Kiva Applying ‘Web 2.0’ To Philanthropy


Published on

+400,000 social investors have lent +$55 million in 39 months on

Published in: Technology, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Kiva Applying ‘Web 2.0’ To Philanthropy

    1. 1. Applying ‘Web 2.0’ principles to philanthropy The San Francisco Foundation Annual Board of Trustees Meeting Premal Shah President Kiva "Revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries”
    2. 2. Kiva 101 Internet Lender Online marketplace Local Partner (MFI) Entrepreneur Money Information
    3. 3. +400,000 social investors have lent + $55 million in 39 months <ul><li>Other Key Stats </li></ul><ul><li>Growth: $1M loans every 10 days. </li></ul><ul><li>Risk: 3.5% delinquency rate / < 0.5% default rate </li></ul><ul><li>MFI Portfolio: 111 MFIs in 45 countries. Growing 3 a month. </li></ul><ul><li>Traffic: 800,000 site visitors last month </li></ul><ul><li>Organization: 35 employees / +400 volunteers </li></ul><ul><li>Leverage: Platform raises $8 in loans for every $1 donated. </li></ul>5 yr goal = $1 Billion
    4. 4. Kiva utilizes 4 “Web 2.0” principles <ul><li>Create an “ Addictive ” User Experience </li></ul><ul><li>Be “ Radically Transparent ” </li></ul><ul><li>“ Crowdsource ” against constraints </li></ul><ul><li>Build in “ increasing returns on data ” </li></ul>
    5. 5. Create an “Addictive” User Experience <ul><li>“ Addictive” = Easy + Fun </li></ul>
    6. 6. How Kiva tries to make it “Easy” Transparent and simple human story / impact Affordable Quick
    7. 7. 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…
    8. 8. 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…
    9. 9. For some, Kiva is becoming very addictive! – unofficial Kiva community forum (built by our users) Several results when searching for the word: “ Addicted ” 
    10. 10. Be ‘Radically Transparent’ Transparency  Authenticity  Trust
    11. 11. Kiva and Radical Transparency Paying for Kiva’s overhead is an explicit choice
    12. 12. Kiva and Radical Transparency Data inaccuracy and defaults are made explicit
    13. 13. “ Crowdsource” against constraints Big constraint? + No resources? = Crowdsource
    14. 14. Kiva and “Crowdsourcing” Kiva Fellows Program How do we train MFIs, gather progress updates and verify data accuracy hyper-fast?
    15. 15. Kiva and “Crowdsourcing” Kiva Translator Program How do we immediately translate entrepreneur profiles from native language to English?
    16. 16. 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
    17. 17. Build in “Increasing Returns on Data” Leading public platform + Data integrity  “ Increasing Returns on Data”
    18. 18. “ The Long Tail’ “ The Long Tail”
    19. 19. Result: 30,245,763 loans found Kiva and “Increasing Returns on Data” World’s largest DB of microfinance investments Long Term : Entrepreneurs could use Kiva as a public credit bureau… Short Term : MFIs could use Kiva to build credit worthiness to other funders…
    20. 20. Thank you and questions
    21. 21. APPENDIX
    22. 22. Kiva’s Risk Model helps manage risk on Kiva’s platform and creates an incentive for MFIs to improve transparency and performance. Inputs <ul><li>1) Self-reported MFI Data </li></ul><ul><li>Organizational age </li></ul><ul><li>Gross Loan Portfolio (GLP) </li></ul><ul><li>Overall Portfolio At Risk (PAR) </li></ul><ul><li>Organizational Self Sufficiency (OSS) </li></ul><ul><li>2) 3 rd Party MFI Data </li></ul><ul><li>Financial Audit Results </li></ul><ul><li>Credit Rating Score </li></ul><ul><li>Kiva Audit Results </li></ul><ul><li>Outside funder Quality </li></ul><ul><li>Network Affiliation Quality </li></ul><ul><li>3) MFI Performance on Kiva </li></ul><ul><li>Total Outstanding Kiva Loans </li></ul><ul><li>PAR on Kiva Loans </li></ul><ul><li>Kiva Fellows’ Journaling Coverage </li></ul>Outputs 1. MFI Reputation on Kiva’s site 2. Monthly Fundraising Limit 3. Kiva Audit Prioritization Kiva Risk Model