Direct Money Lending and Micro Saving

Money lending and especially micro credits became very popular in the last years. Those are great and the best possible example is Kiva. But they do not solve every problem. Even if the poor people become a micro credit and manage to make some money, they still remain poor, because they have no possibilities to securely save money. Normally even if they make some money they have no access to a bank account. The banks are not willing to give such small customers accounts because they can make money from this. (An example for a project in micro saving which had to stop is MatchSavings.)

So, we actually need to help the banks who are willing not only to give credits, but also to enable accounts for poor people. This will make more sense. Another possibility is to start such banks. Sooner or later, if we want to help the poor, we have to start to offer them bank accounts. Without this component the microfinance is not going to function. Only credits are not sufficient. And from the credits the banks make a big win. Even Kiva functions through a cooperation with many banks.

So, what about getting rid of the banks? To lend money direct without banks? There are already such possibilities in the rich countries, for example Zopa. Through this platform you can lend money directly to people. Can you imagine what will happen if the big communities include this option? Look at this video.

The problem with this model is that this functions, because we all have bank accounts. We can hardly lend money to people who have no bank accounts. So again, it will be a problem for poor people. Do you have some ideas how to lend money directly to people who need it? What about a shared bank account with people like us. So, open a bank account in a country with many poor people with no access to the banking system and give them the possibility to save money on your account. They can always have their money and the bank is happy because you have enough money on your account. You can even make some money from your account. And you can even lend money directly to the poor. There are already such shared account services and even shared credit cards. Such model can change the finance system. So, let’s share bank accounts with some poor people.