, Columnist
Dream Small, Earn Big
Micro-lenders such as SKS earn profits that global banks have sought in vain. What's the catch?
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It's a pity nobody told Josef Ackermann he should be financing mobile phones; it's a crying shame nobody's persuading Stuart Gulliver to lend money for bicycles, sewing machines and solar lamps.
The former Deutsche Bank CEO spent the pre-crisis years dreaming of a 25 percent return on equity. The current HSBC boss started out with ambitions of 12 to 15 percent but has since tied his reputation to achieving a more modest 10 percent. And while Ackermann failed, and Gulliver is flailing, it turns out ROE of 25 percent is hiding in plain sight in micro-loans.