Virtual Interview: Lending Circles - Prosperity Now

Virtual Interview: Lending Circles

June 23, 20151-2pm ET, 12pm-1pm CT, 11am-12pm MT, 10am-11am PT

Welcome

Fran RosebushSenior Manager, Field Engagement

CFED

This webinar is being recorded and will be available online within one week.

All webinar attendees are muted to ensure sound quality.

Ask a question any time by typing the question into the text box of the GoToWebinar Control Panel.

If you experience any technical issues, email [email protected].

Trouble dialing in? Just listen through your computer with speakers or headphones!

Trouble dialing in? Just listen through your computer with speakers or headphones!

Housekeeping

Today’s Speakers

Mohan KanungoDirector of Programs and Engagement Mission Asset Fund

Tori MayernickPrograms Engagement FellowMission Asset Fund

Attendee Background

95%

5%

Are you currently operating a Lending Circle?

No Yes

48%47%

5%

Rate you understanding of the Lending Circles model.

Brand New Somewhat Familiar Expert

About Mission Asset Fund

We are a nonprofit organization on a mission to create a fair financial marketplace for

hardworking families.

RESPECT BUILDMEET

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

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

Expand the nationwide network of Lending Circle providers

What is a Lending Circle? 

Where did the model come from?

mabati

kutu

It’s a global practice

People come together

To lend and borrow

money to each other

WANT TO APPLY FOR DEFERRED ACTION BUT DON’T HAVE $465?

WANT A SAFE AFFORDABLE WAY TO BUILD YOUR CREDIT?

WANT TO APPLY FOR CITIZENSHIP BUT DON’T HAVE $680?

Lending Circle Programs

What are the benefits to consumers in a lending circle?

As of 5/1/15

INDIVIDUAL IMPACT

168Averagescore increase

$1,051Less high-cost debt

100%Banked and building credit

$4 million Zero-interest

loans

99.42% Repayment

rate

$1.1 millionSaved in fees and interest

$3.3 million Less high-cost debt

NATIONAL IMPACT

What are the responsibilities of Partner Providers? 

Are there “risks” involved?

Set-up, training and technical assistanceLicense to Lending Circles CommunitiesTools and resources Loan servicing and credit reportingFinancial education providerReal-time reportingOngoing partner support

Outreach and recruitment

Screening and enrollment

Group formation sessions

Loan origination

Participant data management

Ongoing participant support

PROVIDERS

How do Partners implement the program?

Comunidades Latinas Unidas en Servicio (CLUES) is a nonprofit in Minnesota founded in 1981. CLUES has an outstanding reputation in serving urban communities. They deliver physical & emotional health, education, family, economic advancement and cultural services. Lending Circles has been part of their program since 2012.

Does MAF provide resources to Partner Providers?

• Monthly webinars & on going staff training

• Online forums to exchange knowledge and best practices

• Dedicated Partner Success Manager

• Easy-to-access knowledge articles and FAQs

• Listing on LendingCircles.org• Easy-to-implement

programs with customizable support

• Automated loan Processing• Easy online interface for

enrolling new clients• Multi-lingual outreach

materials & trainings• Metrics and evaluation

dashboards• Cloud-based programs

• Flexible Social Loan Platform capable of tailoring programs to the communities needs

• Relatively low-resource programs offer high-impact client outcomes.

What is the process to becoming a Lending Circles Provider?

• Check outLendingCircle.org

• Share this info with your team

• Attend a “Becoming a Partner” webinar

• You’ll receive a follow-up email with next steps

• Submit application

• Speak with your Partner Success Manager

• Sign a non-disclosure agreement

• Conversation between ED/CEOs

• Agree on terms and cost

• Sign agreement

• Set-up and training

• Access to Lending Circles Communities

• Ready to enroll participants!

• Visit LendingCircles.org and review these slides with your colleagues

• Register for our next Becoming a Partner Webinar at BIT.LY/mafreg

• Review and fill out a proposal for partnership at BIT.LY/mafprp

Immediate Next Steps

KEEP IN TOUCH

MOHAN KANUNGO,

Director of Programs & Engagement

TORI MAYERNICK,

Programs Engagement Fellow

Email: [email protected]

Twitter: @MAFpajarito

Facebook: Facebook.com/MissionAssetFund

Web: LendingCircles.org

Office: 3269 Mission St.San Francisco, CA 94110

Q & A

What questions do you have for Mohan and Tori?Send them via chat!

Next Steps

• Complete the survey

• Let us know your suggestions for future learning events

• If you are not already a member, join the Assets & Opportunity Network to stay informed and engaged!

Thank You!