Proposed model of microfinance services for solving the problem of lack of access to financial services in developing countries

This research paper discusses how to solve the problem of the vast majority of the population in developing countries that lack access to financial services. The proposed solution takes the hypothesis that the lack of access to financial services is mainly due to a supply problem. The business models used by financial institutions operating in developing countries are inadequate and inefficient because they do not allow serving low-income segments in a profitable manner. To address this supply problem it is necessary to develop low-cost business models for the distribution of microfinance services adapted to serve segments of low-income population profitably.