The program, where students live or eat on just $2 per day for one week, raises money for Opportunity Trust Groups in Kenya and Colombia through our peer-to-peer lending website, OptINnow. This initiative gives students the chance to make a personal connection with Opportunity’s clients, learning more about their lives and work.  Throughout the week, students have the chance to create educational opportunities for their peers (i.e. panel discussions, video screenings, etc.) and cool fundraising events like concerts and sports tournaments.

Here’s a little background on Two Dollar Challenge:

During the fall semester of 2006, Dr. Shawn Humphrey gave UMW students in his principles of macroeconomics class a unique challenge: live on $2 a day for a week. In the spring of 2007, that challenge became the “Living on $2 a day” project for his economic development class. The project is now called Challenge Week. Students participate by choosing a cause and a partner, and setting a monetary goal.

Over the past few years, the UMW group has raised over $7,000 benefiting microfinance. This year, the group is  calling on universities and high schools across the country to come together during the month of April, choose a week, and help to raise at least $15,000 to help provide Opportunity’s life-changing microfinance tools to people living in poverty in the developing world.  

TDC provides materials on how to shape this event so that it is fun, educational and productive for the students involved. The manual offers fundraising ideas, event suggestions and leadership tips.

Current school partners include: University of Chicago, Ohio Northern University, Indiana University and UMW. And we’re looking for more. If you or someone you know is interested in joining this exciting event, http://www.opportunity.org/contact-us/contact us[/intlink].

UPDATE: Current TDC school partners include University of Chicago, Ohio Northern University, Indiana University, UMW and Westminster College (Utah).

Happy new year to you all! I hope the holidays and the beginning of this year has been encouraging! We’re excited to start off the year with a fresh energy behind this microfinance chat that has fostered some extremely interesting perspectives. Here’s what we’ve got coming:

First, we took your advice. 140 characters is not enough for an in-depth discussion about microfinance. So we’re moving our 2-hour chat that, occurs every other week, to an online chatroom. This will allow us to not only have the freedom to explain our responses, but for those that miss the chat- you’ll be able to read the full text, have access to the links and use the information to further educate your colleagues, friends and community. As you know and we know microfinance is a powerful economic development tool, that typically takes more the 140 characters to make a well informed point.

Here’s the best part- since this is about collaborative learning, we would love for you to be involved in recommending the panelists, topics, and keeping us up to date on the latest microfinance news! You’ll be able to do this in the chatroom and we’ll be monitoring it and updating on a regular basis.

And don’t worry, we will still be engaging on twitter and facebook, sharing the highlights from our #mifimon discussions.

Our first official #Mifimon of 2010 will be on January 18 from 12pm-2pm CST. We’ll be starting off our series with “Define Microfinance.” This is a great chance for us to talk broadly about microfinace. We invite you to bring some rich content links, your insights on how to do microfinance well, cultural and political elements,  organizations to connect with and local microfinance events in your area. We are working on securing panelists at this time, so if you’re interested or know someone who is, let us know by tweeting @mifimon!

We’re looking forward to this year and hope that together, we can discover even more dynamic ways to empower others with effective microfinance services around the world.

See you on Monday!

1. The Students. Seriously, every day I got to see energy and life and drive in the eyes of these students from across the world. Yesterday, I spoke with a girl from Zambia who is interested in working with us when she goes home to her family. And this is just one example. I also spoke with people from Mexico, Nigeria, Peru, El Salvador, Canada, and several other countries around the world. These are the next leaders of our world – and I got to talk with them every single day that I was here. It was amazing. 

2. The Spirit of Urbana. There’s no mistake. This entire event is about Jesus Christ and his commission for his people to serve the world. We discussed radical giving, environmental sustainability and committing your life to the service and glory of Jesus’ name. The energy behind each of these topics was incredible. Urbana took up an offering in order to support a handful of development initiatives around the world. As of last night (with more counting to go), all in attendance had brought in over $800,000. Thousands of students made a commitment to go into the world and serve the poor – not with answers and cliches, but with passion, living as the poor live, that they might know hope. 

3. The Global Connexions Exhibit. As I mentioned in a blog post on Dec. 30, this exhibit hall included over one thousand representatives of incredible organizations who came together to share about what they are doing in the world. We got to interact with some pretty awesome people who are doing some major good. 

