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Transcript of Yja presentation
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.”
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
A Look At Microfinance
Estimated Number of Borrowers In NeedEstimated Number of Borrowers Reached
In Millions
A Look At Microfinance
80% of Global
Demand Not Met
Estimated Number of Borrowers In NeedEstimated Number of Borrowers Reached
In Millions
Kiva Story
Kiva Story
How?
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
Kiva Model
EntrepreneurLender
I can loan to
entrepreneurs in the
developing world!
Microfinance Institution
(MFI)Online Platform
Low interest loans
Transparency
map our filed partners
Text
map our filed partners
Kiva’s Field Partners (MFI’s)
Text
1
80+ MFIs from 40+ countries
Map of our Field Partners
Mexico
GuatemalaHonduras
Nicaragua
HaitiDominican
Republic
SamoaEcuador
Peru
BoliviaParaguay
Senegal
Sierra
Leone Cote
d’Ivoire
Ghana
Togo
Nigeria
Cameroon
DRC
Mozambique
Tanzania
KenyaUganda
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
Kiva Tries to Make the Experience Addictive
“Addictive” = Easy + Fun
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
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…
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…
Kiva’s Transparency
Results:
3%
delinquency
rate.
3% refund
rate.
<1% default
rate.
TBD
inaccuracy
rate
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”)
Kiva by the Numbers
Time since launch: 30 monthsLoans: $32 million, growing $1 million every 10 daysLenders: 270K people from +70 countriesBorrowers: 40K entrepreneurs from +40 countriesMFI Partners: 100 MFIs, growing at 3 a monthTraffic: +100K visitors / weekActivity: Loan made every 37 secondsRisk: 97% active loans on time / 1% default rateOrg Size: 30 employees / +400 volunteers Leverage: Platform raises $8 for every $1 in expenses.Goal: $1 Billion from 10M lenders in 5 years.
Kiva in the Press
Kiva in the Press
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“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."
Supporters
early RESULTS: STRONG BASE
2006
SupportersEarly 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
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)
How Much of an Impact You Can Make
How you can help:
A direct donation to Kiva.org makes a big impact
LeverageRatio X
LivelihoodImpact
Multiplier
RecycledFundsEffect
X =
Yourdonation’s
totalimpact
10 to 1
For every dollarspent on operatingKiva, over $10 hasbeen raised fromour internet userbase
5 to 1
For every loanmade, 5 - 10additional livesare improved.
1.8 to 1
For every repaidloan, early datashows an +80%re-loan rate.
How much you can help: a direct donation
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
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
Video
http://www.pbs.org/frontlineworld/stories/uganda601/
video_index.html