An Introduction to Wokai

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Agenda What is Wokai? Why China? What is Microfinance? Microfinance in China Wokai’s Operating Model Key Success Factors Challenges & O pportunities Looking at the Future

What is Wokai?:

What is Wokai? Non-profit, microfinance organization Founded in 2007 by Casey Wilson and Courtney McColgan after studying together at Tsinghua University Donors contribute microloans to people in rural China Online platform similar to

Loan Communities:

Loan Communities Chifeng, Inner Mongolia Yilong, Sichuan Province Beijing, HQ

Why China?:

Why China? Widening wealth gaps between rural & urban populations Decreasing donations Culture of saving Total loan portfolio in China is 1/2 of Bangladesh while being 10x the size

What is Microfinance?:

What is Microfinance? 3 principles: Group liability contracts Recipients usually women Higher interest rates Services: Microloans, credit insurance, savings, remittances 1976 – Mohammad Yunus in Bangladesh 2004 – $30 billion of $300 billion demand being met

Microfinance in China:

Microfinance in China 1993 Chinese Academy of Social Sciences introduces microfinance in China 1995 UNDP starts international microfinance project 1999-2004 People’s Bank of China (PBC) starts Rural Credit Cooperatives (RCCs) 2008 PBC grants legal status to privately-held MFIs

Microfinance in China:

Microfinance in China 80 million 270 million

Microfinance in China:

Microfinance in China

Choosing a Borrower:

Choosing a Borrower

Where does the money go?:

Where does the money go? Field Partners Rural Entrepreneur 1 Donors Rural Entrepreneur 2 Loan given to rural entrepreneur Loan repaid Loan recycled to new entrepreneur Loan repaid Loan recycled to Rural Entrepreneur 3

Organizational Chart:

Organizational Chart Founders Circle

Key Success Factors:

Key Success Factors Group lending model Lending to Women Higher Interest Rates Relationship to Chinese government High quality field partners Volunteer chapters model

Challenges & Opportunities:

Challenges & Opportunities Prohibitive funding regulations for MFIs Unclear policies regarding NGO MFIs Difficulty in obtaining public fundraising licenses Cultural shift towards philanthropy Partnership with local NGOs

Looking at the Future:

Looking at the Future Goals by end of 2011: Access Chinese contributors Find two new field partners $1 million in loan capital Financial sustainability without contributions of Founders Circle Grow from 2,100 to 10,000 contributors to operations

Slide 18:

Thank You 谢谢

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