Delegated monitoring in crowdfunded microfinance: evidence from Kiva

John P. Berns, Abu Zafar M. Shahriar, Luisa A. Unda

Research output: Contribution to journalArticleResearchpeer-review

7 Citations (Scopus)


We study the role of delegated monitoring in crowdfunded microfinance. We use data from Kiva, a crowdfunding platform, where crowds lend to borrowers through microfinance institutions (MFIs) instead of lending directly. These MFIs monitor debt contracts on behalf of crowds. We find that borrowers who are more intensely monitored by MFIs are more likely to repay crowdfunded loans on time. Monitoring is particularly important in reducing repayment problems of individual loans rather than group-based loans. Monitoring has a stronger impact in less competitive lending markets. We also find that when lending to borrowers, crowds are attentive to the loan-administering MFI's ability to monitor loans.

Original languageEnglish
Article number101864
Number of pages21
JournalJournal of Corporate Finance
Publication statusPublished - Feb 2021


  • Crowdfunding
  • Delegated monitoring
  • Kiva
  • Microfinance

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