Experts’ Opinion upon Factors Influencing Microfinance Organizations’ Targets: Microfinance Banks vs. Microfinance Institutions

Abstract

Microfinance has always been a debated and documented word as it was considered to alleviate poverty. Since its inception, the main objective of microfinance organization was to maximize outreach for the poor people. Unfortunately in Pakistan these organizations have not been meeting their targets for the last few years. This paper has identified factors that influence microfinance organizations and how experts of microfinance banks and microfinance institutions have rated those factors. Interviews were conducted for identification of factors of microfinance which were rated through fuzzy aggregations technique. Results showed that all factors scored from 1 to 3 except non-commercial funding pattern for microfinance banks because commercially oriented organizations mostly relied upon commercial banks. Governance was the most important factor for both streams because it helped them to tackle their problems.