Towards a Sustainable Urban Microfinance Framework: A Participatory Model from Bangkok’s Community Funds

Urban poverty remains a persistent challenge in many rapidly urbanizing cities, including Bangkok, despite various policy interventions.Community-based microfinance funds have emerged as a promising mechanism to empower the urban poor by providing small loans and savings opportunities to those unable to access formal banking.However, ensuring the long-term sustainability of these funds through effective management remains problematic, as many face loan delinquency, inconsistent operations, and inadequate monitoring.This study addresses that gap by examining how Bangkok's community funds can be managed more sustainably through participatory approaches.Using a mixedmethods design, the study surveyed 400 community fund members and conducted semi-structured interviews with 20 key informants, including Bangkok officials, microfinance scholars, community leaders, and NGO representatives.Descriptive statistics and content analysis were applied to the quantitative and qualitative data, respectively.The survey results indicated that 92.4% of members believed these funds reduce household financial burdens, and 67.1% had used loans for daily livelihood or microenterprise.Respondents rated fund operations positively (mean = 4.01) but identified monitoring and oversight as weaker areas (mean = 3.55).Interview findings underscored persistent challenges in fund management, follow-up, and program continuity despite the funds' crucial role in providing financial access to low-income urban residents.Based on these findings, the study proposes a participatory sustainability framework wherein community members and local authorities engage in joint planning, internal fund governance is strengthened, and municipal policy support is aligned with community needs.This participatory framework offers a novel contribution to microfinance theory by demonstrating how community engagement can enhance the sustainability of urban poverty alleviation initiatives.At the policy level, it provides practical guidance for local governments and stakeholders to strengthen the effectiveness and social impact of urban microfinance programs in Bangkok and similar metropolitan contexts.