Combined microfinance: a conceptual approach revealing relevant knowledge gaps

Globally, many microfinance schemes (MFIs) are gradually shifting their focus from loans-only to multiple financial products, including insurance and savings. This phenomenon, which could be described as combined microfinance (CMF), has received relatively little research attention by recent literature despite its increasing relevance. This paper builds on a historical literature review on savings mobilisation and recent work on microinsurance and microcredit. It is a first conceptual attempt to bring forward the characteristics of CMF in the reviewed inclusive financial systems approach to microfinance. It questions the potential effect of CMF on its various stakeholders and highlights possible positive and negative effects on economic and social performance. Policy and donor support have a stake in accessing more evidence on the possible effects of CMF on the intended development outcomes, aiming at both maximizing social and economic results.