Remote sales channels are expanding mainly due to the technological capabilities of large companies. The share of online loans issued by microfinance organizations (MFOs) in the quarter increased from 81% to 84%, while in the «payday» loan segment, it accounted for 96%.
The loan portfolio of MFOs continued to grow (+7% compared to the previous period) against the backdrop of increased consumer demand. Companies have adapted to regulatory restrictions and increased the offering of medium-term loans. Most of these loans in terms of amount and total cost of credit are comparable to short-term loans.
Entrepreneurial microfinancing developed rapidly: the volume of loans issued to small and medium-sized enterprises (SMEs) increased by 22% in the quarter amid demand from marketplace-participating companies.
To expand access for SMEs to microloans, the Bank of Russia is discussing with market participants the possibility of designating entrepreneurial financing companies as a separate segment of MFOs. They may have the limit on the maximum loan amount lifted and increased funding capabilities.
For more details, read the «Overview of Key Indicators of Microfinance Institutions» for the II quarter of 2024.
Photo on preview: Shalrumpon Onnongwa / Shutterstock / Fotodom