Microfinance has become an alternative to conventional banking in addressing the banking needs of the poor, mostly traders, farmers, and artisans who typically are unable to meet the high banking criteria of the conventional banks. The literacy level in some communities further compounds this problem as the rural poor appear to characterise the conventional banks as lacking simplicity in account opening and operation, possessing difficult KYC hurdles, and having huge collateral requirements for loan customers. The situation has created opportunity for potential micro-finance bank owners given the statistics that only 25% of the bankable population across SSA are optimistically, accommodated by the conventional banks.

Further, the engendering regulatory framework especially with capital requirement makes the business case much simpler. In spite of the attractions, the sustainability of MFB (Micro Finance Banks) model is of concern to stakeholders because of high transaction costs, Risk allocation weakness, weak governance, Information constraints, and weak capacity. Research however indicates that asset quality and repayment culture appear sounder in MFB than in conventional banks given the right atmosphere. We have hands on, experienced practitioners that could provide guidance from establishment to successful operation of Microfinance banks