See how the raised platform subversion banking


author: Julie – Hannah (Julie Hanna), entrepreneurs, investors, and the chairman of the non-profit the raised platform Kiva.org. Reid Hoffman (Reid Hoffman) is a board member of the Kiva.org. (this article was originally published in LinkedIn)

in San Francisco, Teresa, ince (Teresa Goines) hope to break the vicious cycle of poverty and crime. She founded the “Old Cafe, Kurt,” (Old Skool Cafe), want to exit the gangs of young people to provide jobs. When the bank refused her loan application, 41 she never met people and raise the $5000 fund to her. These people leave their trust and money betting on Teresa.

Teresa once a problem teenagers education officials, will be no restaurant industry experience, and this place in San Francisco, most of the newly opened restaurant will not succeed. But the gamble paid off of these people, Teresa paid off the loan. Every year there are 25 troubled young people, lawsuits by Teresa restaurants back into life on track. Nowadays, Teresa has a larger dream: the old Kurt cafe open to all over the United States, for the revitalization of contributions to the community.

as high-tech industry investors, both of us admire the influence big, attracted a large global user base, the rapid growth of the company. These companies can quickly formed the scale, create thousands of jobs, help us raise export economy (the U.S. in global economic output and the proportion of are falling). But we also realize that most companies are small businesses. In fact, about 2700 enterprises in the United States, there are about 21 million without employees, the boss is the only one only a shadow. About the rest of the 590 enterprises, has 460 employees not more than nine.

visible, small businesses are an important part of the U.S. economy. But when Teresa such people are trying to create new business and employment opportunities, the Banks have put them away. Biz2Credit (a online service) to provide financing for small businesses, according to every 10 loan application, Banks will refuse to 8 pen, small Banks will refuse to five pens. Some estimates, the great recession since 2008, small businesses get investment damping is as high as 44%. This means that to stimulate the economy and to help our community thriving capital reduces the tens of billions of dollars. At the same time, 21 million people are unemployed or underemployed. In terms of the world, the situation is worse, half of the people live on less than $2 a day.

talents are everywhere, opportunity is rare, even in relatively more opportunity, opportunity is not common. What is the biggest threat to humanity’s long-term prosperity? Not the financial crisis, not Wall Street that several is said to be “too big to fail” of the health of Banks. We are faced with the real threat is the chance of a global crisis. In both developing countries and developed countries, there are billions of people lack of employment opportunities and money.

this is why we join a non-profit the raised platform Kiva the reason of the board of directors. In this the raised platform, personal loans to small micro enterprise entrepreneurs from all over the world invest a small amount of money. Life in the global 76 countries (including the United States) nearly 1.3 million borrowers, like Teresa has received more than 500 million dollars in loans. 99% of them had to repay the loan. It’s in defiance of bank of credit and trust traditional assumptions.

Kiva is not only the raised platform. Field explosive development of the now, the raise is for entrepreneurs to provide billions of dollars. With IndieGogo, Kickstarter and Lending Club, led more than 700 of the market, raise is pushing “access” democratization, encourage people to entrepreneurship and innovation, and in an unprecedented scale and influence to change the face of the charity.

push “access” the democratization of

one of the best way to achieve common prosperity, is to help the masses investment to the masses. The raised platform to raise funds, pushing forward the innovation of entrepreneur, depends on the wisdom of crowds, it is far more efficient than the bank’s credit rules.

we call the raise “the world bank”, the system rely on services for the masses, it USES a completely distributed, height is expanding, and very fair way to provide credit for the United States and around the world.

the World Bank (World Bank) to finance institutions. “World bank” is raised. For decades, the world bank has been in a top-down manner, efforts to stimulate economic growth in developing countries. “World bank”, by contrast, are adopted a flexible, bottom-up model, more appropriate small micro enterprise entrepreneurs from all over the world, and their community.

the investors of the raised platform with a variety of motives, some people are altruistic, some people love fresh ideas, some are hoping to gain financial returns. Support creative projects on Kickstarter and IndieGogo people usually get some type of reward. On Kiva, small micro enterprise entrepreneurs would repay a debt, but will not pay the interest. In the platform, such as Lending Club is the lender may earn interest.

like Citizen journalists (Citizen Journalist) has rocked the old media, citizens lender may overturn old bank. At present, the Lending Club in America alone has issued $4 billion of personal loans. Kickstarter in just five years, raised $1 billion for more than 60000 projects. Have won at least $1 million more than 60 projects, one project has attracted more than $10 million. Living in Kiva lenders offered $1 million in 198 countries. Finally, the United States has also changed the federal regulations, open the stock the raise, through the market, such as AngelList and CrowdFunder given more power to innovative entrepreneurs.

however, it is still very easy to underestimate the effects of the raise, said the goal oriented market is a too simple tools, for he who does good easily to support projects that oneself like, but it can’t push big structural changes, let all the people (not just a few) become rich. We’re just the opposite.

the advantage of the raised platform

the raised platform can easily cover traditional Banks can’t go. Let’s take a look at Erastus – kaman’s (Erastus Kimani) example: Erastus, a 73 – year – old, live in remote parts of the country, he used to be a teacher, then entrepreneurial TaoLu bladder production. Erastus lived without bank outlets, but he won the trust of the lender from all over the world. They all raise $1700 to help him put the TaoLu tank business three times its size. Erastus against a phone to apply for the loan, and the full return loan. The whole process is completely without the bank clerk, atms, and even computer participation.

more broadly, the raise is a democratic values and ideals of a mature and practical embodiment. It recognized that “person-to-person” is connected with the Internet powered essential fuel. As old media giant is very difficult to compete with the public to promote the content of the growth, the traditional financial institutions cannot expand as the raised platform. Imagine that traditional bank requires much higher costs, to hire enough staff, can raise the lender with millions collection network wisdom.

with the funds for virtualization technology, physical Banks had become a bit redundant like traditional bookstores. In order to reveal its credibility and reliability of the entity bank will be on the tall building in the business, this will only lead to borrowing costs become more expensive. At the same time, “world bank lending infrastructure, is increasingly by” Erastus and his cell phone “such elements. Erastus after paying off the loan, increased reliability, thus obtained by the trustee’s qualification, can be in Kenya for their villages in the melon, other small micro enterprise entrepreneurs to guarantee.