In a palatial bungalow bordering the east side of Central Park, Digital Partners-a Seattle-based non-profit venture-launched its New York chapter recently. The organisation aims to reduce poverty and believes the way to do it is by bridging the digital divide.

"The concept of DP was born from the idea that there are a lot of desis, especially mid-rung, in the US who want to give back to their country. Most of these are people who came out of India in the 1970s and '80s," says Akhtar Badshah, executive director, DP.

Its pet project in India is a microfinance programme called Swayam Krishi Sangam Foundation (SKs) in Andhra Pradesh which it is funding in part. It's also setting up technology information centres with Self-Employed Women's Association (SEWA) in 11 districts of Gujarat, promoting electronic literacy in rural Pune (e-Cube) and collaborating with Seattle-based World Affairs Council to bring technology to the classrooms in India and other developing countries (Global Classmates Initiative).

Initially, the SKs programme was a low-scale project restricted by cumbersome paperwork and restrained by difficult topography. But now, with Vikram Akola, the CEO of the programme, proposing the use of smart cards operated from a palm-pilot prototype, the project is set to take off in a big way. The plastic card would enable both borrowers and lenders to track their loan activity, thereby eliminating paperwork. It would also allow microfinance programmes to reach additional clients with little increase in costs, thus allowing each branch to serve more borrowers and to become financially sustainable faster.

Powered by its desi resources, DP was the technology and business consultant. "The field trials with the smart card are on and we should be in a position soon to make it the standard for all microfinance initiatives," says Badshah.

The business plan is among eight shortlisted contendors for the National Social Venture award instituted through a collaboration between the Haas School of Business at the University of California, Berkeley, the Columbia Business School and the Goldman Sachs Foundation.

Market-based solutions are a means of empowering the poor as well as providing fresh markets to MNCs. A win-win situation.