Publication Date


Document Type


First Advisor

Barsema, Dennis

Degree Name

B.A. (Bachelor of Arts)

Legacy Department

Department of Management


My paper will focus on the emergence of Credit Bureaus in Latin America (Mexico specifically) due to Micro finance. It will address the importance of Credit Bureaus and how they can help Micro Finance Institutions (MFIs) become more sustainable. Microfinance is a way to lift the world out of poverty by providing financial services for low-income individuals. Microfinance institutions (MFIs) have begun to emerge all over the world in underdeveloped countries. In order for MFIs to be sustainable and have the ability to scale, they must have access to their client's credit history. The credit report allows them to make an accurate decision regarding the client's creditworthiness. They are able to charge appropriate interest rates and loan sizes based on the report. This allows the commercial banks to run successfully and make essential business decisions. The same concept applies for MFIs, yet the problem is that in many undeveloped countries in Latin America (specifically Mexico), credit bureaus are either unavailable or inaccessible to a large number of the providers. Minimal banking institutions are open to the sharing of information. The development and ownership of credit bureaus in these areas can make a significant difference in the microfinance sector. Credit bureaus can benefit the microfinance sector in many ways including diminishing risk, creating a lower transaction cost, assist in making more informed decisions, ect. Credit bureaus give MFIs the opportunity to scale and can potentially lower the poverty rate.


25 pages




Northern Illinois University

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