Kiva fulbright (07 mar 2009)Presentation Transcript
The Kiva Story: Connecting through Lending Kiva Translators Program Kiva Fellows Program JD Bergeron Director, Kiva Fellows Program www.kiva.org/volunteer/ "Revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries”
Kiva Homepage: www.kiva.org
A simple story: this is a real person!
Kiva Vision, Mission and Core Beliefs
Everyone connected. Everyone empowered.
Connecting people through lending for the sake of alleviating poverty.
Power of Microfinance
Spread of Technology
Lending is Connecting
Kiva 101: How does it work? Money Information Local Partner (MFI) Entrepreneur Internet Lender Online marketplace
How Kiva tries to make it “Fun” Rich user generated content, changing fast... Loans are fully funded in hours (MFI staff love this)… Transactions happen every 37 seconds… Real time un-edited progress updates from around the world… ‘ Popular’ entrepreneurs rapidly rise to the top… Randomized “1 minute of fame “ for Lenders…
How Kiva tries to make it “Easy” Designed for everyday people, not affluent experts “ I can see the person I’m lending to…” Low cost to entry Business relationship based on mutual dignity, not pity Quick and easy checkout
Where does Kiva work? Sierra Leone Ukraine S.Sudan Peru Uganda D.R. Mexico Bosnia Honduras Nicaragua Benin Kenya Azerbaijan Paraguay Tajikistan Cameroon Cambodia Indonesia Vietnam Ghana Togo Samoa Tanzania Philippines Mozambique Rwanda Bolivia Senegal Lebanon Palestine Afghanistan Guatemala El Salvador Mali
Getting Press "Revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries”
+425,000 social investors have lent + $59 million in first 3 years.
Other Key Stats
Growth: $1M loans every 10 days.
Risk: 3.5% delinquency rate / < 0.5% default rate
MFI Portfolio: 97 MFIs in 42 countries. Growing 3 a month.
Traffic: 100,000 site visitors a week.
Organization: 30 employees / +400 volunteers
Leverage: Platform raises $10 in loans for every $1 donated.
5 yr goal = $1 Billion
Kiva by the Numbers
Time since launch: 41 months (Oct-2005)
Loans: $58 million, growing $1 million every 12 days
Lenders: 425K people from 70+ countries
# of loans funded through Kiva: 67,869
Borrowers: 40K entrepreneurs from 41 countries
MFI Partners: 88 MFIs, growing at three per month
Traffic: 100K+ visitors per week
Activity: Loan made every 9 seconds
Risk: 98.74% active loans on time / 1.26% default rate
Average size of loan for funding: $452.53
Average total amount loaned per lender : $136.53
Average number of loans per Kiva Lender: 3.66
Org Size: ~30 employees / 400+ volunteers
Leverage: Platform raises $8 for every $1 in expenses
Goal: $1 Billion from 10M lenders in 5 years.
What Are the Requirements?
Kiva seeks volunteers with:
High-level proficiency in a foreign language
Excellent writing skills in English
Ability to commit to two hours per week for three months as a volunteer
Check email frequently and comfortable using new technology
Previous translation experience is helpful, but not required.
Kiva.org is the first person-to-person micro-lending website, lending directly to entrepreneurs in developing countries.
Volunteering from their own homes, Kiva volunteers translate entrepreneurs' profiles into English, which are then posted for funding at Kiva.org.
The Kiva Translation Program offers individuals the opportunity to:
Make a direct contribution to Kiva
Improve language skills
Form a network of volunteers
Build your resume
What Is the Kiva Translation Program? What Languages Are Needed?
Language needs include:
Future needs: Arabic, Armenian, Dari, Pashto and Tagalog
New funding source for risky/costly MFIs / clients
Kiva’s lenders are more risk tolerant and value impact
Enables down-market reach
New margins increase ability to provide health / education services
Develop a new class of social investors / globally concerned citizens
Promise of Kiva for Microfinance
How a Kiva Fellow Adds Value
1) The Power of Microfinance
Kiva Fellows engage in microfinance as a tool for poverty alleviation on a very personal level, an experience they will carry with them their entire lives.
2) Partnership Relationships
Kiva Fellows strengthen the connections between all stakeholders
Just by being there, Kiva Fellows get the real picture and promote better understanding
4) The Spread of Technology
Kiva Fellows train MFI staff to work with Kiva’s policies and backend technology
5) Lending is Connecting
Kiva Fellows generate high quality content, as evidenced by comments on Journal Updates
Kiva Fellows learn and document the host MFI’s processes – Kiva can’t be everywhere at all times
7) Industry Inclusion
Kiva Fellows bring information—best practices—about how microfinance really works in the field back to Kiva
Kiva utilizes five principles of “Web 2.0”
Create an “ addictive ” user experience
Be “ radically transparent ”
“ Crowdsource ” against constraints
Build in “ increasing returns on data ”
Reach the “ long tail ”
“ Addictive” = Easy + Fun
Improving the secret sauce Keeping Lenders Engaged
Be ‘Radically Transparent’ Transparency Authenticity Trust
Kiva and “Crowdsourcing” We have little money, but great partners! Free payment processing and employee support 120 Million free banner impressions Free Google Adwords – 25% of traffic Free Yahoo Search Marketing and employee support Free promotion (Community Impact Award) Funding for Field Research and Development Free phones for cell based data upload pilot Free promotion of Kiva widget to bloggers Free computers and early funder
The long tail of MFIs Tier I Tier 2 Tier 3 Tier 4 Investment Size The Internet is a promising way to reduce costs and distribute risk in Tier 2 - Tier 4 investing Big investment opportunity?
Kiva can uniquely reach the microfinance ‘long tail’ Tier I (e.g. Grameen Bank) ----- Tier IV (e.g. church congregation) Current distribution of funds in microfinance The Internet is a promising way to reduce costs and distribute risk in investing in smaller (Tier II - Tier IV) Microfinance Institutions. Could Kiva help discover and scale the next Grameen Bank?
Kiva’s platform can aggregate and deliver risk capital unlike any commercial source
Kiva lenders value social return / tolerate risk more than institutions
$25 investments size ensures risk distribution across thousands of investors
Less established MFIs can build a reputation slowly over time (like on eBay)
Results: +270,000 lenders from +70 countries in 2.5 years… How Kiva tries to make it “Fun” My Page, My Portfolio… “ My Page” encourages self expression, evangelism and loyalty… “ My Portfolio” concept encourages further lending, risk diversification and inter-lender competition…
Meet some field partners
Meet some field partners
Meet some borrowers
Meet some borrowers
Meet some borrowers
How can you get involved? Lending Teams 101
How does Lending Teams work? Members of Lending Teams continue lending as individuals, but they have the option at check-out to count each loan they make towards the overall impact of one of their teams:
How do you participate? Starting or joining a team is easy. Go to the new Community tab to view teams and then request to join one or more. Start your own team if you don’t find one that you like and start recruiting friends to join
Why participate? If you affiliate with any type of group – people who went to Stanford, other Kiva Engineers, people who live in London – Lending Teams is an easy way to get these friends turned on to Kiva, measure collective impact and communicate with each other along the way