The Kiva Story:Connecting through Lending

Kiva Translators ProgramKiva Fellows Program

JD BergeronDirector, Kiva Fellows Programwww.kiva.org/volunteer/

"Revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries”

Kiva Homepage: www.kiva.org

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A simple story: this is a real person!

Kiva Vision, Mission and Core Beliefs

Vision• Everyone connected.

Everyone empowered.

Mission• Connecting people

through lending for the sake of alleviating poverty.

Core Beliefs 1) Power of Microfinance2) Partner Relationships3) Transparency4) Spread of Technology5) Lending is Connecting6) Sustainability7) Industry Inclusion

Kiva 101: How does it work?

Money

Information

Local Partner(MFI)

EntrepreneurInternetLender

Online marketplace

How Kiva tries to make it “Fun” Rich user generated content, changing fast...

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Loans are fully funded in hours (MFI staff love

this)…

Transactions happen every 37

seconds…

Real time un-edited

progress updates from

around the world…

‘Popular’ entrepreneurs rapidly rise to

the top…

Randomized “1 minute of

fame “ for Lenders…

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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

Where does Kiva work?

Sierra Leone

Sierra Leone

UkraineUkraine

S.SudanS.Sudan

PeruPeru

UgandaUganda

D.R.D.R.

MexicoMexico

BosniaBosnia

HondurasHonduras

NicaraguaNicaragua

BeninBenin

Kenya

Kenya

Azerbaijan

Azerbaijan

ParaguayParaguay

Tajikistan

Tajikistan

Cameroon

Cameroon

CambodiaCambodia

IndonesiaIndonesia

VietnamVietnam

GhanaGhana

TogoTogo

SamoaSamoaTanzania

Tanzania

Philippines

Philippines

Mozambique

Mozambique

Rwanda

Rwanda

BoliviaBolivia

Senegal

Senegal

LebanonLebanon

PalestinePalestine

Afghanistan

Afghanistan

GuatemalaGuatemala

El SalvadorEl Salvador

MaliMali

Getting Press

"Revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries”

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

+425,000 social investors have lent +$59 million in first 3 years.

Other Key Stats• Growth: $1M loans every 10 days.• Risk: 3.5% delinquency rate / < 0.5% default rate• MFI Portfolio: 97 MFIs in 42 countries. Growing 3 a month.• Traffic: 100,000 site visitors a week.• Organization: 30 employees / +400 volunteers • Leverage: Platform raises $10 in loans for every $1 donated.

5 yr goal = $1 Billion

Kiva by the Numbers

• Time since launch: 41 months (Oct-2005)• Loans: $58 million, growing $1 million every 12 days• Lenders: 425K people from 70+ countries• # of loans funded through Kiva: 67,869• Borrowers: 40K entrepreneurs from 41 countries• MFI Partners: 88 MFIs, growing at three per month• Traffic: 100K+ visitors per week• Activity: Loan made every 9 seconds• Risk: 98.74% active loans on time / 1.26% default rate• Average size of loan for funding: $452.53• Average total amount loaned per lender: $136.53• Average number of loans per Kiva Lender: 3.66• Org Size: ~30 employees / 400+ volunteers • Leverage: Platform raises $8 for every $1 in expenses• Goal: $1 Billion from 10M lenders in 5 years.

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Change Lives: Translators

What Are the Requirements?

Kiva seeks volunteers with:– High-level proficiency in a foreign

language– Excellent writing skills in English– Ability to commit to two hours per

week for three months as a volunteer

– Check email frequently and comfortable using new technology

Previous translation experience is helpful, but not required.

Kiva.org is the first person-to-person micro-lending website, lending directly to entrepreneurs in developing countries.

Volunteering from their own homes, Kiva volunteers translate entrepreneurs' profiles into English, which are then posted for funding at Kiva.org.

The Kiva Translation Program offers individuals the opportunity to:

– Make a direct contribution to Kiva– Improve language skills– Form a network of volunteers– Build your resume

What Is the Kiva Translation Program?

What Languages Are Needed?

Language needs include:– Bahasa Indonesia– French– Mongolian– Portuguese– Russian– Spanish– Vietnamese– Future needs: Arabic, Armenian,

Dari, Pashto and Tagalog

Apply Today

www.kiva.org/volunteer

Change Lives: Fellows

Who Volunteers?

Kiva seeks volunteers with:– Fluent language skills– Backgrounds in economics,

finance, and international development

– Overseas experience– Excellent writing abilities– Knowledge of various web

applications– Problem solving skills– A high level of self motivation– Ability to fundraise for their trip

How Do I Apply?

Fellowships last 10 weeks to one year in the field

Upcoming application dates are:– KF7 – Nov 1, 2008– KF8 – Mar 1, 2009– KF9 – July 1, 2009– KF10 – Nov 1, 2009

To apply, go to our website www.kiva.org/fellows

For questions not answered in the FAQ, contact kivafellows@kiva.org

Kiva.org is the first person-to-person micro-lending website, lending directly to entrepreneurs in developing nations

The Kiva Fellows Program offers individuals the opportunity to:

– Travel abroad to a developing country

– Chronicle the lives of the working poor

– Assist a Microfinance Institution– Forge the Kiva relationship with

the Microfinance Institution

What is the Kiva Fellows Program?

