Presentation used at the #2012waic Conference - Ghent, Belgium

1. Crea%ng(Life(in(the(Indian(
Financial(Sector(
Dave%Wallack%
IFMR%Trust%

2. 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%

3. Groups(of(Women(Building(A(Community((

4. Entrepreneurs(
Star%ng(a(new(
venture(

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

6. Expanding(Manufacturing(
Capacity(

7. Local%Employers%
Expanding%Product%Line%

8. Extending((
Working(Capital(to(
Retail(and(Distribu%on((
outlets(so(they(expand((
The(set(of(things(people((
can(access((

9. The%System%
Academics% Regulators%
%
Insurance% %
MFI% % MFI%
Co.%
Banks% % NGO’s%
%
Funds% %
MFI%Industry%
Mainstream%Customers% Low%Income%Customers%
(100%million)% (1%billion)%

10. 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%

11. 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%

12. 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.%%

13. 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%

14. 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.%

15. 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%

16. 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.%

17. 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%

18. 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.%%%

19. Wealth%Management%Dialogue%
• Diagnosing(Problems((>(Dialogue(About(
Future(
• Saving(People(>(Doing(Business(
• People(>(Economies(
– Household,%Village,%Regional%Economy%
• Outsiders(>(Insiders(

24. Now%

25. 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%

26. 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%

27. 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.%%%

28. 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%

29. 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%