interesting question...

I think is because of the following...

1. Is difficult to get relevant and updated data on the microfinance sector

2. they are based in developing countries where top journals have issues with data validity and reliability

3. Each micro in finance have different orientation and operational style so is difficult to generate homogenous findings.

Notwithstanding these limitations, some journals mostly (development journals ) are ready to consider studies on microfinance.

If you have a good database, we play around it and see how it goes

All the best

My guess is, some of the parties involved in the process prefer the microfinance market to go on unregulated and prefer secrecy over transparency which limits the data available for research. In general, this sector is a promising sector, but if remained under-regulated, it will lead in the future to unfortunate consequences (the inability to repay and then the bankruptcy of all parties involved and the consequent political, social, and economic costs). As per the high cost of microfinance, I allude to your other question on microfinance and economic activities.

You are correct Manhal Shotar .

I share some of the previous comments that have been made (lack of data, especially). Yet, I'd nuance what has been said so far for two reasons, especially. First, the academic interest has been growing for a number of years: in the 90s, academics studying microfinance were very few and there was not so many events related to microfinance organized. Nowadays, you can find so many events (both academic and from practitioners) that are organized to discuss microfinance-related issues. Second, data is lacking, of course. Yet, some initiatives have been undertaken and the situation is getting better and better. The MIX Market, although it has collapsed and had defaults, is a great example. The ATLAS initiative is now growing, and must be a success for the industry to keep evolving.

In addition, there are nowadays various interesting research centers dedicated to microfinance (CERMi, CERSEM,...), that all have emerged relatively recently. 10-15 years ago, they were not there, proof of the evolution of the interest in microfinance. Yet, I agree that the industry has known a beautiful increase in interest from academics a few years ago, but this in terest, although lower, is still present.

The industry which cater larger beneficiary group has lots of academic significance. However, apart from non-availability of data (except large scale lenders) as well as the heterogeneity of outcome, the spatial distribution of beneficiary/ data, access are the major hindrances to conduct survey-based research. The subsequent methodological constraints might also have bearing on the reliability as well as validity of the most the primary level research in this domain.

My opinion to this is the fact that microfinance institutions in most developing countries ain't regulated and if regulated at all, with minimal interference by the regulatory body when compared to other financial institutions, hence, affects the industry in:

1) Growth

2) Access to vital data since majority of them have no database, hence, genuity/ validity of data is uncertain

Good research requires funding from the support/sponsoring agencies. Due to the lack of support from the microfinance industry not many takers for research in this industry. Moreover, research in development sector requires a lot of zeal from the researcher side which is clearly missing.

Dear Emmanuel,

I also share the opinions made previously.

1. There is little or scarcity of data in the field. But if you really want to work in that field, you should make use of primary data i. e. the use of questionnaire or face - to - face interview to get reliable data.

2. Each organization have a different operational system which make data collation difficult.

3. Lack of support from the microfinance industries. Most of them do not disclose genue information from the researchers.

Regards

Lack of sufficient data is actually a hindrance. But the impact of microfinance sub sector is somehow limited due to the segment of the economy that it serves. That's a limiting factor in stimulating interest from the academia. But as with some other sectors, research interest in micro finance has increased in recent years.

Microfinance generated a lot of enthusiasm in the early 80's with the Grameen Bank of Yunus. It was then seen as the solution for the financial inclusion of the poor. Today, it is clear that it is not the panacea we saw in it. Indeed, torn between social performance and financial performance, it is currently struggling to achieve the expected objectives (see Jégourel, 2008) to the point where it is criticized for serving only "the richest of the poor". This may explain the growing lack of interest in microfinance. In addition, digital financial services are producing promising results and are attracting the attention of researchers and international donors.

It may be uninteresting for research funding agencies, but it is certainly the opposite for the majority of the population in countries like India or Latin America.

The Microfinance Sector does attract researchers a lot yet there have been countless unsuccessful efforts by researchers to access data both primarily and secondarily due to poor regulation and supervision by regulatory authorities hence lacking transparency and diligence.

Considering the major role Microfinance plays in poverty alleviation and economic growth through the provision of suitable financial services for SMEs, I encourage a persistent and enduring effort to close the literature gap there is...

In addition, I am available for research work on the Microfinance Sector (Africa)

There is very little interest in microfinance in the academic community because there is strong evidence that the microfinance model is failing or has failed. The micro-finance model has been replaced with the digital-finance model

The microfinance model has been overtaken by the digital-fintech model of financial inclusion. There is a lot of research in financial inclusion in the World Bank (including data base) and Alliance for Financial Inclusion (AFI) are institutions promoting such studies. The answer to your question depends on what you see as the heart of microfinance. The essence of microfinance has been described as “delivering useful financial services to tens of millions of people in a businesslike way.” This is akin to “providing financial services in a way that helps people move themselves out of poverty.” Financial inclusion seeks to make sure that everyone has access to useful financial tools, while microfinance wants to make sure that the use of those tools leads to positive benefits for those living in poverty. Defined this way, microfinance links in with other development needs, like health, education, housing, and access to markets.

https://www.researchgate.net/profile/Bharat_Dhungana/research

MF field is more popular in developing countries where there is poor financial inclusion. However, MFIs have suffered from diverse nature of problems and has been gradually drifted away from the social mission. So, academicians and researchers should create this field more interesting.

Actually financial inclusion in the form of microfinancing or better to be called social financing is mostly available in the form of payment for 'Zakat, Sadaqah and Waqaf' in many Muslim societies.

First one is obligatory act of 2.5% for able Muslims to pay annually to fulfil the 5th pillar of Islam. However the last two are voluntarily done by others for fellow Muslims. Being said so, many Muslims either don't fulfil this obligation due to reasons better known to them. But it is obviously known reason that many governments not friendly to Muslims such as in India, do not recognize it and Muslims are doubly taxed by paying income tax on top of the payment of 2.5 zakat for improving the financial condition of unbankable people.

Nevertheless, countries like Malaysia allow to claim reimbursement from tax payable for the exact amount of payment of Zakat with proof of receipts can be produced with such an amount....

Moreover, there is less data for empirical analysis for the area compared to commercial banking in African continent.

As many of you have identified as a digital solution to the Micro Finance issues in terms of FinTech of modern time. We have empirically studied Zakat distribution using the mobile banking on selected group of recipients in one of the states in Malaysia. The paper was published....

The same is the case here in Pakistan, it has received little attention.

This is a unique area that has to be concentrated for the development of the rural and urban people. The digital fintech model concentrates only to the urban population. There is less awareness among the academic community on the microfinance sector and how it performs. The microfinance model (Grameen Bank) of Bangladesh given by Muhamad Yunus and he is the awardee of noble prize for this model. Hence the academic community has to to aware of this model and can concentrate and lot of data are available and collecting the data also made easy now a days

It is an emerging discipline. It takes time to popularize.