Village banking is a microcredit and saving methodology whereby financial services are administered locally in a community bank rather than in a centralized commercial bank. Village banking has its roots in ancient cultures and was most recently adopted for use by micro-finance institutions (MFIs) as a way to control costs. Early village banking methods were innovated by Grameen Bank and then later developed by groups such as FINCA International founder John Hatch. Among US-based non-profit agencies there are at least 31 microfinance institutions (MFIs) that have collectively created over 800 village banking programs in at least 90 countries. And in many of these countries there are host-country MFIs—sometimes dozens—that are village banking practitioners as well.[1] [2] The latest developments globally can be seen in Southeast Asia (e.g. Laos), where digitization is pacing fast to reach rural areas with hybrid on- and offline solutions. [3]
- ^ ""A Brief Primer on FINCA", a lecture by John Hatch at the University of Berkeley's Haas School of Business, July 21, 2004". Retrieved 2007-04-24.
- ^ "Village Bank Handbook" (PDF). GIZ. Retrieved 2024-07-22.
- ^ "Villages start digital, modern Village Banks". US Embassy in Laos. Retrieved 2024-07-22.