“Revolutionising how donors and lenders in the US are connecting with small entrepreneurs in developing countries.”

APPENDICES

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Where does the KF fit into the picture?

FieldPartners

FieldPartners

Kiva.orgKiva.org

BorrowersBorrowers

LendersLenders

KFKF

Facilitating Connections

Field Partners

Field Partners

Kiva.orgKiva.org

BorrowersBorrowers

LendersLenders

KFKF

Three Challenges for Kiva

• Keeping loans on the site

• Keeping the integrity of the data

• Keeping lenders engaged

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Key Stakeholders of the Kiva Fellow

Who are the Kiva Volunteers?

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Role of the Kiva Volunteers

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How loans get to lenders

*According to the 2008 lender survey, the loan’s profile is the #1 factor in their decision to lend.

The country of the borrower was the #2 factor.

Kiva in Africa

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Videos from the Field: Nigeria

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http://www.youtube.com/watch?v=CgkSjkTgWtk

Videos from the Field: Togo

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Kiva in Asia and the Pacific

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Videos from the Field: Cambodia

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http://www.youtube.com/watch?v=VaRGO973yF8

Kiva in Latin America and the Caribbean

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Videos from the Field: Peru

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http://www.youtube.com/watch?v=G_CdDVYEbgs

Kiva in Eastern Europe and Central Asia

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Videos from the Field: Bosnia-Herzegovinahttp://www.youtube.com/watch?v=Q91PocWI_uk

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Videos from the Field: Azerbaijan

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http://www.youtube.com/watch?v=LcyIvrHPjBs&feature=related

Kiva in Middle East-North Africa

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Kiva Fellows Blog

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How to Apply!

www.kiva.org/volunteer/

• Kiva Translators: send an email of interest

• Kiva Fellows: submit an online application

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• Increase transparency• Social performance tracking

• Unearth promising & problematic MFIs

• Credit bureau for the developing world?

• New funding source for risky/costly MFIs / clients• Kiva’s lenders are more risk tolerant and value impact

• Enables down-market reach

• New margins increase ability to provide health / education services

• Develop a new class of social investors / globally concerned citizens

Promise of Kiva for Microfinance

How a Kiva Fellow Adds Value

1) The Power of Microfinance• Kiva Fellows engage in microfinance as a tool for poverty alleviation on a very

personal level, an experience they will carry with them their entire lives.2) Partnership Relationships

• Kiva Fellows strengthen the connections between all stakeholders3) Transparency

• Just by being there, Kiva Fellows get the real picture and promote better understanding

4) The Spread of Technology• Kiva Fellows train MFI staff to work with Kiva’s policies and backend technology

5) Lending is Connecting• Kiva Fellows generate high quality content, as evidenced by comments on

Journal Updates6) Sustainability

• Kiva Fellows learn and document the host MFI’s processes – Kiva can’t be everywhere at all times

7) Industry Inclusion• Kiva Fellows bring information—best practices—about how microfinance really

works in the field back to Kiva

Kiva utilizes five principles of “Web 2.0”

1. Create an “addictive” user experience

2. Be “radically transparent”

3. “Crowdsource” against constraints

4. Build in “increasing returns on data”

5. Reach the “long tail”

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“Addictive” = Easy + Fun

Keeping Lenders Engaged

Improving the secret sauce

Be ‘Radically Transparent’

Transparency Authenticity Trust

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Kiva and “Crowdsourcing”

We have little money, but great partners!

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

Free computers and early funder

The long tail of MFIs

Tier I Tier 2 Tier 3 Tier 4

Inve

stm

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Siz

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The Internet is a promising way to reduce costs and distribute risk in Tier 2 - Tier 4 investing

Big investment opportunity?

Kiva can uniquely reach the microfinance ‘long tail’

Tier I (e.g. Grameen Bank) ----- Tier IV (e.g. church congregation)

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of

fun

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in

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The Internet is a promising way to reduce costs and distribute risk in investing in smaller (Tier II - Tier IV) Microfinance Institutions.

Could Kiva help discover and scale the next Grameen Bank?

Kiva’s platform can aggregate and deliver risk capital unlike any commercial source• Kiva lenders value social return / tolerate risk more than institutions• $25 investments size ensures risk distribution across thousands of investors• Less established MFIs can build a reputation slowly over time (like on eBay)

Results: +270,000 lenders from +70 countries in 2.5

years…

How Kiva tries to make it “Fun” My Page, My Portfolio…

“My Page” encourages self

expression, evangelism and

loyalty…

“My Portfolio” concept encourages further lending, risk diversification and inter-

lender competition…

Meet some field partners

Meet some field partners

Meet some borrowers

Meet some borrowers

Meet some borrowers

How can you get involved? Lending Teams 101• How does Lending Teams work? Members of Lending Teams continue lending as individuals, but they have

the option at check-out to count each loan they make towards the overall impact of one of their teams:

• How do you participate? Starting or joining a team is easy. Go to the new Community tab to view teams and then request to join one or more. Start your own team if you don’t

find one that you like and start recruiting friends to join

• Why participate? If you affiliate with any type of group – people who went to Stanford, other Kiva Engineers, people who live in London – Lending Teams is an easy way to get

these friends turned on to Kiva, measure collective impact and communicate with each other along the way