The SKS IPO is a microfinance milestone: the first IPO of an Indian microlender – an event big enough to be covered by the international media.  When the first IPO happened in Mexico in 2008, Banco Compartamos was attacked for its high interest rates and (arguably) excessive profit rates, with Muhammad Yunus leading the charge.

In a previously posted video, FAI’s Jonathan Morduch talks about providing the “ultra poor” – people who live on $1.25 a day or less – with financial services.

Can the poorest be reached with finance? “Ultra poor” members of society face a series of constraints and deprivations that distinguish them from the general poor. Limited social networks, chronic malnutrition, and reliance on patronage systems characterize a socioeconomic class that is hard to “bank.” Research now indicates that most microfinance institutions serve poor and lower-income customers, but not the poorest.

If you’re visiting our site for the first time, here are a few things you might want to know about us. First off, we’re researchers (economists, specifically) – but wait, don’t stop reading yet!  We promise we don’t spend all our time talking about widgets and the marginal utility of lemonade stands.  Like you, we care about improving the lives of the world’s poor and believe that increasing access to finance is a great way to help do this. So please keep reading – we think you’ll find we have a lot in common.