4. Sharing the story of microfinance. Jonathan and I started most conversations with the question, “Are you familiar with microfinance?” With some exceptions, the usual response was “no” and came with this confused and uninterested look. The second, however, that I said, “It’s pretty much banking for the poor,” the eyes lit up and we had a conversation about how entrepreneurs around the world are lifting themselves out of the cycle of poverty. I told them about the training, savings and insurance that we provide our clients and they got even more excited. Then I told them about the ways they can get involved – like our Two Dollar Challenge event in April and they stuck out their badge to be scanned! Hundreds of people now know the story. And that’s powerful. 

5. Believing in Grace. Perhaps the best part of this event has been telling the story of our clients. I told people about interest rates, our business training, even the fact that we serve almost 2 million people in over 25 countries around the world. But the important part of this for me, and for many of the students we talked to is that lives, families and communities are being impacted through this work. I got to tell the story of Elsa, working in the Philippines selling coconut wine, and John’s taxi business in Kenya. I got to share about their families, their dreams, and their successes. They are why we work. 

Last night, as I sat among the large crowd, listening to them sing in Spanish, Rwandan, and Arabic, I closed my eyes and said a silent prayer of gratitude for how global our God is. He knows us well and provides for us in our needs. It is with that knowledge that we walk into 2010, filled with hope, joy and unwavering belief in Grace, Elsa, John, Peter, Analy, and the two million other heroes who will continue to create significant transformation in their families, communities, nations, and the world. Cheers to them! 

 P.S.  There are many ways you can get involved in Opportunity’s mission: join Young Ambassadors for Opportunity (YAO) and help inspire, educate and involve others ; become a YAO facebook fan; help fund a loan for a hardworking entrepreneur at www.optinnow.org to make a difference right away.

As one of the exhibiting organizations, we have the awesome opportunity to interact with students interested in learning more about making significant global impact.  Today alone, Jonathan and I had in-depth conversations about Opportunity’s work with over 100 people. We spoke with students with backgrounds in business, journalism, music, theology, computer science, engineering, and social work. And the perspectives on microfinance were as different as their education backgrounds. Their questions and energy around the topic reminded me of how important it is that we continue to develop and offer products that best meet the needs of our clients. These students get Opportunity’s mission. It’s about the people we serve.

One of my favorite conversations happened today when I spoke with James. He came up to us yesterday, actually. It was hard to miss his smile and energy when he approached us. He gave us a brief introduction and exclaimed, “I’ll be back tomorrow!” And when he came back this afternoon, he asked us questions about technology, our focus on holistic transformation, and how a software developer, like himself, could get involved. That’s when Jonathan jumped in and I watched as two “computer nerds” engaged about a life-changing economic development tool.

The event includes two main sessions each day where all 16,000 students gather together to worship the same God in different languages, methods and art forms. We’re spending the time in the book of John chapters 1-4, studying how Jesus’ ministry transformed lives. Each of the teachings offer practical ways in which students can use their faith to serve others. Tonight, we were presented with the International Justice Mission effort to end human trafficking around the world. It is a privilege to partner with such a life changing group.

Throughout the afternoon, students have the chance to attend seminars on subjects such as international and domestic poverty, advocacy, business and poverty, and missions. The afternoon is also a chance for students to interact with the hundreds of organizations represented here. There are several missions, church planting, development and relief organizations that offer students opportunities to engage.

Tomorrow morning, I have the chance to meet with a couple of girls for coffee who are interested in our upcoming event- the Two Dollar Challenge. We spent the day asking people how much they spend per day on food and recording their responses. And when Megan heard about this way she could rally students on her campus around issues of poverty and actually make a tangible impact in our clients’ lives, she asked for more time. And I’m looking forward to meeting with her!

Being here reminds me even more of the importance the voice of those in the next generation. They are the upcoming leaders, the change-makers. What a privilege to hear their stories, see their passion, and provide them with ways to engage them in the fight to end poverty faster through our work.

You can follow what’s happening in the Urbana 2009 twitter stream by searching #urbana09! Stay tuned!

