Exploring Consumer's Needs and Motivations in Online Social Lending for Development

This study is the first in exploring the needs and motivations of those who participate in the social phenomenon of Online Social Lending for Development (OSL4D). OSL4D represents a new form of charity support behavior that has raised numerous important theoretical issues about the evolving nature of charitable giving and the motivation of its participants. A model of lending behavior is proposed. Using data from Kiva.org, the authors consider the different theoretical needs and motivations to participate in social lending and, through content analysis of 1,283 consumer statements from the members of the Team Canada lending team about the reason they lend, conclude that OSL4D consumers are principally intrinsically motivated to make a small difference in the lives of the working poor. Managerial conclusions are offered as well as ideas for future research.