Career opportunities in microfinance industry

For those of us who live in urban areas, we are lucky enough to get our banking needs attended to with a click of a button. Yet, there are pockets of our country where many people don’t have any access to the modern banking amenities we are used to. A country’s growth is directly dependent on its economic development. The banking sector plays a vital part in our progress. So it can be disheartening to see so many setbacks that arise from a lack of infrastructure and awareness in rural areas. It is unfair when a large part of a country does not receive the same benefits and opportunities their urban counterparts get.

The government has created initiatives that help with financial inclusion across India through microfinance. It is a banking system that aids underprivileged individuals. They receive the facilities and tools they need to improve their financial conditions.

Microfinance is slowly empowering people in small towns, isolated villages and low-income demographics. If we want India to develop at an accelerated rate, we need to ensure that no section of society is marginalised. Microfinance is bridging the financial divide between the urban and rural sectors. In fact, reports reveal that over 2.65 crore people have taken small business loans in the Microfinance industry. These loans can help develop small-scale industries, improve farming facilities and make a significant impact on the lives of these people. The Microfinance industry is expected to see immense expansion. Which means there will be more job opportunities available as well. If you have a mind for finance and a passion for progress, a career in Microfinance may be for you.

Career profiles in the Microfinance industry

1. Risk management and assessment

The banking and investment sectors come with a fair share of risks. This isn’t just in the urban areas, too. The Microfinance industry can also be subjected to financial challenges. Professionals who understand the nuances of this industry can assess the risks better. As a risk manager, you should be able to carry out the due diligence and verify the financial process involved. You also set up the list of risk limitations, compliance regulations and evaluation procedures. A risk profile of the loan applicants is also required to ensure they have the means to repay the money. Risk management is an interesting career in Microfinance and can be very rewarding too.

2. Financial analytics

Data analytics has proven to work miracles in the urban financial sectors. So why should rural finance be any different? The microfinance industry is in dire need of quality data experts who can help them reach optimal efficiency and productivity. Through analytical tools and techniques, finance professionals can gain in-depth insights about portfolio features, risk profiles and collection patterns. Financial analysts are also responsible for creating digital KYC, digital loan applications and data transfers. This speeds up processes and streamlines financial ventures in rural areas. As an added benefit, financial analytics can also help lower the cost of operations. It is definitely one of the top careers in microfinance to consider for your future.

Become a champion of financial analytics in just 6 months

3. Business Development

The lack of development in the rural sector can be a positive in the right context. By that, we mean there is a lot of scope for advancement and expansion. Microfinance professionals who understand this are constantly on the lookout for business opportunities. Sanitisation, water supply, housing projects and even solar-panelling are some business deals deserving of loans. It also helps to be proficient in rural marketing and strategic business plans. If you think you have what it takes to travel to the remote corners of India and enhance their way of life, then this is a good job for you. Business development is one of the careers in Microfinance which offers great prospects.

4. Tech Development

Technology has revolutionised the way the finance industry operates. Imagine what it will do to Microfinance. The digitisation of traditional banking operations can dramatically change the lives of people living in small towns and remote villages. From online applications, electronic transfers, e-documents and loan underwriting, life gets simpler for the average rural dweller. Technology can expedite the process, limit waiting time and modernise all banking procedures. Professionals such as tech developers, software engineers, database managers and app developers are some of the in-demand careers in Microfinance.

5. Accounting and Finance

Where would big businesses be without accounting departments? A competent company needs a reliable accountant to ensure its fiscal health. Similarly, banks and lending companies that are setting up shop in rural areas also require a strong accounting and finance team to help them with their paperwork. If you are interested in applying for one of the accounting careers in Microfinance, your job will be to allocate budgets, monitor all costs, create projections and analyse business plans for financial viability. Some of the professionals who work in this field are responsible for all the monetary responsibilities in the microfinance companies.

How Proschool can help with careers in Microfinance

As one of India’s top coaching institutes, IMS Proschool offers a variety of courses that can help you work in Microfinance. Some of the certifications include

• Financial Analytics course
• Financial modelling course
• ACCA course
• Business Analytics course

These programs offer a comprehensive syllabus which is relevant to the industry today. Proschool also ensures students are taught by industry experts with considerable experience in their respective industries. What makes Proschool unique is that it prepares students for the real world, not just exams. If you apply here, you will discover a unique learning experience that includes active methods and hands-on training. Proschool doesn’t believe in preparing students only with knowledge but rather the application of that knowledge. This is especially critical if you are planning a career in Microfinance, and you need to be ready for multiple challenges.

Highlights of learning with Proschool:

• Excellent faculty and facilities that ensure superior learning techniques.
• Students can attend classroom sessions in nearby locations or log in online for virtual classes.
• Additional resources such as online videos, prep books, mock tests and practice papers are available.
• Proschool also has a placement program where all certified students can apply for jobs in the industry of their choice.
• The staff also helps with teaching interview etiquette and professional resume writing.

Can’t decide which course suits you best? Let’s have a chat and figure it out?

FAQs

What is the biggest problem in the microfinance industry?

One of the issues is the risk of bad debts. Many loans are given without collateral or due diligence. The industry requires professionals who understand the need for organised regulations along with proper financial planning. An influx of certified professionals who understand the importance of proper documentation and organisation can help overcome this hurdle.

Can microfinance lower poverty rates in the country?

Microfinance is a very effective tool that empowers rural farmers and workers to engage their livelihoods. Through loans and other financial assistance, rural dwellers can overcome poverty and improve their standard of living.

What are the advantages of Microfinance?

Here are some of the benefits of the microfinance industry:

• Offering loans to improve rural infrastructure and business ventures.
• Reaching out to an ignored and underdeveloped section of society.
• Better access to credit.
• A more organised structure for banking purposes.
• Creating jobs
• Increasing investment opportunities in rural sectors.

Conclusion

The future is looking very bright for the Microfinance sector in India. While it is an underdeveloped industry, the potential for business opportunities and growth is quite immense. If you have the skills, dedication and commitment to making a difference, then maybe a career in Microfinance is the right choice for you.