particular, access to a broad suite of appropriately tailored financial products and services – does play an essential role in the sustainable growth of businesses of all sizes. It also can lead to other socio-economic benefits as well, such as increased income generation that allows families to invest further in healthcare, education, and nutrition, and protect against emergencies and unexpected events.

Treetops Capital believes that the three main tenets of “responsible microfinance” include: customer centricity and transparency, prudent growth, and good governance. Financial institutions that uphold these principles are best positioned to not only positively impact their clients’ welfare, but have stronger asset quality and financial sustainability over the long-run.