SKS Microfinance founder Vikram Akula and Grameen Bank founder Muhammad Yunus present two very different viewpoints on how to scale microfinance at a fascinating recent panel at the Clinton Global Initiative conference.
The main difference between the two has less to do with whether microfinance should be for profit or not, but who the profits should accrue to. While Akula makes a convincing case why there is no conflict in maximising returns for shareholders and offering the best possible deal to borrowers, Yunus believes that, in the long run, the financial returns focused investors in SKS would force the company to move away from doing what's best for the poor.
You can view the full video of the session here
For more on this debate, check out the post on David Roodman's Microfinance Open Book Blog here
Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports.