The beginnings of microfinance are best traced to Muhammad Yunus and the Grameen Bank.

While teaching Economics at Chittagong University in Bangladesh, Professor Yunus realized that many of the people around him could be helped with a loan using the change out of his own pocket. These initial loans showed him that people can borrow small amounts of money, invest it effectively, repay it successfully, and drastically improve their livelihoods.

Building upon this initial success, he started the Grameen Bank. By 2002, 16 years after its inception, the Grameen bank had over 2.4 million clients. Together, Muhammad Yunus and the Grameen Bank were awarded the Nobel Peace Prize in 2006, emphasizing the revolutionary effects microfinance has had on economic development.

The success of microfinance has not been limited to the Grameen Bank or to Bangladesh. Today, microfinance reaches over 48 million clients throughout the Americas, Africa, Europe, and Asia.