Why is the microfinance sector under scrutiny by the media now?

• Specifically, the main concerns which arise in the media regarding microfinance are over-indebtedness, interest rates, a lack of transparency, reaching the poor and the creation of jobs. The media and the public want to know: do the lives of people taking out microloans really improve?
• For many years Oikocredit was almost alone in financing microfinance institutions. As other actors began to invest, many became distracted by obtaining a profitable return on their investments and were less concerned with social results. These organizations often prefer to collaborate with large, urban microfinance institutions with solid track records and low risk ratings.
• Oikocredit strives to deliver financial services to those who do not have access to regular banks. We prioritize investments in small, often rural based organizations with a proven social impact and as a result, more than 50% of our portfolio is in small to medium-sized microfinance institutions.