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Competition Works: Driving Microfinance Institutions to Reach Lower-Income People and the Unbanked in Peru

Competition from commercial banks is prompting microfinance institutions in urban areas ofPeru and other Latin American nations to provide more service to lower-income groups. Wherehigher-income clients are already served by commercial banks, microfinance institutions competeby attending to a new demographic, while continuing to serve higher-income clients wherecommercial banking services are scarce.