Crea%ng(Life(in(the(Indian(

Financial(Sector(

Dave%Wallack%IFMR%Trust%

What%is%Finance?%•  Tapping(the(Resilience(of(the(Whole%%

–  to#manage#sickness,#injury,#the3,#death,#fire,#earthquakes,#weather%

•  Growing(with(the(Whole((

–  access#to#world#class#investments#that#grow#faster#–  access#to#diverse#investments#unaffected#by#local#ups#and#downs%

•  Investment(in(Dreams(

–  entrepreneurship,#educa>on,#travel,#making#a#difference,#preserving#tradi>ons%

•  Moving(money(over(%me(

–  i.e.%making%future%harvest%revenue%available%for%school%fees%due%today%

•  Moving(money(over(space(

–  Transferring%money%safely%from%downtown%London%to%a%village%in%India%

Groups(of(Women(Building(A(Community((

Entrepreneurs(

Star%ng(a(new(

venture(

Increased(Poten%al(Through(Educa%on(

Expanding(Manufacturing(

Capacity(

Local%Employers%Expanding%Product%Line%

Extending((

Working(Capital(to(

Retail(and(Distribu%on((

outlets(so(they(expand((

The(set(of(things(people((

can(access((

%%%%%%

MFI%Industry%

The%System%

MFI% MFI%Insurance%Co.%

Banks%

Funds%

Low%Income%Customers%(1%billion)%

Academics% Regulators%

Mainstream%Customers%(100%million)%

NGO’s%

My%Path%in%AI%

•  ParQcipated%in%my%first%AI%process%in%2009%•  3%months%later%went%to%Nepal%conference%•  8%months%later%shut%down%the%company%for%3%days%and%led%an%AI%Summit%

AI%as%a%organizaQonal%competence%%

•  Throughout%the%organizaQon%there%is%an%“unconscious%competence”%in%basic%AI%skills%–%appreciaQve%interviewing,%finding%themes%in%small%groups,%etc.%

•  We%have%a%strong%second%line%of%facilitators%emerging%

•  AI%is%impacQng%the%way%we%do%business%and%we%are%constantly%experimenQng%with%how%to%bring%AI%as%a%philosophy%into%our%work%

Hope%Microcredit%

TradiQonally%the%investment%process%starts%with%what%is%called%“due%diligence”.%%The%investment%firm%has%a%raQng%tool.%%The%investee%is%rated.%%A%decision%is%made%to%invest%or%not%to%invest.%%In%October%2010%our%team%shi]ed%the%process%and%asked%the%company%and%30%of%its%employees%to%take%two%days%to%tell%us%about%Hope’s%strengths%and%their%vision%for%the%future%using%an%AI%frame.%%

AppreciaQve%Investment%

•  Due(Dilligence(>(Due(Apprecia%on(– A%dialogue%with%the%company%about%their%strengths%

•  Yes/No(>(Condi%ons(For(Investment(

–  Sharing%the%mission/purpose%behind%the%investment%with%the%investee%in%a%way%that%builds%a%trusQng%relaQonship%

•  Don’t(Call(Me,(I’ll(Call(You(>(Feedback(

– A%commitment%to%contribuQng%beyond%the%investment%–  Focus%on%long%term%development%

Saija%Saija%is%a%MFI%working%successfully%in%the%poorest%state%of%India.%%%%Good%people%became%entrenched%in%their%financial%roles%(lender,%equity%holder,%etc.)%and%the%organizaQon%got%stuck.%%Outsiders%were%willing%to%help%Saija,%but%were%scared%away%by%the%internal%chaos.%%%%In%early%2011%we%invited%board%members,%senior%management,%the%entrepreneurs,%and%all%investors%to%do%a%2%day%AI%process%immediately%before%the%board%meeQng.%The%board%would%walk%out%of%the%AI%process%and%immediately%do%the%board%meeQng.%

Board%Summits%

•  Management(v.(Labor(v.(Investors(>((Whole(

– Geang%the%board%to%think%as%a%whole%•  Roles(>(People(–  Shi]ing%beyond%fiduciary%roles%and%tapping%into%people%and%their%values/dreams%

