Credit Suisse sees opportunities in micro-finance

GENEVA (Reuters) - Wealthy investors, eagerly looking for alternative ways to earn returns on their money, look likely to put increasing amounts of capital into micro-finance, a top Credit Suisse manager said at the Reuters Wealth Management Summit on Tuesday.

Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) had almost $100 million in micro-finance funds, which were expected to reach $200 million by next year, said Arthur Vayloyan, head of private banking and investment services and products at the Swiss bank.

Micro-finance involves offering small amounts of credit to entrepreneurs, often in emerging economies, who do not normally have access to regular bank loans.

Even though the funding is not always secured to any assets, the returns can be as high as those offered by more conventional financial products, say analysts.

Speaking at the summit held at Reuters' offices in Geneva, Vayloyan said he saw Credit Suisse handling up to $1 billion to $2 billion in micro-finance projects within a few years.

With wealth managers competing for a growing share of business as emerging economies boom, especially in Asia, and families growing more prosperous in Europe and the Americas, many affluent clients are seeking profitable alternatives to conventional investments.