DFIs and the Agenda for Development: Expanding Possibilities. November 03, 2016

Transcription

1 DFIs and the Agenda for Development: Expanding Possibilities November 03,

2 Presentation Outline 2

3 Role of DFIs 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. 3

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. 4

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. 5

6 Challenges Faced 6

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 7

8 Opportunities 8

9 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 9

10 Opportunities Enabling entrepreneurial development, skill building 10

11 Remaining sustainable in the age of disruption 11

12 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 12

13 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 capacitybuilding Nurturing a dynamic work environment 13

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. 14

15 Remaining sustainable in the age of disruption 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. 15

16 Innovate or Perish The organizations that will survive today s economic environment and succeed in tomorrow s are those who will continuously innovate. 16

17 Thank You