World We Dare to Imagine - Pitch
Micro loans. Sounds pretty simple to you? But it's not that simple for some people. As I've told you before, I come from a Russia, but to be more specific a small town of Ulan-Ude. The city that has a population of roughly half a million people and is located in cold Southern Siberia on the border of Mongolia. To put into perspective, life for a typical resident of Ulan-Ude goes in a different manner than for someone from Los Angeles. It's not just the deep Russian winters that I'm talking about, but the financial abilities of the big proportion of my city's residents.
The average monthly wage in my town falls around $250 range. Yet it is not rare by any means to see someone with one of the latest iPhones, which, in modern Russia, shows that you know the current fashion trends. You would ask me how is that possible that someone with a very moderate monthly income has one of the latest Apple products?
Well, there are two usual explanations. In the first case, (let's say the person's name is Vladimir) Vladimir purchases a two-year plan on a new phone during which he needs to put down relatively small monthly payments. In the second case, Vladimir goes to a micro loan institution down the street to take a loan of $1,000 for 12 months. In the both cases, we have a happy iPhone user, who is able to get his hands on a new model. On the other hand, both of these cases lead are the result of Vladimir not foreseeing the future payments and carefully calculating the interest rates.
In the first case, Vladimir does not thoroughly read the contract on his new phone. His contract states state that he needs to repay a certain amount of money every month with a steep and increasing interest rate. Besides that, it is also be filled with financial jargons that a typical guy like Vladimir would know. Hence, the phone retailer enjoys the extra money. In the second case, Vladimir gets a loan with back-breaking interest rates from a micro loan institution. In the end, the institution enjoys the profits that it gets from clueless customers like Vladimir.
These are the cases that take place in my hometown quite often, where clueless people sign contracts or take out loans not fully understanding the financial side of it. And I don't blame them. I am here in the U.S. receiving top education at a prestigious university. Some of my hometown peers or neighbors are not so lucky.
I want to start an financial organization in my hometown of Ulan-Ude with which my team will be able to teach the residents of my hometown financial literacy skills. I find it absolutely necessary to help them understand what they sign, be able to calculate future monthly payments and ultimately make their financial decisions with a long-term vision that will benefit their finances. My vision is to first assemble a team of highly motivated and energetic people, and present workshops on basic finance help. The second stage after that will be to build a permanent office with full-time staff that presents itself as a financial consultation company.
With the education and experience that I've gained in the U.S. over the past 6 years, I am sure I have the right resources to start a company that can guide the residents of my town on a more stable financial track. Additionally, I am also in contact with some of the professors at the USC Marshall School of Business in the areas of entrepreneurship and finance. I can reach out to these highly experienced individuals for guidance and advice.
The average monthly wage in my town falls around $250 range. Yet it is not rare by any means to see someone with one of the latest iPhones, which, in modern Russia, shows that you know the current fashion trends. You would ask me how is that possible that someone with a very moderate monthly income has one of the latest Apple products?
Well, there are two usual explanations. In the first case, (let's say the person's name is Vladimir) Vladimir purchases a two-year plan on a new phone during which he needs to put down relatively small monthly payments. In the second case, Vladimir goes to a micro loan institution down the street to take a loan of $1,000 for 12 months. In the both cases, we have a happy iPhone user, who is able to get his hands on a new model. On the other hand, both of these cases lead are the result of Vladimir not foreseeing the future payments and carefully calculating the interest rates.
In the first case, Vladimir does not thoroughly read the contract on his new phone. His contract states state that he needs to repay a certain amount of money every month with a steep and increasing interest rate. Besides that, it is also be filled with financial jargons that a typical guy like Vladimir would know. Hence, the phone retailer enjoys the extra money. In the second case, Vladimir gets a loan with back-breaking interest rates from a micro loan institution. In the end, the institution enjoys the profits that it gets from clueless customers like Vladimir.
These are the cases that take place in my hometown quite often, where clueless people sign contracts or take out loans not fully understanding the financial side of it. And I don't blame them. I am here in the U.S. receiving top education at a prestigious university. Some of my hometown peers or neighbors are not so lucky.
I want to start an financial organization in my hometown of Ulan-Ude with which my team will be able to teach the residents of my hometown financial literacy skills. I find it absolutely necessary to help them understand what they sign, be able to calculate future monthly payments and ultimately make their financial decisions with a long-term vision that will benefit their finances. My vision is to first assemble a team of highly motivated and energetic people, and present workshops on basic finance help. The second stage after that will be to build a permanent office with full-time staff that presents itself as a financial consultation company.
With the education and experience that I've gained in the U.S. over the past 6 years, I am sure I have the right resources to start a company that can guide the residents of my town on a more stable financial track. Additionally, I am also in contact with some of the professors at the USC Marshall School of Business in the areas of entrepreneurship and finance. I can reach out to these highly experienced individuals for guidance and advice.
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