#TEDxMS 2013 : Individuals Changing Lives One Loan at a Time via KIVA
31
description
Delivered at the social enterprise-themed TEDx Merdeka Square 2013 in Kuala Lumpur. One way of facing the problems of global poverty without feeling powerless or guilted is to be part of Kiva's global coordinated experiments in spurring entrepreneurship via crowdlending. This talk argues that not only are each of us able to change a life permanently and directly by lending $25 of spare change to small businesses in low income parts of the world; we can also choose to loan money in Kiva's specific experiments hoping to disrupt the notion of what's possible/practical in non-profit microlending - experiments such as 6 year grace period university tuition loans in Africa, zero-interest Paypal -intermediated loans in US, mobile SMS based lending in Kenya, green in-kind biodigester loans in Mexico, and loans to high-risk conflict zones where startup capital is scarce and needed more than ever to fuel recovery. by former Kiva Fellow Sulin Lau KF20 2013
Transcript of #TEDxMS 2013 : Individuals Changing Lives One Loan at a Time via KIVA
2009-2012
2009-2012
2009-2012
35th birthday
For many of us, global poverty feels impossibly large.
With half the planet living on less than $3 a day, it's easy to get overwhelmed to the point where we fail to act.
It's easy to forget the power that we have as individuals.
Premal shahPresident, Kiva.org
HOW?Part I - individuals changing individuals via Kiva
Part 2 - changing the game in entrepreneur funding
Donate and buy my right to go on with my
(affluent) day
Feel powerless
Do something that actually matters.....?
Microloans to creating micropreneurs
Microloans to creating micropreneurs
Peer-2-peer lending - idle money becomes capital
peer-2-peer micropaymentsconnected global market/
community of willing borrowers and lenders
+
Elizabeth Omalla
Ugandan widow with 11 dependents
Borrowed $500 in ’05
Purchased freezer, fish at wholesale prices
0
125
250
375
500
1 2 3 4 5 6 7
7 loans in Uganda$3,500
mils cumm loans
461mil1.1mil entrepreneurs
72 countries99.98% repayment
Small loans $ mil crowdfunded per year
watch live loans at kiva.org/live
$1mil lent every 3 days!
975,394who lend on KIVA
1.1milentrepreneurs funded
:
Each one of us can directly change 1 life by turning spare change into
small biz capital
PART II
kiva as a bigger “catalytic” force
.....how about partnering the global crowd to disrupt the way social lending works
?
$$
$
$
$
$
$
$
$
$
KIVA CAPITAL IS CROWD-FUNDEDTHUS, UNIQUE FROM OTHER SOURCES
DO GOOD, ZERO INTERESTSMALL AMOUNTS $25HIGH RISK TOLERANCEDIVERSE BASE & LENDING
PHILOSOPHIES
uniquely placed to test game-changing social innovations
higher edu
green/energy
women conflict areas
low cost/ scalable
technology
$
Loans to conflict or post-conflict zones to fund small business recovery
6-20 year higher education loanshttp://www.kiva.org/labs/accesstoeducation
Rosemary, South AfricaThe first pilot batch to fund her tuition through a Kiva loan.
• Student loans for low income require long terms and grace periods and affordable interest rates
• zero credit history
• zero collateral• The opportunity
cost and risk just too high for normal financial institutions
Green “in-kind” loans (e.g. working with biodigester company, not bank)
zip loan
26
27Kiva Zip uses strangers online to fund entrepreneurs deemed“too risky” for any bank or MFI - and does so at half the cost
$0
$0.25
$0.50
$0.75
$1.00
Top 5 U.S. MFI * U.S. MFI avg. ** Kiva Zip Q2 2013 actual Kiva Zip 2013 forecast
* Source: MFI Annual Report; ** Source: AEO
In just 18 months, Kiva Zip is already more efficient than any U.S. microlender
Industry ave $0.42 per $1
Kiva Zip is at $0.25 today
costs $0.87 to admin $1 of microloans**
Startup< 1 year1 - 3 years3 - 5 years> 5 years
More than 50% of microloans are to biz < 1 year of borrowers never got
a college degree30%to ethnic minorities55%borrowers live in households earning less than $20k / year64
28Disrupting the current MFI model - then exporting it
0k
5k
10k
15k
20k
2011
2012
2013
2014
2015
2016
Kiva Zip aims to support more entrepreneurs per year than the entire U.S. micro-finance industry by 2016
Current U.S. microfinance industry (total loan volume est 400+ MFIs)
400 MFIs in the U.S.
millions ofBut
small biz assistance providers
Farmer support groups
faith based orgs
communities &
associations
public & private
individuals who care enough
Universities & technical
schools
Veteran groups
Tech Incubators
reformed criminal support groups
minority, refugee &
women assistance
groups
Each one of us can directly change lives by turning spare change into
small biz capital.
wanna try?
LEND: Kiva.orgLEARN: Kiva.org/labsJOIN: kiva.org/team/malaysiaVOLUNTEER: Kiva.org/fellows
SAY HELLO: [email protected], @sulinlau
