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Lending Circles
- 1. RE:BUILD – LENDING CIRCLES
- 2. AGENDA • Mission Asset Fund • The Shadows • Our Solution • Impact • Roles and Responsibilities • Leveraging Technology • Process to Become a Partner • Next Steps, Questions, Closing
- 3. MISSION ASSET FUND We are a nonprofit organization on a mission to create a fair financial marketplace for hardworking families. RESPECT BUILDMEET
- 4. THE SHADOWS STUCK STRAPPEDINVISIBLE 26 million people are credit invisible 17 million adults are unbanked Wages are flat and cost of living is up 19 million do not have enough credit history to generate a score Average interest rates at payday lenders rage from 391% to 521% 9.5% income spent on financial services
- 5. OUR SOLUTION TRANSFORM SCALERECOGNIZE Participants are financially savvy, innovative Informal financial strategies are bona fide activities Create programs to transform financial pain points Build savings and credit opportunities Use technology to increase capacity and impact Build the nationwide network of Lending Circle providers
- 6. RECOGNIZE mabati kutu It’s a global practice People come together To lend and borrow money to each other
- 8. READY TO APPLY FOR DEFERRED ACTION BUT DON’T HAVE $465? WANT TO MOVE INTO A NEW APARTMENT BUT CAN’T AFFORD THE SECURITY DEPOSIT? READY TO APPLY FOR CITIZENSHIP BUT DON’T HAVE $680? SOCIAL LOAN PROGRAMS
- 9. FINANCIAL MANAGEMENT TRAINING • Savings & Investments • Mortgages • Payment Types & Credit Cards • Credit Scores & Reports • Insurance & Taxes • Financing Higher Education • Identity Protection • Overdraft • Retirement 101 • Payday loans • Auto loans • Prepaid cards • Mobile Payments 13 INTERACTIVE MODULES:
- 11. INDIVIDUAL IMPACT As of 5/1/15 INDIVIDUAL IMPACT 168 Average score increase $1,051 Less high- cost debt 100% Banked and building credit
- 12. $4.3 million Zero-interest loans 99.42% repayment rate $1.1 million Saved in fees and interest $3.3 million Less high-cost debt NATIONAL IMPACT As of 5/1/15
- 13. NETWORK APPROACH TO SCALE
- 16. Capacity (to provide & support) Cohesion (mission and program alignment) Commitment (> 2 year) Community (needs / target populations) WHAT WE LOOK FOR IN A PARTNERSHIP
- 17. Up to 5 new partners 10 States BETTER NORTHWEST INITIATIVE $250,000 Loan Volume How do we build a better community in the BA through this initiative
- 18. THE NEXT DOOR’S STORY The Next Door, Inc.’s 89 Lending Circle participants have generated $61,200 in social loans. With a 100% repayment rate, their clients have been able to use the Lending Circles program to purchase homes and take businesses to the next level.
- 19. Q&A
- 20. OUR FUNDERS Annie E. Casey Foundation,Ashoka, Bank of America, Bank of the West, Capital One, Experian, Friedman Family Foundation, Goldhirsh Foundation, Marcled Foundation, SF Foundation, SF Mayor’s Office of Housing, SF OEWD, SiliconValley Community Foundation,Thompson Family Foundation,Walter and Elise Haas Fund,Wells Fargo Innovators Visionaries Supporters
- 21. STAY IN TOUCH MOHAN KANUNGO, Director of Programs & Engagement Email: [email protected] Twitter: @MAFpajarito Office: 3269 Mission St. San Francisco, CA 94110
Editor's Notes
- #18: Update these numbers when NW partner decisions have been made Change: “Up to 5 New Partners” to “X New partners” (number we selected), Change “10 States” to “X States” (number of states newly selected partners represent).
- #19: Reference other northwest partners including CLUES and El Centro. Talking points for Gabriel (the Next Door): - Why do their clients join Lending Circles - Individ success story (Gandara’s Alterations) - Highlight from a formation - What has he seen to be the impact in the community