A Message from the Editor

When I graduated from college with a degree in journalism 30+ years ago, I never would have imagined that I'd spend my career in financial services. Yet, due to a combination of personal and economic factors, that's where I landed.

It's been an odd "marriage" you might say, given my personal philosophies place me politically somewhere left of the Democratic Party in America. But I found a niche that grabbed me, and I've spent the last 25 years imbued in the business of payments - the technologies, policies, procedures, legislation and regulations, business practices and people that gird retail and wholesale payment systems (like cards, checks, wire transfers, etc.).

A few years ago, I read a book by Muhammad Yunus (economics professor, Nobel Prize winner and founder of Grameen Bank) and began to wonder how the microfinance model he created might be replicated in Western nations, like the U.S. Soon, the spark that ignited my interest in payment systems 25 years ago seemed to reappear. With a reporter's hunger for knowledge, I devoured (intellectually) everything I could find on the topic of microfinance.

My first stop was Kiva, where I had an opportunity to witness, first hand, the power of micro-credit in developing nations. And I remain an active lender.

I also found numerous sources on the Web - NGOs, the World Bank and scores of microfinance organizations at work in the U.S. and abroad. It was a start, but I soon discovered there was so much more to learn.

Inside Microfinance represents some of the bounty of this initial research. My objective in launching this Web site is to be the independent insider's resource for news and analysis of the microfinance market. As it evolves and matures, Inside Microfinance will become a springboard for those seeking to learn about or contribute to the dialogue on microfinance. Written contributions from professionals and organizations in the field are welcomed and encouraged.

Although much of the dialogue about microfinance, to date, has been focused on emerging economies, there's work to be done in the United States, as well, where some 80 million people lack the financial resources to maintain accounts at regulated financial institutions. This situation has only worsened with the ongoing economic free fall as more families on the financial fringes simply can't make a go of it.

Professor Yunus made a similar point in remarks to reporters in New Delhi earlier this year. The current worldwide financial crisis sprung from the "fragile nature" of the financial structure, he explained. "We have to understand, we can't use this same framework now. We need a different framework where financial institutions have to be inclusive," Yunus argued.

The experience, insight and knowledge acquired these last three decades in financial services, generally, and payments in particular, have led me to this point: where I can chronicle, apprise and contribute to the creation of a new framework for financial services that supports the needs of the estimated 3 billion poor people worldwide.

Imagine any business ignoring that many potential customers and still remaining viable. Well, that's exactly what the financial services industry has done. There are signs, however, that may be changing. Our goal at Inside Microfinance is to chronical this change. We wanf to be your go-to place for insider views and analysis regarding micro-credit and related services for the unbanked and financially underserved.

Here's to prosperity through understanding and service - Patti

Americans use nonbanks to cash $60 billion in checks yearly

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