Moderators: @amycarolwolff @mifos

Panelists: @bhalchander @creditsms @GrameenAppLab @msftcitizenship

Participants: @aaspire @hanacaraka @microempowering @HoracioCoutino @laurakummer @licorous @zyozyfounder @mongkolroek @RealizedWorth @CIPEglobal @CFI_ACCION @digitalkulcha @AJRenold @Optinnow

The topic from this past #Mifimon: strategic use of technology for microfinance.  Technology and innovation have great potential to be a disruptive force that can dramatically accelerate the growth and impact of microfinance on the poor.  With all the new and different technologies being developed, how can the industry prioritize and focus on the appropriate technologies that have thre greatest impact?  Led by @mifos representing Grameen Foundation’s Technology for Microfinance Initiative, we’ll explore how technology from back-end software like MIS to front-end technologies like mobile banking can become a critical enabler to the growth and impact of microfinance today.  Technology when used effectively can have a transformative effect in unlocking greater efficiencies, more direct outreach to the poor, the innovation of new services, greater insight into social performance, and broader financial transparency across the sector.

Questions we discussed:

1. What role can technology play in scaling the growth and impact of microfinance?
2. What are some good innovative uses of technology in the industry thus far? On back-end? Front-end?
3. What barriers does microfinance face in selecting and adopting technology solutions effectively?
4. What is the best way to ensure that technology solutions being developed are appropriate for MFIs?
5. What are some examples of technology implementations that did not achieve the desired impact?  How did you address these challenges?
6. What impact has technology had on microfinance so far?
7. What is your vision for technology and microfinance in five years?
8. How do we address risks introduced by technology?
9. What about security? What are some data concerns posed by technology?

Key Takeaways from the Discussion

Complete Solutions Must Be Holistic and Address the Basics

@msftcitizenship: MFIs must think of whole picture and address basics like IT budget, stable platform, decent MIS, staff training, etc.

@mifos: Complete solution is not tech itself. Must align people, processes, & technology to advance social mission

Address whole picture: back-end, front-end, business processes

@CreditSMS: Branchless banking is the most promising way to expand financial inclusion in un- & under-served communities & tech is the conduit. #mifimon

@mifos: @creditsms: agree that branchless banking is vital but to be taken to scale – must have solid back-end system & optimized processes #mifimon

@HoracioCoutino: KEY in providing mobile banking is Adaptability – To mobile’s capability, to clients, to different comunications channels – #mifimon

Design Mission-Driven Solutions with Customer as Focus:

Aim to design mission-driven solutions (financial inclusion) with the focus of the end user in mind. It is important to remember that our focus is not to be the most technologically savvy, but the most effective in providing these services to our clients. Technology is merely a tool for the delivery of these services.

@msftcitizenship: Ensure user-centric IT by building solutions in partnership w/ MFI staff, not in isolation. solutions must be driven by mission

@hancaraka: Integrated and comprehensive bottoms-up approaches – “need both wings to fly”

@mifos: Open technology & open communities are key to enabling grass-roots innovation appropriate for the client

There is a Need to Work with Government and Local Players

@msftcitizenship: @hanacaraka agree- need awareness thruout ecosystem (leaders, gov, biz) that supports MFIs to encourage adoption from bottom to top

@aaspire: @msftcitizenship yes this involves GOV, Central bank and telecom providers together cud make it happen but wat is a win-win model #mifimon

@mifos: @aaspire: Win-win for private-public partnerships for tech is scale, sustainability & impact. Must have biz model & focus on poor.

Determine if Technology is Appropriate and Address Risks

For technology like mobile banking and the cloud, we must take into account risks and impact on the MFI and our clients. Ignoring these could be a dangerous mistake. Things to consider include: costs, security, power, connectivity, overall appropriateness (which is determined by an analysis of the organization and client’s needs).

@CreditSMS: Standardizing tech is necessary but difficult. Everyone involved has different – & often conflicting – incentives.

Benefits of Technology

@bhalchander: #technology can play a role in almost every aspect of microfinance to help it scale and increase impact

@CreditSMS: Most importantly, ICT can serve as a bridge from the informal to the formal economy, where credit scores & histories are possible

@CreditSMS: By allowing banks to forgo ‘brick & mortar’ structures & leverage 3rd party distribution networks united by ICT, we can reach the bottom of the pyramid more effectively.

