Microfinance is a socio-financial innovation which has increased financial inclusion in majority countries for the past three decades. However, changing technology and demographics mean that the future of microfinance depends on innovation by Microfinance Institutions (MFI's) in product design, application processes and financial operation. This paper applies the results from interviews with stakeholders in Pakistan, India and Bangladesh to understand how microfinance regulation directly impacts on MFI innovation and thus on the sustainability of financial inclusion in majority countries. We propose that microfinance regulation can support long-term financial inclusion via microfinance innovation through allowing MFI's to access: equity partnerships; diversified capital sources; and leverage opportunities derived from the mobile banking revolution for loan repayments. These findings have direct relevance for policy makers, and contribute to the literature regarding the future of financial inclusion.