The idea is to build an online community where the underserved could request to borrow money from the community. The potential borrower would make their case for their needs, offer any security/collateral, and request the basic terms of their loan. Each potential borrower would have a basic profile that would include details such as the borrowers credit score, history, community activity, etc.
Potential investors could review borrowing requests and profiles, and present offers (in part or whole for the requested loan amount). The potential borrower can review the loan offers and select or reject the terms. Once the borrower has accepted enough offers to meet their requested loan amount, the borrower would sign the loan documents and secure any collateral (this infrastructure would be provided by the contributing CUs who would collectively establish and maintain this community). Once the documents have been signed each "investor" would have their respective contribution ACH'd and the lump sum would be given to the borrower.
As payments are made, the principal and interest would be divided among all investors based upon their respective contribution to the total amount (providing an ongoing income stream). Collection activity could be provided by the CU Collective and the associated administrative costs would be baked into the service fee that would be charged on each loan (potentially in the interest rate, or pehaps splity between the borrower and investor).
The possibilities for this community are endless, incorporating educational resources and "badges" that borrowers could earn to further signify their creditworthiness, blogs and tips boards, rebates from the CU Collective to borrowers/investors based on satisfactory transactions (ie. on time payments, etc, thus not requiring additional resources from the CU Collective for collections, etc).
To truly reach the underserved we would seek to expand the reach of this program beyond the internet, perhaps partnering with local merchants, banks, credit unions, agencies in under served areas to provide access to these programs for those who may not have computers or internet access.
Ultimately this program would provide potentially high yield investments for individuals who are interested in better returns on their money, new avenues to borrow for individuals who may not have any other options, and a new revenue stream for credit unions who would maintain this program.