Lending Circles demonstrate the ingenuity and resilience of communities that are outside of mainstream banking. Lending Circles have long been used in different communities across the world as an alternative way to support savings or provide an emergency reserve to meet community needs. Here in the US, lending circles are beginning to receive more and more attention as a tool that works for a range of communities. Join us to learn how Lending Circles work and hear from organizations in the Pacific Northwest that have started Lending Circles. Mohan Kanungo, Mission Assets Fund Gabriel Muro, The Next Door Moderator: Lynne McConnell, Neighbor Impact

1. RE:BUILD – LENDING CIRCLES

2. AGENDA
• Mission Asset Fund
• The Shadows
• Our Solution
• Impact
• Roles and Responsibilities
• Leveraging Technology
• Process to Become a Partner
• Next Steps, Questions, Closing

3. MISSION ASSET FUND
We are a nonprofit organization on a mission to create a fair financial
marketplace for hardworking families.
RESPECT BUILDMEET

4. THE SHADOWS
STUCK 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 financial
services

5. OUR SOLUTION
TRANSFORM 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

6. RECOGNIZE
mabati
kutu
It’s a global
practice
People come
together
To lend and
borrow money to
each other

7. LENDING CIRCLES

8. 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

9. 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:

10. TRANSFORM
social
loans
financial
education
increased
financial
capability

11. INDIVIDUAL IMPACT
As of 5/1/15
INDIVIDUAL IMPACT
168
Average
score
increase
$1,051
Less high-
cost debt
100%
Banked and
building
credit

12. $4.3 million
Zero-interest
loans
99.42%
repayment rate
$1.1 million
Saved in fees
and interest
$3.3 million
Less high-cost
debt
NATIONAL IMPACT
As of 5/1/15

13. NETWORK APPROACH TO SCALE

14. LEVERAGING TECHNOLOGY

15. LENDING CIRCLES COMMUNITIES

16. Capacity
(to provide & support)
Cohesion
(mission and program
alignment)
Commitment
(> 2 year)
Community
(needs / target populations)
WHAT WE LOOK FOR IN A PARTNERSHIP

17. Up to 5 new
partners
10
States
BETTER NORTHWEST
INITIATIVE
$250,000
Loan Volume
How do we build a better community in
the BA through this initiative

18. 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.

19. Q&A

20. 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, SiliconValley
Community Foundation,Thompson Family Foundation,Walter and Elise Haas Fund,Wells Fargo
Innovators
Visionaries
Supporters

21. STAY IN TOUCH
MOHAN KANUNGO,
Director of Programs & Engagement
Email: mohan@missionassetfund.org
Twitter: @MAFpajarito
Office: 3269 Mission St.
San Francisco, CA 94110