Author(s): Mohd Sobri Minai, Yusnidah binti Ibrahim, Hisham Bin Mohammad, Sharifah Norzehan Syed Yusuf
Microfinance Institutions (MFIs) play an important role in alleviating poverty. Importantly, the key measure of success for any MFI is financial self-reliance. Therefore, improving profitability may secure the financial sustainability of MFIs, but it raises concerns about shifting their mission to help the poorest. This phenomenon is generally referred to as mission drift in the microfinance literature. This review study critically examines the major concerns based on a literature review and deliberates on how MFIs can retain their social mission while making good profits. Moreover, it also discusses the role of institutional investors in preventing mission drift. This study will benefit the MFIs, investors, borrowers, NGOs and governments.