Discovering kiva.org

In all the recent posts I’ve been reading about peer-to-peer lending, including the excellent reporting by Jim Bruene at NetBanker and Colin Henderson at The Bankwatch and CommunityLend, I hadn’t come across Kiva.org.

I’m very excited about social personal finance and think it may well change the way people exchange money when they just need to borrow or invest a small to medium amount and don’t want to bother with a bank or credit union.

But tonight my aunt showed me Kiva.org, and I got to admit I was a little embarrassed to admit that I didn’t know what it was. It’s an amazing concept where anyone can make microloans to people in the developing world who need small amounts of money to start an enterprise. According to their website:

Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you’ve sponsored. As loans are repaid, you get your loan money back.

You can cash out when you’re repaid or reinvest it into a new opportunity. I think this is genius. Did everyone else know about this and somehow I’m the last to the party? Hard to be shown up by my aunt after all…

I started tonight by investing $25. Kiva.org asks you for a 10% addition as a donation to keep them running. That’s optional. You can pay by PayPal or credit card. When you’re done you can easily send the info about the cause you donated to to your email list to spread the word. Nicely done.

Here’s who I donated to: Massan Aziado of Togo. Fantastic and inspiring!

The social web as community platform.

Vancity, like many mission-driven organizations, is involved with lots of community activities and events. We ask our members to vote for organizations to donate money to and for our Board of Directors, as well as asking them to engage in a variety of community events that we’re involved with or sponsor.

Now that ChangeEverything.ca has been operating for almost a year and has well over 1,000 registered users, it’s big enough we can use this community platform to engage people in the issues we are involved with. Let me make it clear that we won’t use it to promote our product or services, our rates or promotions, nor our main credit union or banking functions. But we can use it to engage people in the myriad of community activities we’re involved with, activities that our members say they want to know more about.

Now, every mission-driven organization doesn’t need their own social networking site to do this. Vancity’s Online Community Moderator, Kate recently used Facebook as well as ChangeEverything.ca to launch our Bike Share Program. The details, as well as how to get involved are listed at ChangeEverything.ca, but she used Facebook as a way to get the word out about the kickoff event. You can see our Facebook event here.

I would argue that Facebook represents an important, free opportunity for credit unions to leverage, and expand the knowledge of what they’re doing in the community among their members and prospects. Not as a place to directly acquire new members (although that may be a happy outcome), but as a place to engage your community (whether members or not) around your mission. It’s an advantage credit unions have over banks because they’re inherently more community-oriented and therefore have more credibility in a place where people gather online.

When I first happily got sucked into the world of Facebook, I noticed that there were already two Vancity groups, one for employees and one for investors. These weren’t created by Vancity intentionally, but the community wanted a place to discuss issues about us. We can either be passive and watch these conversations about us take place, or we can engage back and inform these discussions, not direct them, but get involved and see what we can learn by doing so. As long as the people involved understand and respect Facebook and aren’t there just to obviously shift the focus to a sales and service approach, we should find ample opportunity there.

Oh, and next time you’re on Facebook, please say hello.