•  Plan(>(Mission(

•  Pacify(the(Board(>(Des%ny(Recorded(into(the(Minutes(

–  Tapping%into%exisQng%mechanisms%to%drive%implementaQon%

IFMR%Capital%Partners%Meet%The%microfinance%industry%went%through%a%crisis%in%2010b11%that%made%it%hard%for%them%to%raise%money.%%Moreover%the%industry%was%demonized%and%its%leaders%were%vilified.%%%%%As%this%crisis%was%passing%in%late%2011,%we%invited%40%micro%finance%CEOs%to%have%a%2%day%dialogue%about%how%MFIs%and%the%MFI%Industry%could%become%so%proacQve%and%heoric%as%companies%and%as%an%industry%that%customers,%partners,%regulators,%and%the%media%would%stand%up%and%protect%the%industry.%

Industry%Summits%

•  Sense(of(Isola%on(>(Community(of(Allies(

•  Compe%%on(>(Shared(Core(

– Common%influences%– Common%mentors%– Common%vision%of%the%future%

•  Reac%ve(>(Proac%ve(–  %From%poliQcal%risks%to%communQy%engagement%– Team%of%Leaders%designing%the%future%

Wealth%Management%In%2008%we%started%a%business%to%transform%the%the%way%that%financial%products%were%offered%to%low%income%households.%%%%Our%innovaQon%was%to%provide%the%kind%of%financial%planning%that%the%richest%of%the%rich%would%get%to%the%poorest%of%the%poor.%%%%We%now%serve%250,000%people%across%200%villages,%and%will%reach%500,000+%across%400%villages%by%April%2013.%%And%that’s%just%the%beginning.%%%

Wealth%Management%Dialogue%

•  Diagnosing(Problems((>(Dialogue(About(

Future(

•  Saving(People(>(Doing(Business(•  People(>(Economies(

– Household,%Village,%Regional%Economy%

•  Outsiders(>(Insiders(

Now%

AI%CRM%Technology%(1/2)%•  Discovery(–  Cataloging%the%Assets%of%the%Household%–%Objects%and%Skills%– Mirroring%Back%How%They%Can%Be%UQlized%as%a%Business%–  Displaying%the%Strengths%of%the%Household%

•  Dream%%%–  ProjecQng%Forward%The%Benefits%of%Entrepreneurship%SimulaQng%Price%and%Mortality%Variance%

–  ProjecQng%Future%Expenses%(Marriage,%Children,%EducaQon)%– Making%the%Dream%Come%Alive%

AI%CRM%Technology%(2/2)%

•  Design(– Financial%Products%as%the%Design%Language%– Use%Products%To%Prototype%the%New%Dream%“Real%Time”%

•  Des%ny(– Financial%Products%only%sold%through%the%planning%process%

– Follow%up%and%planning%constantly%triggered%

KGFS%Brand%Summit%In%May%2012,%we%are%running%1%day%events%in%all%of%our%franchisee%enQQes%with%frontline%employees%and%customers%who%love%our%brand%to%understand%the%posiQve%core%of%the%brand%and%how%it%should%play%into%the%12%key%customer%and%employee%interacQons%that%make%up%our%retail%finance%business.%%Some%of%them%will%come%to%our%headquarters%to%do%a%2%day%process%with%the%design%team%to%use%clay,%fabric,%styrofoam,%popsicle%sQcks,%and%other%art%to%“rapid%prototype”%what%our%branches,%uniforms,%and%other%objects%should%look%like%given%their%dream%of%our%customer%interacQons.%%%

Crop%CulQvaQon%Summit%In%September%2012%we%are%starQng%a%series%of%events%focused%on%designing%a%higher%equilibrium%for%all%parQes%involved%in%the%economic%acQvity%of%the%regions%we%touch.%%The%first%event%is%focused%on%crops,%then%we’ll%move%to%animal%husbandry,%retail,%and%so%on%with%the%intenQon%of%doing%an%event%every%3%months.%%%%%•  Regional(Economic(Development(

–  Supply%chains,%Product%design,%Beker%analyQcs%•  Whole(System(

–  Farmers,%Distributors%(Mandi),%ScienQsts,%Retailers,%Local%Government%Officials,%Banks,%Insurance%Company%

Thank%you%

•  AI%as%a%revoluQonary%act%•  Design%as%leadership%funcQon%along%with%the%execuQve%funcQon%

•  Keeping%it%fun%– For%the%parQcipants%and%the%facilitator%too%