Thinking Outside of the Organizational Box: Institutional Innovation in the Sustainable Provision of Microfinance Services

This paper talks about the unique institutional innovations microfinance has experienced in the last three decades - from the entry of new companies like telecommunication providers and creative partnerships between banks and non-banking entities to the transformation of NBFCs into microfinance banks and the downscaling of mainstream banks to micro-banks. The author highlights the classification of microfinance institutions into banking and non-baning entities and talks in detail about the institutional innovations accompanying the conversion of a non-banking MFI or a mainstream bank to a microfinance bank.