Nowhere in the Americas is microfinance as far advanced as in Bolivia. Using the examples of BancoSol, Caja los Andes and FIE -Bolivia's three largest microfinance institutions- this article describes challenges microfinance has faced from economic recession and borrower revolts; how it stacks up against the rest of the banking sector; and how the industry evolved under those pressures. Finally, the article speculates where Bolivian microfinance, and the microfinance industry in general, may be headed.