Non-Profit Digital Infrastructures
An example of a digital infrastructure is the non-profit organization Kiva. Kiva is a non-profit organization that allows people from around the world to lend money via the Internet to low-income/undeserved entrepreneurs and students in over 70 countries. According to Kiva.org, you can lend money to an entrepreneur across the globe for as little as $25.
According to kiva.org, This infrastructure has helped the people who use it by providing them with safe and affordable access to capital. It provides those in need with the capital necessary to flourish at that moment instantly. By providing people with safe and affordable access to capital, Kiva helps people create better lives for themselves and their families. The way that the non-profit organization works is as following. It works with microfinance institutions on five continents in order to provide loans to people who cannot access traditional banking systems. Kiva.org further states that 100% of the loans are sent to these microfinance institutions. These microfinance institutions are called Field Partners and they administer the loans in their field.
Kiva.org states that since it was founded in 2005, it has 1,264, 610 lenders. It has $682,627,350 in loans plus 98.75% repayment rate. In addition, the organization works with 293 Field Partners and has 450 volunteers around the world. It exists in around 86 countries. The most amazing aspect of Kiva is that 100% of every lent dollar goes directly towards funding loans. The organization does not take a cut and most importantly, it does not charge its Field Partners interest. Kiva.org states that the organization is funded thanks to the generosity of its lenders that make optional donations and by raising funds through grants, corporate sponsors, and foundations.
It is important to also understand how Kiva functions. According to kiva.org, first you choose a borrower. Then you make a loan. Thirdly, you get repaid when you get updates as the borrowers you support succeed and are able to repay their loans. Lastly, you repeat the process.
Two lessons that digital entrepreneurs can learn about digital infrastructure from Kiva are that establishing a platform that lends loans to those in dire need is more successful if the borrower is held accountable. As a result, the borrower is able to receive its necessary funds and then repay them back to those who loaned the funds to them initially. Secondly, digital entrepreneurs can also learn from the digital infrastructure of Kiva that asking for a donation as little as $25 can helpt attract more lenders plus increase the number of borrowers.
Sources:
https://plus.google.com/u/0/+Kiva/posts
http://www.kiva.org/about