How Microlending Platform Kiva Empowers Small Loans to Make Big Impacts

Microlending sounds like a risky prospect, but Kiva's marketing crew is trying to make it seem breezy and appealing.

Photo: Allef Vinicius via <a href="">Unsplash</a>
Photo: Allef Vinicius via Unsplash

Everyone needs a little extra cash once in a while. Whether you’re looking to get to work on that project you’ve been dreaming of, or your bills are starting to get a little out of hand, a financial cushion can make a huge difference. 

But when it comes time to get a little extra dough, saddling up with a bank loan can feel overbearing—if you even have access to a bank loan in the first place. In today’s fast-paced AI-driven world, innovative, personalized financial solutions which work for real people are key.

Microlending is the answer. It’s the financial lending solution taking the world by storm, where individuals and small businesses take out smaller, typically less demanding loans from microlenders looking to help out their fellow person.

Microlending to borrowers to make a difference

Of course, whenever a new industry pops up, there will always be those primed to innovate in the space. By blending together this highly appealing, less weighty solution to peoples’ lending needs with sophisticated technology, a number of companies—both existing and new—sprung forth to heed the microlending call.

Kiva is a nonprofit dedicated to providing innovative financial solutions that work for real people. Head to their about page and you’re quickly greeted with a powerful sentence that succinctly lays out why they do what they do: “More than 1.7 billion people around the world are unbanked and can’t access the financial services they need.”

1.7 billion people. As of the time of this writing, the World Population Clock reports that there are nearly 7.9 billion people in the world total. This means that over a staggering fifth of the earth’s population has zero access to institutionalized banking services. 

Kiva addresses this population, which is routinely failed by institutions, directly. On Kiva, when a borrower applies for a loan, it gets posted to Kiva’s site where lenders—regular people like you and me—collectively crowdfund the loan in increments of $25 or more. Over time, the borrower pays the loan back on a computer or via smartphone, and lenders can then recycle the repaid money back to new borrowers.

Photo: Igal Ness via Unsplash

Lending a helping hand to make someone’s future

On their front page, Kiva demonstrates how their lending community which spans 77 countries and over 1.9 million lenders has already funded over $1.6 billion, while their borrowers have a repayment rate of 96%. Those numbers speak for themselves.

It’s due to Kiva’s strong messaging that this ecosystem is able to thrive. Borrowers are attracted to the service as it allows them to search for loans that are small. Meanwhile, the path to repaying this new loan is clear and feasible. 

Crucially, the loans offered are still big enough to make a tangible difference in a person or small business’ life. Once a loan is taken on, Kiva’s technology provides them specific data with which to fully understand what their loan entails and how they should go about paying it back over time. 

For lenders, Kiva creates the feeling of making a significant difference in someone else’s life, all the while feeling assured that they’ll be making that money back in due time. With the usage of Kiva’s sophisticated tech platform, they’re able to develop repayment plans for lenders to come, understand where current lenders are at with repaying their standing loans, and identify new digital regions to recycle money into. 

After all, Kiva helps offer loans, not donations. Part of why lenders are so attracted to Kiva is because they’re clear about this distinction on their front page. In other words, if you lend through Kiva, the nonprofit is committed to making you feel completely insured you’re making the right choice.

MarketSmiths Case Study

LendingFront is an end-to-end lending platform that helps regional banks, credit unions, and alternative lenders close more small business loans with confidence and ease. In 2019, the fintech startup tapped MarketSmiths to launch its blog with articles that compelled lenders to use its software to simplify loan applications. But soon, the message shifted, and MarketSmiths helped LendingFront craft posts that supported small business owners amid the COVID-19 pandemic. Through our copywriting and content support, LendingFront has generated organic leads and revenue through its high SEO ranking, thus boosting its credibility and authority. 

> Read the full case study

Empowering others to feel good

Since money is constantly recycled into the microlending platform to new lenders, lenders and borrowers alike benefit from a sustainably growing lending solution that crucially doesn’t sacrifice the brand’s intimate feeling of positivity. That sounds like a win for everyone, if you ask me.

All in all, Kiva’s messaging throughout their borrower and lender-facing marketing can be summarized into two key pillars: empowerment and goodness. Through Kiva’s tech-powered microlending platform, this nonprofit’s marketing foundations speak powerfully: make someone’s aspirations happen, and feel good doing it. 

Looking to invest in fresh, creative copy for your business to feel good about? Get in touch with the team at MarketSmiths today!

Devin Raposo

Devin Raposo

Forever curious, Devin writes to learn. Before becoming a ‘Smith, he studied as a software engineer while honing his craft writing short fiction as well as acerbic cultural critique in the arts space.

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