We’re Dull, Small Banks Say, but Have Profits
I saw this article in the NY Times a month ago and see many similarities with Microfinance banks. In financial services investments broadly, this segment has avoided much of the over-leveraging and troubled asset issues that the larger banks have. That may make them boring, but staying in business, continuing to serve customers and providing returns to shareholders is what we’re supposed to do. It’s what we do in our portfolio companies and what the industry of microfinance is proving to the world – small, simple, profitable banks making a huge impact. I would make one divergence from the article when considering microfinance – working with those living in poverty is NOT BORING.