Jul 2, 2014 KV Kiva HQ
By Cynthia McMurry
Kiva Launches Pilot Study with IPA and Google.org
We’re thrilled to announce an innovative partnership between Kiva Labs, Innovations for Poverty Action (IPA), Google.org and two Kiva Field Partners to evaluate the effect of product design changes on the welfare of micro-entrepreneurs and on the viability of microfinance institutions.
 
Through this study, Kiva aims to push the boundaries of microfinance by helping its MFI partners provide the poor with more affordable, more flexible credit. Simultaneously, IPA will conduct a randomized controlled trial (RCT) to evaluate the real impact of these loan products on borrowers’ lives. Most loan products currently available to the poor tend to be rigidly structured, with fixed payment dates that don’t always align with borrowers’ diverse business types, cash flows or investment needs. This initiative will evaluate the impact of more flexible and lower interest rate loan products on the types of investments made by micro-entrepreneurs and their subsequent economic outcomes. Borrowers who receive flexible loans will have the option to skip several monthly payments of their choosing, which could allow them to make higher-risk, higher-reward investments. 
A borrower from Kiva Field Partner FMSD
 
Kiva Field Partners Emprender (Bolivia) and Fundación Mario Santo Domingo (Colombia) have elected to participate in the initial pilot of this study, and have already conducted extensive market evaluations and promotion with potential borrowers. Over the next couple of months, these new loans will appear on Kiva for our lenders to fund! Because these products are being tested for the first time and are potentially riskier than a standard microfinance loan, Kiva’s 0% interest, risk-tolerant funding is particularly important.
 
We’re excited to see this project take off, and look forward to sharing results with our lenders once the study is complete!
 
 

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Cynthia is responsible for managing Kiva's team of Portfolio Managers and Field Support Specialists in Latin America and the Caribbean, and for overseeing the regional implementation of Kiva's strategy from both a risk and social performance perspective. Cynthia has worn many hats at Kiva: she started in 2008 as a Spanish translator and Kiva Fellow, completing fellowship placements with four MFI field partners in Peru, Bolivia and Ecuador. She returned to Peru for another year and a half to serve as Kiva's first Field Support Specialist for South America, then moved to San Francisco to work as the Portfolio Manager for North and Central America before assuming her current position in 2012. 
 
Originally from Minneapolis, Cynthia has a B.A. in International Relations and Spanish from Tufts University. She is fluent in Spanish, conversational in Portuguese and can say "See you tomorrow!" in Quechua. 

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