This document discusses Kiva Zip, a lending platform that facilitates zero-interest loans to small businesses without requiring credit checks or collateral. Kiva Zip partners with nonprofit organizations and community groups called "trustees" who endorse loan applicants. Individual lenders can provide small loans through the Kiva Zip platform, which are crowd-funded and help borrowers expand their businesses. An example is provided of a coffee shop owner named Victor who obtained a $5,000 loan through Kiva Zip to open a second location, with the loan being fully repaid within a year. The document argues this model could help facilitate financial inclusion for underserved borrowers by using social networks and community endorsements rather than traditional credit scores.

1. Technology,
Microfinance and
Inclusion
Center for Social Entrepreneurship
Pace University, April 3 2013

2. “We are all familiar with the concept of a
Church with no walls...
...Kiva Zip is a new kind of wonder - a
lending organization with no physical
bank, no profit, and no interest. It exists
purely.....on faith.”
Ted Jefferson, Bronx Shepherds Restoration Corporation introducing
Kiva Zip to fellow leaders of faith-based organizations

4. TECHNOLOGY HUMANITY

5. TECHNOLOGY HUMANITY
Digital Payments
Social Connectivity
Crowdsourcing

6. TECHNOLOGY HUMANITY
Digital Payments
Social Connectivity
Character
Generosity
Human tiesSelf-Service

7. TECHNOLOGY HUMANITY
Digital Payments
Social Connectivity
Character
Generosity
Human tiesSelf-Service

8. Zero cost to serve
Zero Interest
Crowd-funded Loans
to small business
borrowers more
“trustworthy”
than their credit score
suggests
=

9. 9
The Need

10. The
Solution:
unlocking wealth
from ‘idle capacity’?

11. share
Space
share
Stuff
share
Skills

12. share
Space
share
Stuff
share
Skills
share
Spare $

13. 13
Smallbiz Lending
without Charging,
without Credit Scores and
without Collections.

14. 14
Re-thinking
Smallbiz Lending
with simple, pervasive
connective technologies

15. 15
No branches or staff,
zero marginal cost
0% interest, no
profit, no fees
No credit
scoring
Character &
Competence
No collections agency*Trust* via
connectedness
What IF ?
Target “risky”/ low
income / unsexy /new
startups
Get crowd to fund
startups other
lenders cannot

16. 16
How Kiva Zip works in practice:
Victor’s Cafeto Coffeeshop
Kiva Zip Story

17. Victor, Cafeto and a 0%, $5,000 loan

18. Victor’s ‘trustee’, MEDA

19. MEDA ‘endorsed’ Victor

20. Victor’s
‘crowd’ of
lenders

21. Lenders
expressing
support,
and even
becoming
customers

22. Victor
updating
his
lenders

23. Victor is now 100% repaid…

24. …And he’s applying for a second, larger loan
for his 2nd coffee shop 1 year later!

25. Victor then endorsed his friend Rocio for a loan

26. 26
Examples of Organizations
partnering Kiva Zip as trustees
SEEDSPOT
Incubator, AZ
GREENHORNS
nonprofit, small farm-innovation
SYRACUSE UNIVERSITY
Institute for Veterans & Military Families
TEAM ETSY LITTLE ROCK
Community Center for African American Business
St Louis, MO
Oakland City Church
(Pastor Josh McPaul)

27. 27
Ideal trust intermediaries
Character
&
Competence

28. Future of Financial
Inclusion?
“Anyone”

29. 38%
5%7%7%
8%
9%
27%
Food
Shops
Access, Craft
Contractors, Cleaners, Mechanics
Farms
tech/apps
other
Don’t need a special idea, or great
marketing or videos to get funded

30. So, now you.

31. LEND $25:
Zip.kiva.org/loans
Help spread the word?
m: sulin.lau@fellows.kiva.org
t: @SulinLau
DRINK (for a good cause)
9.30pm April 13. Pera Soho