kiva zip usa: technology and microfinance guest lecture at pace university, ny
DESCRIPTION
Was invited to give a guest lecture at microfinance post-graduate class at Pace University, New York. Structured as a part lecture, part focus-group with the students, the class surfaced interesting discussions into the promising future of leveraging innovations elsewhere in the sharing economy and low-cost digital connectivity/payment mechanisms to further unlock idle capital to tackle small business financial exclusion in the USA.TRANSCRIPT
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
=
9
The Need
The Solution:unlocking wealth from ‘idle capacity’?
share
Space
share
Stuff
share
Skills
share
Space
share
Stuff
share
Skills
share
Spare $
13
Smallbiz Lending without Charging, without Credit Scores and without Collections.
14
Re-thinking Smallbiz Lending with simple, pervasive connective technologies
15
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
16
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
26
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: [email protected]
t: @SulinLau
DRINK (for a good cause)9.30pm April 13. Pera Soho