New "Your Impact" page

Discussion in 'Announcements' started by Julia Kurnia, May 4, 2016.

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  1. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    We recently redesigned the lending account "Your Loans" page, and renamed it "Your Impact." The page continues to list all loans funded by a lender along with key impact metrics, including the number and aggregate value of loans a lender has made. The ability to receive advance repayments on a per-loan basis by clicking a "Receive early repayment" button is unchanged.

    Unlike the "Your Loans" page, the "Your Impact" page does not display financial gains and losses, or the estimated value of loans outstanding. The most important reason for this is that Zidisha is a platform for philanthropy, not for financial investments. Even though this has always been clearly stated in our terms of use and informational pages of our website, we were concerned that displaying gains, losses, and portfolio value encourage people to perceive Zidisha as an investing platform. Our recent growth makes it increasingly important to ensure regulators do not interpret Zidisha as offering financial investments (something we are not licensed or qualified to do). Just as importantly, it's our responsibility to do our utmost to ensure lenders do not perceive Zidisha loans as financial assets akin to those offered by investment brokers. We do not want anyone to lend out more than they can afford to lose.

    Until 2015, lenders could choose to earn interest on Zidisha loans, and displaying gains and losses made sense in that it helped lenders estimate the interest rates that would be needed to offset losses. Now that we offer the ability to receive early repayments to offset losses in lieu of interest, displaying gains and losses no longer performs this function.

    Finally, we were concerned that a focus on financial metrics made lending less attractive, especially for new lenders. Many of them told us that what made lending fun was the interaction with the entrepreneurs and the social impact they were making, rather than analyzing financial gains and losses. We aimed to support this in that the new design focuses on less on the story of the lender's money, and more on the stories of the entrepreneurs.
     
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