This paper proposes an architectural design for a microfinance service delivery network. It emphasises that savings followed by credit, insurance and money transfer, in descending order of priority, are the most important financial services needed by the poor. Microfinance may be classified as primary and secondary. Whereas the primary microfinance service includes savings, credit, insurance and money transfer, the secondary service includes enterprise credit, pension, equity transaction, leasing, etc. The paper then argues that competition with compassion and right to earn profit under the lens of a rational regulatory and supervisory framework and governmentâ??s active participation in capital formation, both human and physical, are the major forces necessary to fuel the healthy, sustainable and useful growth of microfinance institutions. The paper finally proposes a layout of the MF network, defining the roles of different entities, viz, government, central bank, microfinance authority, banking partner, rating agency, deposit insurance agency, promoter, capital provider, human capital building institution and, finally, MF clients.
