The diffusion of Gramen Bank in Bangladesh

This article was very interesting review of micro financing at its best! The Article goes into talking about this so called "Grameen Bank" and how it is so much different than other banks within the world. This Grameen bank (rural bank), extends credit to third world entrepreneurs who would other wise not be able to obtain a loan. The bank amazingly provides collateral-free loans, but also recovers 98% of that money, which is then redistributed to other third world entrepreneurs. Part of the research in the article addressed how the innovative features of the bank were to be distributed towards the poor entrepreneurs. Well it was determined that mass media may be a good idea for 1st world donors, but since illiteracy rates are so high in third world countries word of mouth practices would have to be used in order to communicate features that the bank offers. The banks employees almost entirely came from interpersonal networks that were developed by the banks employees. Thus, many channels and social levels of communication were formed, which demonstrated the importance of interpersonal messages within this third world country. In turn, the Grameen bank has shown that collateral-free loans can help curb poverty in Bangladesh and other countries. Through, developing innovative principles different from traditional banks, to developing highly trusted, multi-level interpersonal networks in which the bowers consist of. Look for more articles on how communication plays a role in the diffusion of micro financing.