The power of finance to transform the lives of the poor is not well understood. Despite recent articles that raise concerns about microfinance, the evidence at large shows that successful microfinance institutions (and their list is growing) have managed to implement service delivery mechanisms that meet the needs of the poor, at a lower cost than most accessible alternatives. The work of these institutions, and a number of well-researched reports, shed light on the economic lives of the poor and the way the poor manage their finances.* These reports use detailed surveys, interviews and robust analytical techniques to improve our understanding of the impact of financial services on poverty.
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