Sander van Damme has written the master thesis ‘Peer to peer Microfinance: the case of Zidisha.org‘ at the Louvain School of Management (Belgium). The 70 page study dives deep into analysis of Zidisha‘s complete loan portfolio (Q4 2009 – Q1 2011). It offers a very comprehensive overview on the p2p microfinance operations of Zidisha, the motivations of lenders and borrowers and developments of the interest rates on the marketplace.
Excerpt from the conclusion:
When looking at the trends in social media, the propagation of the internet and the innovations in mobile banking, we believe this website offers us a glimpse of what the future of aid and banking will look like. Although not necessarily a mainstream tool for everyone on this planet, it will surely become part of many a person’s portfolio. Rather than donating anonymously to some big NGOs who will use the money for projects we do not know about; people want to see their impact and be able to connect with each other across the globe.
Whereas we set out to discover whether peer to peer microfinance was a viable solution in the first place, we came across a business model that in the long run could allow both investors and entrepreneurs to profit from their exchange.