'Kiva Zip' is a micro-lending program that is primarily intended for American entrepreneurs. Everyday, financial institutions across the US reject loan applications from those who do not meet basic eligibility criteria such as cash flow, credit score or amount of available collateral. This platform is designed to provide funding for those who may not meet standard lending criteria.
Kiva Zip is a micro-lending program that takes a more personal approach to finance. Instead of relying on a standard set of criteria, Kiva Zip looks for entrepreneurs who are trusted by their community. The company refers to its model as 'social underwriting,' which means taking a less data-driven approach to lending. As senior director of Kiva Zip Jonny Price explains, "We're trying to underwrite people based on their character and their standing in the community." As a result, the company empowers entrepreneurs who might otherwise abandon projects due to lack of funding.
The company offer a unique approach to micro-lending that ensures all entrepreneurs have an opportunity to access the funding they need.
Social Underwriting Platforms
This Micro-Lending Program is Aimed at American Entrepreneurs
Trend Themes
1. Social Underwriting - Disruptive innovation opportunity: Developing social underwriting platforms that take a less data-driven approach to lending, focusing on trust and character, instead of standard credit and financial criteria.
2. Micro-lending Programs - Disruptive innovation opportunity: Developing micro-lending programs that aim to provide funding for small business owners and entrepreneurs who may not meet standard lending criteria but are trusted by their community.
3. Community-based Finance - Disruptive innovation opportunity: Developing community-based finance models that enable individuals or organizations to lend directly to small business owners and entrepreneurs, empowering them to access funding for their projects.
Industry Implications
1. Finance - Disruptive innovation opportunity: Developing social underwriting platforms and micro-lending programs that disrupt traditional lending models and increase access to funding for underserved entrepreneurs and small business owners.
2. Small Business - Disruptive innovation opportunity: Developing community-based finance models that enable small business owners and entrepreneurs to access funding from members of their community who trust them and their projects.
3. Social Impact - Disruptive innovation opportunity: Developing social underwriting platforms and micro-lending programs that aim to have a social impact and empower marginalized and underrepresented groups to access funding for their business ventures.