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Home » Shivani Siroya: A Smart Loan for People With No Credit History (Full Transcript)

Shivani Siroya: A Smart Loan for People With No Credit History (Full Transcript)

Shivani Siroya, CEO & Founder of InVenture, Presents: A Smart Loan for People With No Credit History at TED Conference (Transcript)

Listen to the MP3 Audio here: A smart new business loan for people with no credit by Shivani Siroya at TED conference

TRANSCRIPT: 

How much do you need to know about a person before you’d feel comfortable making a loan?

Suppose you wanted to lend $1,000 to the person sitting two rows behind you. What would you need to know about that person before you’d feel comfortable? My mom came to the US from India in her late thirties. She’s a doctor in Brooklyn, and she often lets friends and neighbors come to see her for health services, whether they can pay right away or not.

I remember running into her patients with her at the grocery store or on the sidewalk, and sometimes they would come and pay her right on the spot for previous appointments. She would thank them, and ask them about their families and their health. She gave them credit because she trusted them.

Most of us are like my mom. We would give credit to someone that we know or that we live next to. But most of us are probably not going to lend to a stranger unless we know a little something about them. Banks, credit card companies and other financial institutions don’t know us on a personal level, but they do have a way of trusting us, and that’s through our credit scores.

Our credit scores have been created through an aggregation and analysis of our public consumer credit data. And because of them, we have pretty much easy access to all of the goods and services that we need, from getting electricity to buying a home, or taking a risk and starting a business.

But there are 2.5 billion people around the world that don’t have a credit score. That’s a third of the world’s population. They don’t have a score because there are no formal public records on them — no bank accounts, no credit histories and no social security numbers. And because they don’t have a score, they don’t have access to the credit or financial products that can improve their lives. They are not trusted.

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