Microfinance Risk Specialist Publishes Positive Analysis of Zidisha's Loan Portfolio Performance

Zidisha is making history by being the world's first direct peer-to-peer microlending platform. Daniel Rozas, a microfinance risk specialist, has just published an analysis of Zidisha's loan portfolio performance to date.

The analysis shows that Zidisha's portfolio's performance compares favorably with that of the microfinance industry as a whole. Zidisha is able to achieve similar repayment rates, at a much lower cost to borrowers than has ever been possible, by leveraging mobile and internet technology to leapfrog over the constraints of traditional bricks-and mortar- microfinance operations.

The article underlines Zidisha's low interest rates of 7-8% compared to local prevailing rates of 35% for similar sized loans. Zidisha makes these low interest rates possible by bypassing local intermediaries and capitalizing on new technology.

ZIdisha's success raises questions about traditional microfinance models. Microfinance specialist Daniel Rozas asks, "how critical are the armies of loan officers employed by MFIs" and "are there additional ways to leverage credit bureau data?" As Zidisha's portfolio grows, it demonstrates a new model of microlending and brings innovative and efficient methods to the field.

This release is also timed to announce the start of Zidisha's operations in Burkina Faso and Indonesia. The first borrower from Burkina Faso is live on Zidisha's web-site today.

Please view the analysis at http://financialaccess.org/node/3765/.