Technology, Microfinance and

Inclusion

Center for Social EntrepreneurshipPace University, April 3 2013

“We are all familiar with the concept of a Church with no walls...

...Kiva Zip is a new kind of wonder - a lending organization with no physical

bank, no profit, and no interest. It exists purely.....on faith.”

Ted Jefferson, Bronx Shepherds Restoration Corporation introducing Kiva Zip to fellow leaders of faith-based organizations

TECHNOLOGY HUMANITY

TECHNOLOGY HUMANITYDigital Payments

Social ConnectivityCrowdsourcing

TECHNOLOGY HUMANITYDigital Payments

Social ConnectivityCharacterGenerosityHuman tiesSelf-Service

TECHNOLOGY HUMANITYDigital Payments

Social ConnectivityCharacterGenerosityHuman tiesSelf-Service

Zero cost to serveZero InterestCrowd-funded Loans

to small business borrowers more “trustworthy”

than their credit score suggests

=

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The Need

The Solution:unlocking wealth from ‘idle capacity’?

share

Space

share

Stuff

share

Skills

share

Space

share

Stuff

share

Skills

share

Spare $

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Smallbiz Lending without Charging, without Credit Scores and without Collections.

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Re-thinking Smallbiz Lending with simple, pervasive connective technologies

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No branches or staff, zero marginal cost

0% interest, no profit, no fees

No credit scoring

Character & Competence

No collections agency *Trust* via connectedness

What IF ?

Target “risky”/ low income / unsexy /new startups

Get crowd to fund startups other lenders cannot

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How Kiva Zip works in practice:

Victor’s Cafeto CoffeeshopKiva Zip Story

Victor, Cafeto and a 0%, $5,000 loan

Victor’s ‘trustee’, MEDA

MEDA ‘endorsed’ Victor

Victor’s ‘crowd’ of lenders

Lenders expressing support, and even becoming customers

Victor updating his lenders

Victor is now 100% repaid…

…And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!

Victor then endorsed his friend Rocio for a loan

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Examples of Organizations partnering Kiva Zip as trustees

SEEDSPOTIncubator, AZ

GREENHORNSnonprofit, small farm-innovation

SYRACUSE UNIVERSITY Institute for Veterans & Military Families

TEAM ETSY LITTLE ROCKCommunity Center for African American Business

St Louis, MO

Oakland City Church (Pastor Josh McPaul)

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Ideal trust intermediaries

Character

&

Competence

Future of Financial Inclusion?

“Anyone”

38%

5%7%7%8%

9%

27%

FoodShopsAccess, CraftContractors, Cleaners, MechanicsFarmstech/appsother

Don’t need a special idea, or great marketing or videos to get funded

So, now you.

LEND $25: Zip.kiva.org/loans

Help spread the word?m: sulin.lau@fellows.kiva.org

t: @SulinLau

DRINK (for a good cause)9.30pm April 13. Pera Soho