@bhalchander: #technology can impact entire microfinance value chain –> Fundraising , client acquisition, product delivery, new product development.

@mifos: Technology (both back & front-end) is key to efficiency, transparency, service innovation, and more direct outreach to poor.

Some Resources to Check Out

Microfinance Leadership Summit

CGAP Article on Technology Standards

An Example of Technology and its Impact from Opportunity International

Seven Ways to Strategically Invest in Technology

We want to wish you a splendid holiday season! We’ll be back in January with a new list of topics, panelists and ways to engage others in your community around the economic development tool of microfinance. Thank you for participating and we’ll see you next year!

Indiana University’s Trockman Microfinance Initiative (TMI) at an event where they reported on their recent trip to Opportunity International’s office in Oak Brook

Last night I had the pleasure of spending a couple of hours with Indiana U’s Trockman Microfinance Initiative (TMI) at an event where they reported on their recent trip to Opportunity International’s office in Oak Brook and then we enjoyed an hour-long movie highlighting the microfinance industry. I have to say, I was impressed with the turn-out! Almost 30 students showed up in the middle of the week before finals to watch a movie about the global impact of this economic development tool.

First, Charlie got up to give a short report on TMI’s trip to Chicago. He shared how grateful they were to interact with Opportunity staff. It was encouraging to hear from several different perspectives within the organization and have a sense of “how it all works”, as Charlie put it.

I then had the chance to get up and talk about Opportunity’s work. But before I started, I invited three ladies up to the front for a give away competition. The task: To come up with an innovative way to spread microfinance education on Indiana University’s campus. Then, I asked the remaining students to vote on which they would be most likely to help plan. The prize: a $25 OptINnow Christmas Gift card!

Here were the ideas:

• Let’s Go Shopping! The first idea was to bring products from around the world into the Indiana University Memorial Union and sell them at the bookstore! With each product, there would be small story attached about the entrepreneur who had made the item. This would help share the story of microfinance and give IU students the chance to shop for a cause!
• IU LoanFest The second idea was to have a big party where students can come and go online to a peer-to-peer lending site and actually make loans together. After all, who doesn’t enjoy social giving?
• Bathroom Campaign Everybody likes something to read while doing their business, right? So why not post flyers on the back of stall doors that creatively share stories about microfinance.

Students in the Trockman Microfinance Initiative compete to come up with an innovative way to spread microfinance education on Indiana University’s campus. The winners receive an OptINnow Christmas Gift card.

And the prize goes to….”Let’s Go Shopping!” Remember, the contest was to see which one you would be interested in planning. I’m curious to see if they can make this happen! I’m pretty confident in their ability.

After sharing about Opportunity and its work in technology, insurance, and other innovative areas, I sat down and we watched a movie presented by Bringham Young University about microfinance. It was refreshing to be reminded of how powerful microfinance is in the lives women and men around the globe. This tool has transformed families and communities. Though it is not the silver bullet- and doesn’t claim to be- it is a progressive way of providing hope to those who have dreams to be realized. Even those of us who are in the industry need to be reminded of this from time to time.

I’m pretty excited to see what else Indiana University will do for microfinance in the next semester. So far, they are planning a panel discussion in February surrounding the topic of microfinance education at IU and will engage with Opportunity in a major upcoming event in the spring. Stay tuned!

Panelist: Ruth-Anne Renaud (rarenaud), Vice President of Women’s Philanthropy and Interactive Marketing, Opportunity International

Ruth-Anne brings more than 20 years experience in providing strategic direction and integrated marketing programs that increase brand equity, expand targeted customer bases, generate revenue and enhance customer and channel relationships. In this position at Opportunity, Ruth-Anne is responsible for leading our online communications team, website strategy, and social media efforts. Leveraging our OptINnow.org platform, Ruth-Anne and the team are creating new ways to maximize the online donation experience enabling new and existing Opportunity supporters to help fund client loans and support strategic microfinance projects. In addition, Ruth-Anne is responsible for developing and supporting fundraising strategies designed to cultivate women donors and meet their special needs and interests. She works with the Women’s Opportunity Network, a key constituent group within Opportunity International, to raise funds for women’s needs, programs and leadership development, and with the Opportunity International Network to connect women donors to program initiatives in the field.

