Microfinance

Microfinance is the provision of financial services to low-income people and a key pillar of improving financial inclusion globally. By providing access to financial services, microfinance helps low-income households generate income, build assets, manage consumption and manage risks.

The World Bank estimates that approximately 1.4 billion adults, or approximately 25 per cent of the world adult population, do not have an account at a formal financial institution and are therefore financially excluded.

Addressable market for ASA International

c. 344 million

Prospects in existing countries

Using the World Bank’s data, there are estimated to be 344 million potential adult women clients made up of the low-income adult female population in ASA International’s existing thirteen operating countries. The Group views women earning broadly around U.S.$3.20 a day (which is the international poverty line for lower-middle income economies, as defined by the World Bank, and based on 2011 international prices) as potential clients.

ASA International is well-placed to capture this significant breadth of opportunity by continuing to increase its market penetration.

Large addressable market

Total
 
343.6m
Asia
Financial institutions 20.0m
  Informal sources 87.9m
  Non-borrowers 147.1m
  Total 254.9m
Africa
Financial institutions 7.7m
  Informal sources 34.4m
  Non-borrowers 46.6m
  Total 88.7m

Financial institutions

Financial institutions in the table refer to those served by organisations that process monetary transactions such as loans, deposits and investments. Examples include banks and credit unions.

Informal sources

Informal sources in the table refer to those served by sources of informal credit that do not fall in the traditional banking sector and are not a registered institution. Examples include relatives, friends or local lenders (e.g. payday lenders and pawn shops).

Non-borrowers

Non-borrowers refer to those who have not previously borrowed from any source.

The table below presents further detail on the borrowing habits of women in the Group’s 13 countries of operation.

Women age 15+ with earnings < US$3.20, borrowing from:
  (in m) Working age pop. (15+)  Financial institution  Informal sources  Non-borrowers  Total  Existing clients*
ASIa
India 1034.2 17.8 74.8 125.8 218.4 0.7
Pakistan 147.2 0.7 8.9 16.0 25.6 0.4
Philippines 78.3 0.7 3.2 2.8 6.7 0.3
Myanmar 41.0 0.6 0.8 1.8 3.2 0.1
Sri Lanka 16.9 0.2 0.2 0.6 1.0 0.1
Total
1317.6
20.0
87.9
147.1
254.9
1.6
               
AFRICA
Nigeria 119.8 2.2 14.5 25.5 42.2 0.3
Tanzania 34.9 0.7 4.9 7.9 13.5 0.1
Kenya 34.1 2.2 5.2 4.1 11.5 0.1
Uganda 25.7 1.4 4.7 3.1 9.2 0.1
Ghana 20.0 0.3 0.8 1.7 2.9 0.2
Rwanda 8.1 0.3 1.9 1.1 3.3 0.0
Sierra Leone 4.9 0.1 0.8 0.9 1.9 0.0
Zambia 10.7 0.4 1.6 2.1 4.1 0.0
Total 258.1 7.7 34.4 46.6 88.7 0.8
TOTAL
 
1575.7
27.6
122.3
193.7
343.6
2.4

* ASA International clients as at 30 June 2021 (H1 2020 unaudited).

Notes:

(1) All statistics are taken from https://www.worldbank.org/, accessed March 2021.
(2) Specifically, population statistics, low income percentages, and borrowing structure are taken from Population Estimates and Projections database, Poverty and Equity Brief, and Global Financial Inclusion database respectively