Purpose, Capital and the Future of Microfinance: How Can Institutions Stay Mission-Driven?

MFC Annual Conference 2026: The Capital Question: Safeguarding Purpose in Times of Transition Session

Speakers: Archil Bakuradze – Council Chair, Microfinance Centre; Member of the Supervisory Board, Bank Crystal (Georgia), Sébastien Duquet – Director, Mirova, (France), Olga Tomash – Founder, Tomash Consulting (Netherlands), Nicolas Blondeau – Fund Manager, Inpulse (Belgium), Thomas Eriksson – Regional Director for Eastern Europe, Central Asia and the Middle East, Green Climate Fund

Financial Inclusion Is Evolving Not Disappearing

According to the panellists, financial inclusion in many European and neighbouring markets is no longer simply about access to financial services. While access has improved significantly over the past decades, the focus is increasingly shifting towards responsible financial services, fair pricing, client protection and ensuring that finance genuinely supports people’s economic resilience and wellbeing. Institutions need to adapt to changing client needs while remaining focused on empowering underserved communities.

Impact Capital Is Becoming Harder to Access

The investment landscape is changing. Investors are increasingly directing capital towards domestic priorities, defence, artificial intelligence and other emerging sectors. As a result, competition for impact-oriented funding is growing, and microfinance institutions need to demonstrate their value proposition more clearly than ever before. Speakers stressed the importance of remaining authentic, communicating impact transparently and avoiding the temptation to present organisations as something they are not.

Climate Finance Could Open New Doors

One of the strongest messages from the session was that climate finance represents a major opportunity for microfinance institutions. From climate-smart agriculture and water management to energy efficiency and resilient housing, MFIs are already working with clients who are directly affected by climate change.

The challenge is to better connect these activities with climate finance providers and demonstrate measurable climate outcomes. Strong partnerships, simple impact measurement systems and clear investment strategies will be essential to unlocking these opportunities.

Growth Must Not Come at the Expense of Purpose

Several speakers challenged the assumption that growth should always be the primary objective. While expansion can increase outreach, it can also bring pressure to attract new investors and make compromises that dilute an institution’s social mission.

The panel argued that success should not be measured only by size. For many organisations, deepening impact, improving service quality and reaching underserved segments may be more valuable than pursuing rapid growth.

Preparing for Ownership Transitions

The EU's Message: Stay True to Your Social Mission

The session concluded with a strong message from the European Commission. Poverty reduction, support for women, vulnerable groups, rural communities and financial inclusion remain central European priorities. Participants were encouraged not to move away from their social mission, but rather to continue demonstrating the value microfinance brings to individuals and communities across Europe and beyond.

Key Takeaways

Financial inclusion is evolving from simply providing access to finance toward delivering responsible financial services that are fair, transparent, and client-focused.
Access to impact-aligned capital is becoming more challenging as investors increasingly prioritise sectors such as defence, artificial intelligence, and domestic investments.
Climate finance presents significant opportunities for microfinance institutions, particularly in supporting climate adaptation, resilient agriculture, renewable energy, and energy efficiency at the local level.
Institutions should remain authentic to their mission and clearly communicate their social value rather than rebranding themselves to follow funding trends.
Ownership transitions require careful planning from the outset to safeguard institutional purpose and avoid mission drift when investors exit.
Growth should not be pursued at any cost; organisations should balance expansion with maintaining quality, governance standards, and social impact.
Strong governance, transparent impact reporting, and clear social objectives are essential for attracting mission-aligned investors.
The European Commission reaffirmed that poverty reduction, support for vulnerable groups, gender equality, and rural inclusion remain central priorities for European microfinance policy.