Wokai is starting to get some nice news coverage and the video below is a good introduction to what they are trying to achieve and how the  local microfinance partners actually work.

As the reporter notes China is not really regarded as a poor nation anymore. How could it be with over $2trln in reserves. But outside of the big cities it is a different stories. Access to finance in rural areas is difficult and state finance has been directed towards major projects and city development.

By creating a platform and helping local partners Wokai is actually laying the foundations for community based finance systems in China. This is a great mix of local and gloabl partnership and shows the power of the internet as a platform for building global networks without government interference.

The financial restrictions in China mean that loans through Wokai eventually become donations as the money cannot be repatriated out of the country (for now). However, it is tax deductible being a donation so you get a good bang for your buck.

Another bonus is the opening up of China to the outside world. Given that censorship is still heavy (many networking sites are often blocked) its great to be able to connect with the local population in an open business exchange. This can only help bring China closer to the international community and foster a greater connection between different people.

Because of its closed monetary system, microfinance, using external funds, has been tricky to deliver into China. So you will notice Kiva does not offer loans there as yet. However, Wokai, which I featured a while ago, has started up and is making great progress in delivering finance to those who are unable to access it through traditional banking channels.

It’s always good to see footage from the field and here is a great video interview with Casey Wilson, the co-founder and CEO, shot by GrubbyLens. These personal stories help build the picture and make the connection more real.

Facebook for Farmers from grubbylens on Vimeo.

Great piece in the Herald looking at how things might or could have been different if women had been in charge of the financial system. Harriet Harman has floated the idea in the UK of appointing more women to the boards of banks in order to soften the the testosterone fuelled activities of the current lot.

The macho culture of traders has been studied of many occasions focusing primarily on testosterone. Of course this is a popular fall guy for any over the edge activity that men get themselves fired up on. But research shows this to be true.In fact some researchers go as far as to blame the credit crunch on over pumped up Gordon Gekkos.

There is no doubt that this type of beahviour has a strong causative effect on bubbles and general winning of big bets. It’s a natural high…..who hasn’t felt it when winning a bet at the races, or getting something right in a quiz or a great result in an exam.

The good news is that women are no so affected by these grand illusions preferring to focus on the basics like how much money is in the account and other boring details like that.

We’ve yet to read a bout a female “rogue trader” so maybe Harriet is onto something here. But I don’t think it’s an equality issue, it’s more about skills. Women have skills that we need to use in all areas and money is a pretty crucial one as everyone is now finding out.

Imagine banking for the people……the service of providing money. As opposed to banking…….punting huge amounts of cash in the global casino.

Something tells me they are onto something here. Let’s face it…women have run the household budgets forever…they are the true oikonomists.

More and more women are getting into the money business…….how about the ladies at Wokai? i really like their style and approach. As i have noticed before nearly 80% of my loans on Kiva have been to women. Maybe i figure they are more likley to knuckle down and pay it back

I’m sure there are some great examples of women in this line of work or ones up and coming. I invite you all to nominate your favourites and let the bandwagon roll on.

I mentioned Wokai briefly in the previous post but after closer examination they deserve the full monty. Developed by 2 smart ladies (Courtney McColgan and Casey Wilson) from the US who met studying advanced Chinese at Tsinghua University.

Wokai means “I start” in Chinese and represents the entreprenuerial spirit of microfinance. It looks an amazing undertaking. With over a sixth of the world’s population the potential for domestic economic activity is enormous.

With 300,000,000 living below the poverty line and the Rural Credit Bank only servicing 25% of demand, there is clearly a large market here for small, flexible lending which is the hallmark of microfinance.

It’s another exciting addition to the microfinance and P2P stable of companies. As long term readers will know I believe strongly that P2P financing will replace traditonal banking systems within 20 years.

Who knows it may be sooner with organisations like Wokai springing forth.