lending circles
TRANSCRIPT
RE:BUILD – LENDING CIRCLES
AGENDA
• Mission Asset Fund• The Shadows• Our Solution• Impact• Roles and Responsibilities• Leveraging Technology• Process to Become a Partner• Next Steps, Questions, Closing
MISSION ASSET FUND
We are a nonprofit organization on a mission to create a fair financial marketplace for hardworking families.
RESPECT BUILDMEET
THE SHADOWSSTUCK STRAPPEDINVISIBLE
26 million people are credit invisible 17 million adults are unbanked
Wages are flat and cost of living is up
19 million do not have enough credit history to generate a score
Average interest rates at payday lenders rage from 391% to 521%
9.5% income spent on financialservices
OUR SOLUTIONTRANSFORM SCALERECOGNIZE
Participants are financially savvy, innovative
Informal financial strategies are bona fide activities
Create programs to transform financial pain points
Build savings and credit opportunities
Use technology to increase capacity and impact
Build the nationwide network of Lending Circle providers
RECOGNIZE
susu
mabati
pandero
tanda kameti
kutuIt’s a global
practice
People come together
To lend and borrow
money to each other
LENDING CIRCLES
READY TO APPLY FOR DEFERRED ACTION BUT DON’T HAVE $465?
WANT TO MOVE INTO A NEW APARTMENT BUT CAN’T AFFORD THE SECURITY DEPOSIT?
READY TO APPLY FOR CITIZENSHIP BUT DON’T HAVE $680?
SOCIAL LOAN PROGRAMS
FINANCIAL MANAGEMENT TRAINING• Savings & Investments• Mortgages• Payment Types & Credit
Cards• Credit Scores & Reports• Insurance & Taxes• Financing Higher Education• Identity Protection• Overdraft• Retirement 101• Payday loans• Auto loans• Prepaid cards• Mobile Payments
13 INTERACTIVE MODULES:
TRANSFORM
social loans
financial
education
increased
financial
capability
INDIVIDUAL IMPACT
As of 5/1/15
INDIVIDUAL IMPACT
168Average score increase
$1,051
Less high-cost debt
100%Banked and building credit
$4.3 million
Zero-interest loans
99.42% repayment
rate
$1.1 millionSaved in fees and interest
$3.3 million
Less high-cost debt
NATIONAL IMPACT
As of 5/1/15
NETWORK APPROACH TO SCALE
LEVERAGING TECHNOLOGY
LENDING CIRCLES COMMUNITIES
Capacity(to provide &
support)
Cohesion
(mission and program
alignment)
Commitment
(> 2 year)
Community (needs / target populations)
WHAT WE LOOK FOR IN A PARTNERSHIP
Up to 5 new
partners
10 State
s
BETTER NORTHWEST INITIATIVE $250,000
Loan Volume
How do we build a better community in the BA through this initiative
THE NEXT DOOR’S STORY
The Next Door, Inc.’s 89 Lending Circle participants have generated $61,200 in social loans. With a 100% repayment rate, their clients have been able to use the Lending Circles program to purchase homes and take businesses to the next level.
Q&A
OUR FUNDERS
Annie E. Casey Foundation, Ashoka, Bank of America, Bank of the West, Capital One, Experian, Friedman Family Foundation, Goldhirsh Foundation, Marcled Foundation, SF Foundation, SF Mayor’s Office of Housing, SF OEWD, Silicon Valley Community Foundation, Thompson Family Foundation,
Walter and Elise Haas Fund, Wells Fargo
Innovators
Visionaries
Supporters
STAY IN TOUCH
MOHAN KANUNGO, Director of Programs &
Engagement
Email: [email protected]
Twitter: @MAFpajarito
Office: 3269 Mission St. San Francisco, CA 94110