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Yja presentation

  1. 1. YJA Conference July 2008 Parth Shah Intern Kiva.org“Direct and straightforward lending to individuals in developing countries is here... You don't have to be a Bill Gates to drastically change people's lives anymore.”
  2. 2. What is the Field of Microfinance? • Most of global poor run small businesses • In order for these small businesses to succeed owners need a small amount (micro-) of capital (-finance) • Microfinance loans have a 95%+ repayment rate and is a proven method of enabling the poor to lift themselves out of poverty I know how to what I do: I just need capital to lift myself out of poverty
  3. 3. A Look At Microfinance Estimated Number of Borrowers In Need Estimated Number of Borrowers Reached In Millions
  4. 4. A Look At Microfinance 80% of Global Demand Not Met Estimated Number of Borrowers In Need Estimated Number of Borrowers Reached In Millions
  5. 5. Kiva Story
  6. 6. Kiva Story How?
  7. 7. What is Kiva? • Kiva’s Mission: To alleviate poverty by allowing people to LEND to entrepreneurs in the developing world • Kiva executes through an online platform which allows everyday users to make LOANS to entrepreneurs in the developing world
  8. 8. Kiva Model EntrepreneurLender I can loan to entrepreneurs in the developing world! Microfinance Institution (MFI) Online Platform Low interest loans Transparency
  9. 9. map our filed partners Text
  10. 10. map our filed partners Kiva’s Field Partners (MFI’s) Text
  11. 11. 1 80+ MFIs from 40+ countries Map of our Field Partners Mexico Guatemala Honduras Nicaragua Haiti Dominican Republic Samoa Ecuador Peru Bolivia Paraguay Senegal Sierra Leone Cote d’Ivoire Ghana Togo Nigeria Cameroon DRC Mozambique Tanzania Kenya Uganda South Sudan Indonesia Vietnam Cambodia NepalPakistan Afghanistan Tajikistan Lebanon Gaza Iraq Azerbaijan Ukraine MoldovaBosnia Bulgaria map our filed partners Kiva’s Field Partners (MFI’s) Text
  12. 12. Kiva Tries to Make the Experience Addictive “Addictive” = Easy + Fun
  13. 13. Kiva Makes it Easy “I can see the person I’m lending to…” Low cost to entry Quick and easy checkout Business relationship based on mutual dignity, not pity
  14. 14. Kiva Makes it Fun Loans are fully funded in hours (MFI staff love this)… Transactions happen every 37 seconds… Randomized “1 minute of fame “ for Lenders… ‘Popular’ entrepreneurs rapidly rise to the top… Real time un- edited progress updates from around the world…
  15. 15. My Profile “My Page” encourages self expression, evangelism and loyalty… “My Portfolio” concept encourages further lending, risk diversification and inter-lender competition… Results: +270,000 lenders from +70 countries in 2.5 years…
  16. 16. Kiva’s Transparency Results: 3% delinquency rate. 3% refund rate. <1% default rate. TBD inaccuracy rate
  17. 17. Kiva Inaction http://www.kiva.org/
  18. 18. Kiva’s Advantages (Lender’s Perspective) • Transparent- (“THIS IS A REAL PERSON”) • It’s A Loan- (“This is not a donation and I eventually get my money back”) • Affordable- (“I only need $25 to change one’s life”)
  19. 19. Kiva by the Numbers Time since launch: 30 months Loans: $32 million, growing $1 million every 10 days Lenders: 270K people from +70 countries Borrowers: 40K entrepreneurs from +40 countries MFI Partners: 100 MFIs, growing at 3 a month Traffic: +100K visitors / week Activity: Loan made every 37 seconds Risk: 97% active loans on time / 1% default rate Org Size: 30 employees / +400 volunteers Leverage: Platform raises $8 for every $1 in expenses. Goal: $1 Billion from 10M lenders in 5 years.
  20. 20. Kiva in the Press
  21. 21. Kiva in the Press - - - - “Making microfinance easier...Kiva’s website is easy to use, even for local Cambodian staff who haven’t used computers that long” "Revolutionizing how donors and lenders in the US are connecting with small entrepreneurs in developing countries” "Smaller investors can also make loans of as little as $25 to specific individual entrepreneurs through Kiva." "If you've got 25 bucks, a PC and a PayPal account, you've now got the wherewithal to be an international financier."
  22. 22. Supporters early RESULTS: STRONG BASE 2006
  23. 23. Supporters Early Results: Strong base of early supporters 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 Early FunderEarly FunderFeatured Organization Free computers and early funder early RESULTS: STRONG BASE 2006
  24. 24. How You Can Help • Make a $25 loan • Give a $25 gift certificate • Be a Kiva Fellow (if 21 or older) • Volunteer as a Translator or Editor • Spread the Word (email footer, add Kiva to your blog, join Facebook cause) • Start a Lending Team (launching in august)
  25. 25. How Much of an Impact You Can Make How you can help: A direct donation to Kiva.org makes a big impact Leverage Ratio X Livelihood Impact Multiplier Recycled Funds Effect X = Your donation’s total impact 10 to 1 For every dollar spent on operating Kiva, over $10 has been raised from our internet user base 5 to 1 For every loan made, 5 - 10 additional lives are improved. 1.8 to 1 For every repaid loan, early data shows an +80% re-loan rate. How much you can help: a direct donation
  26. 26. Activity • Goal - to find the entrepreneur that will repay the quickest when given a loan of $100. ( In other words find the entrepreneur that your group feels you think has the best chances of being successful ) • Get a packet with 10 entrepreneurs - each person gets one entrepreneur page • Each member should take a few minutes to read over their entrepreneur and then present to their group details about their specific entrepreneur • As a group, through discussion, please select one entrepreneur to fund your $100 too. Some factors that you should consider include: location of the entrepreneur, description of entrepreneur, primary activity, business type, loan use, loan amount, the rating of the MFI that is administering the loan, etc. • Each group will pick one representative to represent the group’s decision and EXPLAIN WHY they choose that entrepreneur along with THREE FACTORS that played an important role in the group’s decision
  27. 27. Activity Results • Doris Adamtey - 9 months • Thi Dung Man - 6 months • Aap Akib - 12 months • Najwa Shaya - 6 months • Dr Hakeem Bakunda - 12 months • Nariman Karimov - 14 months • Betty Ndagire - 6 months • Vidal Amador - 4 months • Sadeqa Bismullah - 8 months • Genadiy Kovalenko - 8 months
  28. 28. Video http://www.pbs.org/frontlineworld/stories/uganda601/ video_index.html