Microfinance has been successful in alleviating poverty in developing countries. We all are acquainted with the success of Prof. Muhammad Yunus's Grameen Bank. How it helped shaped the financing for poor and a lot of other institutions have developed in many developing countries on the African continent to the Asia.
But for this challenge, I wondered how microfinance can help the aging segment. And after my research on google scholar, I stumbled upon a research paper by Prof. Stuart Rutherford at University of Machester, UK. In his paper, he talks about how microfinance can act as micro pensions for the aging population in developing countries. But, Can we bring Micropensions to developed countries with people with worst credit history or who are not able to support themselves by any means? As Microfinance was a successful Reverse Innovation in terms that it was successful in low-income neighborhoods of New York. This establishes a case for Micropensions and how effectively can Micropensions be implemented in low-income segments or people with worst credit (who are not eligible for any financial service).
For more information on Micropension, visit the source by clicking here.
Do let me know your thoughts on Micropensions and what challenges exists for its implementation?