Ruth-Anne holds a bachelor of arts degree in government and law from Lafayette College in Easton, Penn.  She also completed executive courses at the Northwestern, Duke and Penn State University business schools as part of an AT&T management mentoring program. Ruth-Anne was recently appointed to the board of Women Advancing Microfinance (WAM) International. Ruth-Anne lives in Chicago, is a docent for the Chicago Architecture Foundation and leads tours of historic and cultural landmarks, modern skyscrapers and Frank Lloyd Wright homes in Oak Park, Illinois.

Panelist: A Representative from 7Bar Foundation (@Sevenbar)

The 7Bar Foundation is leading a change in the field of philanthropy with business models for social impact. With our philanthropic brands, we are spearheading these models to create consistent funding for female driven microfinance initiatives.

Panelist: Sheethal Shobowale (@lethalsheethal), Founder, Leap Work

A native New Yorker, Sheethal Shobowale attended Columbia University for both her undergraduate degree in Economics-Mathematics and her graduate degree in Strategic Communications. She worked as an investment banking analyst for Fox-Pitt Kelton and as an investment management analyst for Columbia Investment Management Company (the University endowment).  After earning her Master’s degree, she managed the data, analytics and research group of Media Contacts New York, an online media agency, and worked with several Fortune 500 and other large advertisers across varied industries.

Combining her passions for social change, technology and community building, she recently founded Leap Work, a consultancy that works with non-profits and small businesses in their online marketing communications.

Sheethal also spends time volunteering at a local credit union, teaching financial literacy to youth and adults and coordinating her local block association. She is an avid rock climber, rooftop gardener, international travel fanatic and foodie who loves living in Brooklyn.

Sheethal is currently serving as a Kiva Fellow at microfinance institution Asociación Arariwa in Cusco, Peru and will move to La Paz, Bolivia in the new year to continue to serve as a Kiva Fellow with microfinance institution Emprender.

Moderator: Julie Soforenko (@JulieSof, @ACCION_USA), Online Community Manager, ACCION USA

Julie is the Online Community Manager for ACCION USA where she engages and collaborates with people passionate about small business and microfinance. She believes that every person has the power to create social change.

1. On behalf of the 2.6 billion people that live in abject poverty, we are asking at least 26 people per day to purchase a virtual patch on the Global Opportunity Quilt. For just $25, you will be able to purchase a patch, make a statement on the quilt, and then we’ll send you a free online $25 OptINnow gift card to invest in one of the hard working entrepreneurs featured on www.OptINnow.org. This is a great way for you to spread the word to your family, friends, and colleagues.

2. For the next 5 days, commit to engaging in conversation with others about issues surrounding global poverty. And then, share the conversations here! Let us know what shocked you, what encouraged you, or what inspired you to take your fight against poverty to the next level.

Let us know that you’re on board with us by simply posting “I believe we must end poverty, faster ” as a response to this blog. Thank you for joining with us in this effort to bring dignity and hope to our clients through effective community development methods. Thank you for taking a stand with us.

Visit the Global Opportunity Quilt

This week’s call to action:

1. Find an article on U.S. microfinance and post it as a response to this blog and on our #Mifimon facebook page.
2. Have a conversation with a friend or colleague about U.S. microfinance and tell us about it here via a response to this blog!

Let’s build on the great conversation last week (Sept. 24) on #mifmon about domestic microfinance. Some of the major points that came up through the conversation is the a) need for other lending options in the U.S. besides “payday” and credit cards b) the crucial need for financial education and training when building a microfinance program and c) considering whether or not U.S. microfinance actually takes away resources from international microfinance. Specifically, is there a need for “banking services for the poor” in one of the wealthiest countries in the world?

