Case Study - Kiva microfinance

Kiva is the world's first person-to-person micro-lending website, empowering individuals to lend to unique entrepreneurs around the globe. (kiva.org)

















Everybody loves a feel-good case study. Kiva is probably one of the most successful mirco-financing sites I have come across. Micro-financing you ask? Whats that!? Well, just like it is hard right now for some people in North America to get loans - imagine how hard it must be if you live in Africa and have no capital. That's where Kiva steps in - instead of sponsoring a child, you sponsor a businessperson. Lenders do not recieve interest back, although beneficiaries are charged some interest. The good news for you, is that there is a 98% rate of paying back loans, so its a win-win!

How Kiva has made a social change, is that it allows people who have some money, just sitting in the bank, to make better use of it for a good cause.... along the way, take some needy people out of the cycle of poverty.

There are a whole lot of Apps for Kiva other than the main website, at this stage, I don't think they are developed by Kiva, but most of them are recommended on the Kiva website. So basically you can keep track of your loans and the businesses that you are benefiting via twitter, widgets, igoogle, iPhone, mobile device, websites and email! This is a way to communicate and help people that you would probably never come across if it weren't for this concept.

Whats also awesome about this concept is that teams can compete for highest amounts of loans! From first glance, I saw a "team Canada", "London", and various social and religious affiliations.

Profile
Kyle
Toronto
Middle aged, steady job, educated.
Very busy
Enjoys surfing the web and using his iPhone
Does not have much time to contribute to charity causes, but loves business and wants to help other people, without risking much of his own money.
Prefers trusted brands.

Scenario
Kyle logs onto kiva.org
Selects a business/businessperson who he wants to support
Donates nominal amount
Tracks the success of the business while waiting for the bus
3-6 months later, this loan is repaid,
Searches for another business to support

Source - World Summit Awards