A low-tech idea meets fintech Seattle entrepreneur adapts savings groups to the digital age Jeremy Showalter has long been intrigued by the power of people pooling funds together in savings groups. Tens of millions of people in more than 70 countries take part in these groups. They have long been an important development tool promoted by charities such as Hope International and MEDA. Showalter saw firsthand how saving together could be helpful. Several generations of his family set up a group through an Indiana credit union in the early 2000s. The group lasted Jeremy Showalter for more than a decade and “was incredibly helpful for of information storage. all (of) our lives,” he recalls. Showalter and two friends have In 2008, he began talking with named their venture 3Locks. The friends about starting a company to name refers to the three locks that promote such groups. He pitched are used on savings boxes in village the concept at a MEDA convention, savings and loans programs. Showalbut the idea never got traction. ter, a MEDA board member, saw Showalter is a tech industry these while visiting the Jordan Valveteran who worked with Microsoft ley Links MEDA project in early 2019. in a variety of roles for more Weave savings is the product than 13 years. He became CEO 3Locks is developing to support of Vietnam-based Pique, a firm savings groups. that provides artificial intelligence The Weave name could be powered product and content seen as a reference to Ecclesiastes recommendations, in late 2019. 4:12. That Bible passage states Pique, which grew to 25 that “a cord of three strands is not million users, was acquired by easily broken.” Vietnamese e-wallet company Showalter admits that this MoMo in June. Biblical principle underlines what Since Showalter first imagined he hopes Weave can help do. launching a business around But he points to Isaiah 61, a savings groups, advances in section of scripture that Jesus is technology have made his idea quoted reading in the synagogue more feasible. Smartphones now (in Luke 4). The passage predicts allow widespread connections. good news for the oppressed. These Cloud computing reduces the cost people will rebuild and renew their 15
situations, he noted. Savings groups are about relational capital, what they enable for the communities that form them, he said. He hopes savings groups can reduce the economic oppression that exists through payday loans and title loans (where people get cash advances by putting their car or house up as collateral). These loans generate $12 billion in fees annually in the US. Human isolation, lack of trust, pride, and shame lead people to turn to these expensive lenders, he said. Weave is not about fancy ways to move money. The product is just a method of enabling groups to form, regardless of where members are located, he said. Like other fintech firms, it will not actually handle money, but will partner with financial institutions “to enable services others haven’t done well.” A business model for Weave arrived last year. Andrew Cho, one of Showalter’s co-founders, was looking for a way to support his employees. The product will make money in the business-to-business marketplace, with a “freemium” version available for individuals. Showalter thinks it will be useful for non-profits and faithbased communities as well. “Hopefully we’ve seen in the past couple of years (that) more relationships is what we need.” Weave will have a beta (test) product available this fall, he said.
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The Marketplace September October 2021
