Today, the microfinance market in Russia is flourishing. The population has become more preferring loans to microfinance companies rather than bank loans. At the same time, the microfinance market in itself for the Russian Federation is rather young. But every year he is more confident and confident on his feet. Taking into account the existing mistrust of our citizens to new forms of financial relations, it can be assumed that its development in a few years will have a geometric progression. As observed in the last couple of years. Many prominent financial experts predict that in 5-10 years the microfinance industry will be able to grow more than 10 times. Interestingly, in this sense, Russian companies repeat the fate of American and European microfinance organizations. Indeed, over the course of several years, a huge number of companies and offers appeared on the western market, and even during the crisis period, these organizations did not stop their work, continuing to provide the population with the necessary funds. This suggests that the microfinance sector is one of the few that manages to stay afloat, regardless of the financial situation in the country.

Statistics:

At the end of 2018, the microfinance organization’s portfolio grew by more than a third, according to a report from the Bank of Russia "Trends in the microfinance market for 2018". The growth amounted to 45%, from 113 billion rubles at the beginning of the year to 163.6 billion rubles at the end, not least because of leaving small companies from the market (-12% for 2018), which as of January 1, 2019 amounted to 2002 companies (53 IFC and 1949 IWC). It is expected that the number of micro-credit companies in the market will continue to decline and by 2021 the number of micro-credit companies entered in the register of the Central Bank of the Russian Federation will decrease to 1,500 companies, that is, the process in the banking sector will be exactly the same. This trend is due to the work of the Bank of Russia to improve the financial market and the conclusion of unscrupulous and inactive players: the market remains the most stable organizations that comply with the rules of work and comply with the requirements and restrictions established by law. As in previous years, the growth of the market fell mainly on micro loans to individuals. According to forecasts, the dynamics of increasing the number of borrowers in the next few years will average 35% per year. The number of existing contracts in 2018 increased by a comparable 44% - to 9.4 million units compared with 2017. The share of public loans in the total portfolio over the past four years shows a significant increase from 68% to 81%. The volume of micro loans issued in 2018 again became a record - about 330 billion rubles, an increase of 74 billion rubles. compared to the year 2017. In this regard, it is expected that the loan portfolio of microfinance companies will continue to grow due to the continued withdrawal of weak players from the microcredit market, high demand for borrowed funds from Russian citizens, and also due to the influx of client base of closing microcredit companies to large microcredit companies. The growth of the microcredit market in the next couple of years will also be steadily stable, although not as fast as in 2018 instead of 33%, growth will shrink to 26% by the end of 2019, even if regulatory trends remain. "Demand will give rise to supply, and there is a demand for borrowed funds from clients of micro credit companies in almost any economic situation." The country has a huge base for increasing the volume of loan disbursements, and the loan portfolio of companies. In 2018, the development of the online loan segment also continued: over the 12 months this portfolio doubled to 31.6 billion rubles. and accounted for 19% of the MFI's total portfolio. The growth in the volume of online loans, including the transition to the online format of a number of companies in order to reduce costs and business adaptation. The total net profit in the MFI market in 2018 is 10.87 billion rubles.

Summarize:

Microfinance is one of the industry that is actively developing in Russia, having a steady steady growth and net profit of more than 10 billion rubles a year. According to the Bank of Russia, the number of executed effective microloan contracts in 2018 increased by 44% compared with 2017. It is predicted that growth in the services of microfinance companies will steadily rise from year to year by an average of 35% per year. This is largely due to the decline in incomes of the country's population, to the increasing need of people for additional funds to cover current expenses, and to the difficulty of obtaining bank loans.

The microfinance industry shows from year to year a steady and steady growth in demand for its services from the country's population, regardless of the financial situation in the country. One can rightly say that microfinance is one of the fastest growing industry in the Russian market, which has in its baggage enormous prospects for further development.

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