Microfinance has been criticized. As global banks move into the market, many worry that the social roots of the process will be lost. For example, CompartamosBanco, a Meixcan microfinance-focused bank, was criticized for using an initial public offering to raise $1 billion in credit. Professor Yunus started microfinance by doing the opposite of what banks do. CompartamosBanco instead acts more like a bank, including charging high interest rates of up to 80% per year. Other critics point out that many microfinance borrowers may have been successful without the loan. The loan is not the root of their success. Instead, their success resulted from successful business and marketing strategies coupled with a great deal of hard work. Even accounting for the criticisms and changing nature of microfinance, Professor Yunus started a significant social and financial movement. Providing access to credit has the potential to help pull least-developed countries out of poverty and increase purchasing power for billions of consumers. The vast implications for international business and marketers continue.

1. Do you agree with the criticisms regarding banks moving into microfinance market? Why or why not?