So, with the Crunch, I blogged that it’ll be big to start a bank, now that so many have suffered nasties.
It’s also been a long held theme of mine that we can learn a considerable amount about wealth management from people who have no money. On my hit list for research was Muhammad Yunus and his Grameen Bank. After all, he won the Nobel Peace Prize in 2006 for his work on helping finance the poor of Bangladesh.
Well. You don’t need to look much further than a recent FT feature on the Microfinance movement to get a grounding. I think this kind of short term, gap funding will be a massive growth market as the banks suffer indigestion, constipation and public ownership.
The FT piece debates the high interest of Microfinance Firms – now a movement with $2.5billion revenues – and pits this against the world of less moral scruples: Loan Sharks. Is there a difference? There is certainly a risk/reward ratio that is comparable.