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NSLC 2010 Premal Shah President Kiva www.kiva.org   Parth Shah National Director Kiva High School www.kivahighschool.org "Revolutionising how donors and lenders in the US are  connecting with small entrepreneurs in developing countries”
What is Microfinance? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Microfinance Institutions ,[object Object],[object Object],[object Object],There are thousands of microfinance institutions around the world, and they all vary a little depending on the region they are in and people they are targeting to help What ties them all together, however, is a desire to help the poor by providing them with financial services
Traditional Microfinance Lending Process
Why loans rather than charity? ,[object Object],[object Object],[object Object],[object Object],[object Object]
"Don't ask what the world needs, do what makes you come alive; because what the world needs most are people who have come alive."  -- Howard Thurman   Guiding personal principle
Sophomore slump 20 “ Alive-ness” Key milestones and how ‘alive’ I felt SEWA Research Project Management Consultant in New York Joined small start up: PayPal Personal discovery of Microfinance Leave for Kiva.org PayPal acquired by eBay Big company – “do I matter?” angst “ I got this idea” OMG it’s working! 33 Age
Kiva 101 Internet Lender Online marketplace Local Partner (MFI) Entrepreneur Money Information
550K  people lent  $120M  to  200K  entrepreneurs in  4  years ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],5 yr goal = $1 Billion
Kiva utilizes 4 “Web 2.0” principles ,[object Object],[object Object],[object Object],[object Object]
Create an “Addictive” User Experience ,[object Object]
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
How Kiva tries to make it “Fun”   Badging, Teams, fast changing UGC, stats... Loans are fully funded in hours Transactions happen every 18 seconds… Real time un-edited updates… Randomized  “1 minute of fame “ + Lending Teams…
For some, Kiva is becoming very addictive!
Be ‘Radically Transparent’ Transparency     Authenticity    Trust
Kiva and Radical Transparency Paying for Kiva’s overhead is an explicit choice
Kiva and Radical Transparency Data inaccuracy and defaults are made explicit
“ Crowdsource” against constraints Big constraint? + No resources? =  Crowdsource
Kiva and “Crowdsourcing” Kiva Fellows Program How do we train MFIs, gather progress updates and verify data accuracy hyper-fast?
Kiva and “Crowdsourcing” Kiva Translator Program How do we immediately translate entrepreneur profiles from native language to English?
Build in “Increasing Returns on Data” Leading public platform + Data integrity     “ Increasing Returns on Data”
Public reputation system for MFI Risk and Social Performance Social Rating Risk Rating Kiva Social Rating Kiva Risk Rating
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…
Kiva High School ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Kiva High School ,[object Object],[object Object],[object Object],[object Object],[object Object]
Kiva Fellow Video http://fellowsblog.kiva.org/2010/03/11/12745/
Thank you and questions

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Nslc 2010 kiva hs

  • 1. NSLC 2010 Premal Shah President Kiva www.kiva.org Parth Shah National Director Kiva High School www.kivahighschool.org "Revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries”
  • 2.
  • 3.
  • 5.
  • 6. "Don't ask what the world needs, do what makes you come alive; because what the world needs most are people who have come alive." -- Howard Thurman Guiding personal principle
  • 7. Sophomore slump 20 “ Alive-ness” Key milestones and how ‘alive’ I felt SEWA Research Project Management Consultant in New York Joined small start up: PayPal Personal discovery of Microfinance Leave for Kiva.org PayPal acquired by eBay Big company – “do I matter?” angst “ I got this idea” OMG it’s working! 33 Age
  • 8. Kiva 101 Internet Lender Online marketplace Local Partner (MFI) Entrepreneur Money Information
  • 9.
  • 10.
  • 11.
  • 12. 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
  • 13. How Kiva tries to make it “Fun” Badging, Teams, fast changing UGC, stats... Loans are fully funded in hours Transactions happen every 18 seconds… Real time un-edited updates… Randomized “1 minute of fame “ + Lending Teams…
  • 14. For some, Kiva is becoming very addictive!
  • 15. Be ‘Radically Transparent’ Transparency  Authenticity  Trust
  • 16. Kiva and Radical Transparency Paying for Kiva’s overhead is an explicit choice
  • 17. Kiva and Radical Transparency Data inaccuracy and defaults are made explicit
  • 18. “ Crowdsource” against constraints Big constraint? + No resources? = Crowdsource
  • 19. Kiva and “Crowdsourcing” Kiva Fellows Program How do we train MFIs, gather progress updates and verify data accuracy hyper-fast?
  • 20. Kiva and “Crowdsourcing” Kiva Translator Program How do we immediately translate entrepreneur profiles from native language to English?
  • 21. Build in “Increasing Returns on Data” Leading public platform + Data integrity  “ Increasing Returns on Data”
  • 22. Public reputation system for MFI Risk and Social Performance Social Rating Risk Rating Kiva Social Rating Kiva Risk Rating
  • 23. 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…
  • 24.
  • 25.
  • 26. Kiva Fellow Video http://fellowsblog.kiva.org/2010/03/11/12745/
  • 27. Thank you and questions

Editor's Notes

  1. - Questions?
  2. - Questions?
  3. -- Startup MFI in Ecuador , stanford classmates -- Established MFIs like ProMujer -- Banks, NGOs and NB Financial Institutions -- MFIs part of networks like Accion and Opportunitity and even Save the Children
  4. -- Startup MFI in Ecuador , stanford classmates -- Established MFIs like ProMujer -- Banks, NGOs and NB Financial Institutions -- MFIs part of networks like Accion and Opportunitity and even Save the Children
  5. -- Startup MFI in Ecuador , stanford classmates -- Established MFIs like ProMujer -- Banks, NGOs and NB Financial Institutions -- MFIs part of networks like Accion and Opportunitity and even Save the Children