5 Microfinance platforms empowering the underbanked in Europe

By Gloria Methri

Microfinance is a powerful tool for financial inclusion, offering essential financial services to individuals and small businesses who typically lack access to conventional banking. The main objective of microfinance institutions (MFIs) is to foster financial independence and stimulate economic growth by enabling those excluded from traditional systems.

Even today, achieving financial inclusion remains a significant challenge for underprivileged communities, economically disadvantaged households, the unemployed, and other financially vulnerable groups.

Microfinance encompasses various services, such as savings and checking accounts, fund transfers, micro insurance, and microcredit, aimed at empowering individuals and entrepreneurs in underserved communities. Originally focused on microcredit, microfinance provides small loans to individuals without a steady income or credit history, aiming to kickstart entrepreneurship and support small business initiatives.

Let’s look at five microfinance companies driving financial inclusion in Europe

• ABLE Platform

ABLE Platform is a financing platform that offers a white-label lending solution for retail and commercial lending businesses. With ABLE Platform’s microloan software, businesses and individuals can swiftly score and decide on loan applications. Specifically tailored to address the unique requirements of micro-lending, the software offers flexibility and scalability to adapt to a business’s evolving needs.

• Bling

Bling is a Berlin-based family FinTech app that offers digital solutions for payment, investment, and mobile communications. The app was founded in 2021 to help improve the financial and media literacy of children and families. In addition to educational modules, Bling helps parents do financial planning and allows children to set up saving goals and earn money via chores and errands.

• FinMarie

FinMarie is a German FinTech company that offers financial services for women, including financial education, investment tools, and coaching. It is the first online investment solution designed specifically for women’s needs. The solution considers data about women’s financial situations, including gaps in salary and pension. It offers coaching sessions and personal financial advice to help women stay in control of their wealth.

• Oikocredit

Oikocredit is a social impact investor promoting sustainable development through investments in financial inclusion, agriculture and renewable energy. As a social investor, Oikocredit empowers low-income people to improve their livelihoods. To do this, Oikocredit supports partner organisations in developing countries through loans, equity investments and capacity building. Oikocredit has investments in over 70 countries worldwide, with its international office based in Amersfoort, the Netherlands.

• Peaks

Peak is a micro-investing app that allows users to set aside small amounts of money and invest those finances in a globally diversified portfolio. The app helps users invest small amounts of change or larger amounts or schedule regular payments. It allows users to invest without needing to know about financial markets or investments and still get a good return on their savings. After two successful years in the Netherlands, Peaks launched in Germany with the mission to make investment widely acceptable.