Technology & Financial Inclusion: How Kiva Zip is reinventing financial inclusion for US small businesses

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Lecture delivered by Kiva Zip fellow Sulin Lau (@sulinlau) at PACE University Center For Social Entrepreneurship, NYC. 2013

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Technology & Financial Inclusion: How Kiva Zip is reinventing financial inclusion for US small businesses

  1. 1. Technology,Microfinance andInclusionCenter for Social EntrepreneurshipPace University, April 3 2013
  2. 2. “We are all familiar with the concept of aChurch with no walls......Kiva Zip is a new kind of wonder - alending organization with no physicalbank, no profit, and no interest. It existspurely.....on faith.”Ted Jefferson, Bronx Shepherds Restoration Corporation introducingKiva Zip to fellow leaders of faith-based organizations
  3. 3. TECHNOLOGY HUMANITY
  4. 4. TECHNOLOGY HUMANITYDigital PaymentsSocial ConnectivityCrowdsourcing
  5. 5. TECHNOLOGY HUMANITYDigital PaymentsSocial ConnectivityCharacterGenerosityHuman tiesSelf-Service
  6. 6. TECHNOLOGY HUMANITYDigital PaymentsSocial ConnectivityCharacterGenerosityHuman tiesSelf-Service
  7. 7. Zero cost to serveZero InterestCrowd-funded Loansto small businessborrowers more“trustworthy”than their credit scoresuggests=
  8. 8. 9The Need
  9. 9. TheSolution:unlocking wealthfrom ‘idle capacity’?
  10. 10. shareSpaceshareStuffshareSkills
  11. 11. shareSpaceshareStuffshareSkillsshareSpare $
  12. 12. 13Smallbiz Lendingwithout Charging,without Credit Scores andwithout Collections.
  13. 13. 14Re-thinkingSmallbiz Lendingwith simple, pervasiveconnective technologies
  14. 14. 15No branches or staff,zero marginal cost0% interest, noprofit, no feesNo creditscoringCharacter &CompetenceNo collections agency*Trust* viaconnectednessWhat IF ?Target “risky”/ lowincome / unsexy /newstartupsGet crowd to fundstartups otherlenders cannot
  15. 15. 16How Kiva Zip works in practice:Victor’s Cafeto CoffeeshopKiva Zip Story
  16. 16. Victor, Cafeto and a 0%, $5,000 loan
  17. 17. Victor’s ‘trustee’, MEDA
  18. 18. MEDA ‘endorsed’ Victor
  19. 19. Victor’s‘crowd’ oflenders
  20. 20. Lendersexpressingsupport,and evenbecomingcustomers
  21. 21. Victorupdatinghislenders
  22. 22. Victor is now 100% repaid…
  23. 23. …And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!
  24. 24. Victor then endorsed his friend Rocio for a loan
  25. 25. 26Examples of Organizationspartnering Kiva Zip as trusteesSEEDSPOTIncubator, AZGREENHORNSnonprofit, small farm-innovationSYRACUSE UNIVERSITYInstitute for Veterans & Military FamiliesTEAM ETSY LITTLE ROCKCommunity Center for African American BusinessSt Louis, MOOakland City Church(Pastor Josh McPaul)
  26. 26. 27Ideal trust intermediariesCharacter&Competence
  27. 27. Future of FinancialInclusion?“Anyone”
  28. 28. 38%5%7%7%8%9%27%FoodShopsAccess, CraftContractors, Cleaners, MechanicsFarmstech/appsotherDon’t need a special idea, or greatmarketing or videos to get funded
  29. 29. So, now you.
  30. 30. LEND $25:Zip.kiva.org/loansHelp spread the word?m: sulin.lau@fellows.kiva.orgt: @SulinLauDRINK (for a good cause)9.30pm April 13. Pera Soho

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