MICROFINANCE: THE INNOVATIVE IDEA
By Dan Murray, CEO, Opportunity International Canada
According to the dictionary, to innovate is to make changes in something established, especially by introducing new methods, ideas, or products. It is further stated that innovation is crucial to the success of any organization.
Opportunity International was founded in 1971 and is celebrating its 50th anniversary this year. Canadians were deeply engaged in the work from the beginning, with Opportunity International Canada eventually formed in 1998 to deepen the engagement.
Innovation has been a defining characteristic of Opportunity International throughout its fifty years. In fact, it was borne out of innovation – the innovative idea that a small loan with training was a more effective – and more dignified – pathway out of poverty than a handout.
At Opportunity, innovation isn’t about change for the sake of change. The immense and diverse challenge of global poverty, spread over many countries, cultures, and demographics, demands the very best ideas to bring about real, measurable, and lasting change.
Innovation is demonstrated by the range of Opportunity programs that have already made an impact, including micro-loans, women’s trust groups, micro-savings, savings groups, and microinsurance, all in partnership and collaboration with local Partners.
Recent transformative initiatives are just as innovative, including Education Finance, Agriculture Finance, and Digital Financial Services, each impacting the fight against poverty.
Impact indeed! That seed of an idea fifty years ago has grown into a massive engine of poverty elimination. In 2020, almost 19.5 million clients in 30 countries were served, with $2.4 billion in new loans, 7.13 million active loan clients, 14.9 million clients with savings, and 7.3 million children getting an education.
And the journey of innovation continues, with emerging initiatives to unleash the power of financial inclusion in refugee camps, among displaced persons, training for unemployed youth, community health in rural areas, and to help clients and Partners build climate resiliency.
It is said the more things change, the more they stay the same. What hasn’t changed is that poverty is an attack on the dignity of those who are trapped by it. And what hasn’t changed is the commitment of Opportunity International to fight poverty through holistic financial inclusion.
But everything else is on the table as we relentlessly pursue more effective and impactful means to end the inter-generational transfer of poverty.
Reposted with permission.
Opportunity International provides access to savings, small business loans, insurance and training to 17.5 million people working their way out of poverty in the developing world. Clients in 28 countries use these financial services to expand businesses, provide for their families, create jobs for their neighbors and build a safety net for the future.