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Working Paper 199 - Microcredit for the Development of the Bottom of the Pyramid Segment: Impact of Access to Financial Services on Microcredit Clients, Institutions and Urban Sustainability


It is clearly evident that the bottom of the pyramid (BOP) segment lack financial access which limits their abilities to invest and increase their income. Research done on access to financial services by the poor has shown that access to financial services by this segment can be an instrument towards poverty alleviation (Klein, 2008). This is because, access to financial services increases people’s choices which play an important role in empowering the poor. Microfinance services allow poor people to move into a more proactive mode that enables them to get protection against risks ahead of time and opens up new opportunities (Cohen and Sebstad, 2003). The benefits of microfinance investments revolve around empowerment of the poor as it provides economic freedom and the ability to make choices.

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