Session ii md & ceo - adfiap- botswana visit - kishor piraji kharat
1. 1
DFIs and the Agenda for
Development:
Expanding Possibilities
November 03, 2016
2. Presentation Outline
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Role of DFIs
Current trends in Development Finance
Challenges faced
Opportunities
Remaining sustainable in the age of
disruption
3. Role of DFIs
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DFIs across countries set up as public or quasi-public financial
intermediaries with the principal objective of:
identifying and filling the gaps in a country’s financial sector
and capital markets; essentially addressing market
inefficiencies
providing dedicated long-term finance for activities or sectors
crucial for overall development of the economy
providing technical/ managerial expertise to new projects as
well as for expansion/ modernization of existing projects.
4. 4
Role of DFIs
DFIs have been playing a key role in:
promoting industrial and infrastructure development across
countries besides developing financial architecture in some
countries.
building an institutional structure for entrepreneurship
development, credit delivery and capital market
development
investing in under-served projects and under-capitalized
sectors to ensure sustainable and balanced growth and
development.
5. 5
Current trends in Development Finance
The role of DFIs has expanded over the years from
Development Financing to Financing
Development.
Many DFIs have now embarked on the path of
universal banking.
However, DFIs continue to fulfill its policy
mandate of nation-building in a financially
sustainable manner.
7. 7
Challenges faced
Technological innovations – digital disruptions, crypto
currencies etc.
Emerging competitors – Commercial banks/ FinTech/ NBFCS/
Payment Banks etc.
Shifts in consumer behavior - rising customer expectations
Changing regulatory and legal framework – changes in the
macro prudential approach, capital adequacy requirements etc.
Changes on a macro-economic level
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Opportunities
Transforming the organization's business strategy to
stay relevant in the age of disruption
Embracing technological developments in the
organization structure
Specifically in a developing country context, pursuing
the goal of financial inclusion by ensuring last mile
connectivity
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Opportunities
Enabling entrepreneurial development,
skill building and innovation by
assisting government schemes like
Make in India, Start-up India, Stand Up
India, Digital India, etc.
Product and service innovation catering
to the shifting consumer demographics
and rising customer expectations
Incorporating sustainability and
business responsibility as core
principles of functioning
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Remaining sustainable in the age of disruption
Staying relevant by:
Being nimble footed and innovative
Adapting to the latest technology in the arena of banking
and finance – making FinTech as the vital cog in driving
the business model
Expanding the Bank’s footprint and bringing superior
banking services to the masses, ensuring accessibility
and convenience
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Remaining sustainable in the age of disruption
Developing internal competencies and external
relationships:
Partnering various financial institutions and industry bodies
within the country as well as outside for promoting cross-border
investment and financing.
Optimizing governance structure
Enhancing internal efficiency by focusing on capacity-building
Nurturing a dynamic work environment
Robust risk management system
14. 14
Remaining sustainable in the age of disruption
Invest in sustainable and profitable businesses by:
Sustainable Financing - growing green debt capital market
by issuing green bonds and encouraging renewable and
clean energy financing
Adhering to the Environmental,
Social and Governance (ESG)
standards while lending to
minimize adverse impact on the
environment and society at large.
15. Remaining sustainable in the age of disruption
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Re-aligning business models with the changing needs of the
global economy while:
Pursuing a customer-focused strategy of sustained innovation
Raising capital to support the transaction costs of new
products and services.
Continuing to invest in medium and long term projects for
overall infrastructure development and higher social returns.
Supporting government initiatives, assisting in capital
formation thereby contributing to the nation’s developmental
goals.
16. Innovate or Perish
The organizations that will survive today’s economic
environment and succeed in tomorrow’s are those who will
continuously innovate.
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Transforming
DFIs
Transforming
Economies
Transforming
Lives