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 1.7 billion adults, or approximately 31 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. 365 million

Financially excluded adult women

Using the World Bank’s data, there are estimated to be 365 million potential adult women clients made up of the low-income adult female population in ASA International’s existing twelve 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).

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

Large addressable market

Total
  364.8mn
Asia
Financial Institutions 19.3mn
  Informal Sources 104.7mn
  Non-Borrowers 167.8mn
  Total 291.9mn
Africa
Financial Institutions 5.2mn
  Informal Sources 28.9mn
  Non-Borrowers 38.8mn
  Total 72.9mn

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 12 countries of operation.

Women Age 15+ with Earnings < US$3.20, borrowing from:
    Working Age Pop. (15+) Financial Instit. Informal Sources Non-Borrowers Total ASAI Existing Customers
Asia
India 887.9 16.5 103.1 138.8 258.5 0.5
  Pakistan 120.5 0.3 11.2 11.7 3.2 0.4
  Philippines 64.8 1.3 6.3 3.3 10.9 0.3
  Myanmar 40.0 1.0 1.7 3.5 6.2 0.1
  Sri Lanka 15.3 0.2 0.1 0.9 1.3 0.1
  Total 1,128.5 19.4 122.5 158.2 300.1 1.3
               
Africa
Nigeria 96.6 2.0 14.6 20.4 37.0 0.2
  Tanzania 27.2 0.7 5.3 4.8 10.9 0.1
  Kenya 25.6 1.2 5.0 1.6 7.8 0.05
  Uganda 19.4 1.0 4.1 1.4 6.5 0.1
  Ghana 15.9 0.2 0.8 1.8 2.8 0.1
  Rwanda 6.7 0.2 1.2 1.4 2.8 0.01
  Sierra Leone 3.6 0.1 0.8 0.6 1.5 0.02
  Total 195.0 5.4 31.8 32.0 69.2 0.6
               
Total
  1,323.5 24.7 154.3 190.2 369.2 1.8