I, Lender
Software engineer Matt Flannery pioneers Internet microloans to the world's poor
- By Amy Crawford
- Smithsonian magazine, October 2007, Subscribe
“Lending to somebody,” says Flannery, “sends the message that you’re treating them as an equal. It’s a dignifiedway to interact.” Echoing Green
Matt Flannery, 30, co-founded the non-profit Kiva.org, a microlending site, in 2004. Kiva operates on a people-to-people model, allowing private individuals to make loans to borrowers seeking to establish small businesses in developing countries.
How does Kiva work?
Kiva connects individual lenders from the developed world to individual borrowers in the developing world. We work with local microfinance institutions that post the loan applications they get on the Internet. Kiva raises debt capital via the Internet from thousands of lenders in the United States and Europe. The partner institutions sort and administer loans, but our lenders actually fund them.
How did you get this idea?
My wife [Jessica, co-founder of Kiva] was consulting in microfinance in East Africa, and I went along on a trip with her. We had the idea together. I thought it would be interesting to give people the chance to participate as partners, not just donors, with [small] businesses in Africa. I've always been interested in ideas about poverty. I've been sponsoring children through my church my whole life. It was part of my upbringing. What we're doing now is an extension of that personal history.
Why loans rather than donations?
Lending to somebody sends the message that you're treating them as an equal, someone who can participate with you in a business relationship. It's a really dignified way to interact with people.
What challenges did you have to overcome as you were setting up Kiva?
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Comments (3)
Hi,
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Posted by Sharetipsinfo on February 11,2010 | 04:50 AM
How cool is Matt Flannery?! He makes a living by helping underdeveloped countries. It isn't even charity- he allows people to loan their money to buisness owners, treating them as eaquals. Treating people like that is a good way to win the $100,000.
Posted by Jake Browning on November 3,2009 | 06:00 PM
As a result of reading that article, I joined Kiva and made a loan. I am now part of team Obama in Kiva and feel that lending is a way to celebrate the election of Senator Obama as our next president.
Posted by Nancy Grove on November 14,2008 | 02:18 PM
I am very proud of the Flannerys. I counldnt agree more with them - when you treat people as equals you empower them, they dont feel helpless. I have joined Kivo as lender today.
Posted by Doreen Grant on December 6,2007 | 09:11 AM