In this video, Richard Rosenberg, consultant to CGAP, talks about the value proposition of microfinance and how this relates to the price for financial services. He highlights the usage of loans for consumption purpose instead of income generation or investment, and also notes that the usage is much more varied. Elaborating his point, Richard says that in the long run microfinance is not a strong tool against poverty but it is an effective tool to cope with poverty and a value for money. He further compares microfinance with subsidy and recommends microfinance over subsidies.