Microfinance by Mario La Torre and Gianfranco A. Vento

Abstract

In recent years microfinance industry has experienced tremendous growth both in developed and developing countries. This growth has encouraged greater professionalisation of the industry into mainstream media by expanding the avenues and forums for discussion and debate. In contributing to this debate Maro La Torre and Gianfranco A. Vento wrote a book titled: “Microfinance”. The book discusses microfinance in modern taxonomy by looking into the recent and future challenges and microfinance risk management. The book is divided into nine chapters presenting the contemporary conception of microfinance, products and services offered in modern microfinance, the key structures and features of microcredits. Other chapters discuss the sustainability and outreach, microfinance risk management, microfinance processes and performance monitoring. The discussions in these chapters are of greater value to students, instructors and all microfinance practitioners. Despite the meticulous discussion provided, the book has some flaws including broad and thorough discussion on the classified main three categories of microfinance namely; formal, semiformal and informal institutions, a discussion on the influence of technological innovations that provide digital transformation role in delivering financial, health, and education services to the poor. Furthermore, a rigorous discussion of microfinance risk management is missing, no insights have been provided concerning gender issues and women participation in microfinance activities particularly in the rural communities. Based on the aforementioned critics, it is recommended that in the revised version the authors should take into account the flaws noticed to enrich the usability of the book. However, the review has established that, the book is still an important resource for university instructors and students especially for those pursuing microfinance disciplines and rural development practitioners.