Microfinance in Latin America, especially in Mexico, was studied to see if it helps reduce poverty. Different types of microfinance institutions were compared, with banks and non-bank financial intermediaries found to be more efficient. Savings-focused programs were better at reducing poverty than credit-focused ones. Being part of a savings and credit society improved household well-being and reduced vulnerability to poverty. The gender and experience of loan officers were important factors in determining loan repayment rates. Loan officers who worked longer had higher default rates, and peer monitoring didn't have a big impact on loan defaults.