OPTIONS WORTH CONSIDERING

In a time when credit card debt is over $2 trillion dollars, and the banking system is in repair, @Grameen_DC suggested that business owners need other options.  Personally, on Tuesday, I had an interesting conversation with an economics professor at the Kelley School of Business, Indiana University,  regarding non-profit social service. While, admittedly, Dr. Hauskrecht is a cynic of all non-profit community and economic development efforts, he explained that the least harmful and most sustainable method of development creates two things 1) access to current trade markets, with consideration of the country’s current economic standards of interest rates or 2) creation of new trade markets, again with the same considerations. He explained that microfinance, when structured well, can do this both internationally and here in the states. It is important to note that the average size of a U.S. microloan is typically much higher than that of a developing economy.  But one could argue that this accurately reflects the United States’ standard of living and thus, current need. Thoughts on this?

COMMITTED TO EDUCATION AND TRAINING

One of the most important, and unfortunately, neglected elements of financial services is financial and business training and education. You can provide resources to clients, but if they do not have an understanding of how to accurately use these resources, it can create even deeper financial instability.

From the Opportunity International website:

Increasing clients’ financial literacy through the training modules and videos helps them to:

• Better understand the wide range of financial services available to them
• Increase their use of savings accounts and insurance products
• Better manage their credit
• Diversify their assets

And, this point was emphasized several times in the #mifimon twitter conversation – that when constructing a microfinance program, it is critical to weave in training and education as a core service offered to clients.

DEFINING “POVERTY”

Going back to the old Merriam Webster definition of poverty, we’re discussing a state of an individual or group that “lacks a usual or a socially acceptable amount of money or material possessions”. And of course, no one would deny that we have poverty in the United States. But because the face of poverty is different in the US and in other developed nations, it has the danger of being considered as less urgent or important. And this is why I’m grateful for organizations committed to serving the working poor in the developed world. In these nations, poverty is no less psychologically devastating, emotionally taxing or emotionally humiliating. However, instead of being characterized by dirt roads, poor infrastructure, and poor sanitation, it comes in the form of your neighbor, exorbitant credit card debt, and a quiet shame of perpetual financial insecurity.  Thanks to organizations like Grameen America, Accion USA, Lend 4 Health, and others, these poor individuals may also have access to a much needed hand up.

NEXT #MIFIMON

Next week – let’s go international! Pick a country, learn about the microfinance market there and tell us about it here as a response to this blog!

Please join us on October 19, from 12pm-2pm on Twitter for our next #Mifimon! We’re always open to topic submissions! Feel free to post your suggestions in the comments section.

This summer, Opportunity International created the discussion, #Mifimon (Microfinance Monday was too long for twitter’s 140 character limit), which serves as the Twitter exchange on microfinance. We’ve touched on topics like short messaging technology, environmental sustainability and healthcare within the context of this fascinating tool of economic development.  We even started a Facebook fan page where participants can go and post longer thoughts and relevant articles, and share this discussion with those who may not have entered into the Twittersphere. I’m excited to say that we’re about to take it to a new level.

The goal is to have an active discussion on Twitter regarding a relevant topic within the industry of microfinance.  We’ll follow each discussion with a blog here that will not only recount the exchange, but also encourage participants with a set of challenges between conversations. For example, we’ll encourage those involved to find a new article revolving around an issue we discussed, research an opposing opinion, or come up with the following week’s topic. We want you to let us know what you find, and share it right here on our blog.

We’ll be seeking out panelists for each week as well. So if you know someone who can contribute to a discussion surrounding a relevant topic, please feel free to ping us on Twitter! It’s always exciting to learn about what others are doing in the field, be it peer-to-peer lending, fighting against trafficking, or providing a village with food supply.

We want people to learn more about this incredible work of microfinance. We’ve seen the way it has forever changed our clients’ lives financially, socially and spiritually. So whether you’re a practitioner in the field, or someone who wants to know more about the basics, we encourage you to join us. Every other week, it will be from 12 p.m. to 2 p.m. CST. Just include #mifimon with your Tweets!

Frequent #Mifimon participants on Twitter include: @Accion_USA, @ADKoehler, @AJRenold, @AliceGgo, @amycarolwolff, @bhalchander, @Ellenfrancik, @downeym, @Grameen_Fdn,  @ianscotthaisley, @ibl, @mfinsider, @ogrens, @Optinnow,  @rachelstrohm, @rarenaud, @redstarvip, @socialearth, @zyozyfounder.