Microfinance goes mainstream in the U.S.

We've discussed the global microfinance trend a bit over at FierceFinance. It's been an idea that has slowly been working its magic in the developing world, where a small loan will go a long way. Now it's going mainstream here in the United States, as well.

A Silicon Valley couple has made great strides with their Kiva nonprofit, which according to the San Jose Mercury News is turning "traditional banking and finance on its head." Kiva, which says it has a 98 percent repayment rate, announced it has handed out more than $100 million in loans over the past four years in loans of just a few hundred bucks.

That has given rise to other microfinance programs, notably MicroPlace, which is run by an eBay unit. It depends a lot on technology, as the whole point in some sense is to connect lenders and borrowers. That brings Facebook apps and widgets into play, to find worthy borrowers, track progress, automate payment and distribution and the like. There's even a developer kit available for people who want to innovate. An iPhone is also available. We'll see if the traditional banks, who have some intense PR needs right now, will jump into this arena.

For more:
- here's the article

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