Microfinance and Inclusive Finance: Building a More Equitable Financial Future

The global microfinance market continues to expand as a cornerstone of inclusive growth and economic empowerment. Recent industry research projects the market to grow from US$200 billion in 2022 to over US$506 billion by 2030, at a strong CAGR of 12.3%. This growth highlights the increasing importance of financial inclusion, particularly for micro, small, and medium enterprises (MSMEs) and individuals without access to traditional banking. At AKT Inclusive Finance (AKTIF), we are proud to be at the forefront of this transformation — advancing Islamic microfinance, digital inclusion, and impact-driven investment across global markets.

Technology and Innovation: Redefining Access

Digital transformation is reshaping the financial inclusion landscape. Technologies such as AI, blockchain, and mobile finance are expanding the reach and efficiency of microfinance institutions (MFIs). At AKTIF, we help our partners embrace these innovations through: Fintech integration and digital strategy development AI and data analytics applications for improved risk management and financial transparency Blockchain-enabled microfinance solutions that enhance trust, traceability, and access for underserved clients These advancements are particularly valuable for extending Islamic financial services to remote and rural communities through mobile banking and digital payment systems.

Market Outlook

Banks and non-bank financial institutions (NBFCs) are both witnessing strong growth, with banks projected to reach between US$331 to $506 billion by 2030.

The sector is evolving through digital transformation, leveraging technologies such as AI, blockchain, and mobile banking to enhance accessibility and efficiency.

Mobile payments and fintech partnerships are helping microfinance institutions extend their reach into rural and underserved areas. Islamic microfinance and microinsurance are gaining prominence, expanding financial protection and inclusion across diverse regions.

Key Industry Trends

>Growing digitalization and data-driven models are reshaping microfinance operations.

>AI and big data analytics are improving credit assessment and operational transparency.

>Blockchain-based microfinance is emerging as a potential solution to bridge SME financing gaps.

>Climate finance and impact investment initiatives are increasingly integrated into microfinance strategies.

Overall Islamic Finance Market Projections

The global Islamic finance market was valued at over $5.4 trillion in 2024 and is expected to grow to approximately $9.31 trillion by 2030. Some estimates place the projected asset value at $9.7 trillion by 2029, with an average annual growth rate of about 10%.

The overall global Islamic microfinance market (all MFIs, conventional + Islamic) is not radily available but some reports in recent market research estimate this, at roughly $10–20 billion. The sector is considered an important and growing niche within Islamic finance, particularly for SME financing. Growth is driven by factors like the increasing recognition of the role of SMEs in economic development and the demand for Sharia-compliant products.

A Global Outlook: Growth, Inclusion, and Impact

The future of microfinance lies at the intersection of inclusivity, innovation, and impact.
As the global economy adapts to inflationary pressures and post-pandemic challenges, resilient and tech-driven financial ecosystems are emerging as key drivers of sustainable growth.

AKTIF’s expertise and commitment place us in a unique position to:

Support financial institutions, investors, and policymakers in building inclusive systems

Align microfinance strategies with UN Sustainable Development Goals (SDGs)

Ensure that financial inclusion remains ethical, equitable, and sustainable

Challenges and Opportunities

While global economic uncertainties, inflation, and post-pandemic effects pose challenges, the long-term outlook remains optimistic. Institutions that embrace technology, innovation, and inclusive policies are well-positioned to thrive. Collaboration between MFIs, fintechs, and development partners will be crucial in scaling sustainable financial ecosystems.

Partner with AKT Inclusive Finance

At AKT Inclusive Finance, we believe financial inclusion is more than access — it is empowerment. Through our advisory, investment, and digital training services, we help our partners create meaningful impact while achieving sustainable growth in the evolving world of Islamic and inclusive finance.

📩 Connect with us to explore partnership opportunities, digital transformation solutions, or investment collaborations in inclusive finance.

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