Free Bank Accounts

[Guest]

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[glasgowbry]

HI all

Here's an idea ...................

How about free bank accounts to Kiva borrowers who take out a loan from the MFi

That way the borrower can repay back the money via telebanking/internet/Giro

If the borrower has a bank account with the MFI (assuming they offer banking services) then that would mean less work for the MFi as the repayment could be made automatically.

Of course MFi's/banks generally charge for banking in their countries , but how about we also factor 1 years free banking into a loan ?

thoughts

[Dagfinn]

If to have a new idea the obvious thing to use is the mobile (cellphone) - solutionsn exist and it can be nicely tied into increased productivity for the MFI's as well as Kiva

-- Dagfinn A

[wthepoo]

I think Dagfinn is right - because having a bank account doesn't really make things easier as Kiva borrower's clients won't usually pay by check or even wire transfer... so the borrowers would still have to go to the MFI in regular intervals to deposit funds the MFI can then use to deduct the repayments. Further, the regular contact with loan officers is - as far as I know - part of the microfinance concept and provides ample opportunity for counseling and guidance.

Also, several MFIs already "offer" saving accounts to their clients, anyway, in most cases there is even an obligation for MFIs' clients to save a certain amount every month/week.

Anyway - cellphone solutions do exist and are in parts employed or considered by Kiva's Field Partners already: see the very interesting blog post by Kiva Fellow Brett Dobbs http://fellowsblog.kiva.org/2009/05/14/m-banking/

Best wishes,
Wolfgang.