Can microfinance crowdfunding reduce financial exclusion? Regulatory issues
Abstract
Purpose
The purpose of this paper is to discuss how regulatory environment can be a fundamental constraint or lever in defining the scope of operations of a social innovation.
Design/methodology/approach
Semi-structured interviews with top-level executives of pioneers of crowdfunding were run in India and France, two of the three leading countries in this field.
Findings
Four main issues rise: choice of legal status, constraints for the operations model, compliance with anti-money laundering measures and challenges in marketing and sustainability.
Originality/value
This paper contributes to knowledge advancement in the field of this new funding actor that could challenge the banking system. This is the first paper to explore these regulatory issues and their impact on marketing practices.
Keywords
Acknowledgements
The authors would like to acknowledge the financial contribution of Banque Populaire of Bourgogne-Franche Comté and FNBP (Fédération Nationale des Banques Populaires), Conseil Régional de Bourgogne, ICSSR (Indian Council of Social Science Research) and FMSH (Fondation Maison des sciences de l’homme) for supporting the conduct of this research.
Citation
Marakkath, N. and Attuel-mendes, L. (2015), "Can microfinance crowdfunding reduce financial exclusion? Regulatory issues", International Journal of Bank Marketing, Vol. 33 No. 5, pp. 624-636. https://doi.org/10.1108/IJBM-06-2014-0080
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited