I honestly forget who introduced me to Kiva — maybe my former co-worker Dr Jim, definitely one of the more socially minded people at Sun Microsystems in the pre-Oracle days. I just made my 140th Kiva loan, bringing my total notional amount to just shy of $4,000. With a 2017 resolution to do more social good and build bridges, I made a small donation to Kiva and topped off my account so that I was able to fund seven new loans today, primarily using the balance from previous repayments over the last six months.
Some interesting statistics, most taken from my private page, a few from my public lender profile:
If you’re wondering about that “International Bank” bit, it’s liberated from The International Bank of Bob: Connecting Our Worlds One $25 Kiva Loan at a Time which is an amazing introduction to the world of unbanked populations, microloans, and social impact.
In this last batch of loans, I made sure I included a country in which I’d never made a loan before (Congo and Peru), and a segment I hadn’t funded (arts). Of course, I also made a few new loans in Rwanda, where I’ve seen excellent performance of the portfolio and have had a personal interest since our daughter spent a month in the hills teaching English. My investment strategy is simple: I am for loans that are under 12 months in duration (because it allows me to turn the funds over, and because I believe that limits the dynamic range of delinquency events). Look for field partners who have experience, low default rates, low currency risk, and make an about-market return on their funds (so they aren’t taking advantage of their local customers, but aren’t in the money losing business).
High notional volume, low return, multi-party mutual funding — it’s the model that grew the American insurance businesses through the 1950s, and now it can grow small scale business opportunity. If you grew up in the Tri-State Area and remember Phil Rizzuto pitching for the Money Store, it’s that idea taken globally.