Mobile Apps for Microfinance

By Neil DiMuccio

What is microfinance? = Using innovative finance and technical

arrangements to include people in the formal financial sector.

Many people living in "3rd World" countries don't have access to savings / loans:

-Rural / distance -Lack of wealth / collateral -Distrust of financial sector due to currency

problems, hyperinflation, coups, etc.

What is microfinance? Offering loans to people who may be able to use

the funding to massively raise their profits on small business. Ex: Ag

What is microfinance NOT?

-Not the solution to all development problems.

(doesn't address: health, education, politics, infrastructure, macroeconomy, etc.)

Redefining "Poor"... Less than adequate, meager, small in worth,

causing pity, inferior in quality or value, humble, unpretentious, mean, petty, lean, emaciated, barren, unproductive, indifferent, unfavorable, broke, destitute, famished, indigent, needy, threadbare, deprived, disadvantaged, dispossessed, underprivileged, bankrupt, ruined, depressed, distressed, reduced, desolate, infertile.

But what if we have it wrong?

http://www.youtube.com/watch?v=Cqj0sgrNL10 (0-2:00 10:15-12:00)

Microfinance: where is it? MFIs - banks and non-profits setup specifically

to loan to financially excluded people.

Traditionally, mostly via big donations (gov't or from private foundations).

Until recently, most of the action in Microfinance happened in developing countries, with "big money".

First major web platform to bring Microfinance to the public via "P2P".

Using Kiva, you can loan to a foreign MFI, who then loans your money to a local borrower, makes interest on your loan, and returns your principal (but no interest).

Essentially, a "charity" loan.

Similar P2P model as Kiva, with borrowers creating profiles so lenders can fund them.

BUT - Cuts out the MFI intermediary, so the money goes directly from borrower to lender, lowering costs and interest rates!

Best of all, the lender gets a small interest (profit) on his/her loan, and the borrower gets an extremely-low rate!

Where my apps at? Despite the surge in microfinance industry...

Searching the App Store (or Android's):

"games" returns 593 million results.

"microfinance" "microcredit" or "microlending" returns 0 results.

M-Pesa Mobile payments transfer system, operated by

Kenya's only telecom company. Went from 0 users to tens of millions within a few years.

"Leapfrogs" US mobile banking.

Up Next...

My App for Project 3 Goal: A working prototype that Zidisha could

use to engage and extend userbase. Working on portfolio functionality, as well as a fun "shake-to-learn" feature. Upon shaking, the iPad will load randomized pages to share stories and resources.

This lets the user explore and learn about Zidisha in a fun manner, as well as keep track of their loans.

Questions?