Financial Inclusion: Microfinance to Mainstream

Every year I try to do one hike in the Himalayas. It takes me back to my roots in Dehra Dun, inspires, energises and engenders hope. So in September 2008, when we did the gruelling 14km uphill trek to an elevation of 3584m (Gaurikund to Kedarnath), as usual, the mountains were unimaginably majestic but this year I saw something unexpected- man-made but equally mesmerising for me. Beyond the hike trail, on the dirt path to the last village on the India border, there flew a banner that read something like "Proud to reach 100% financial inclusion - State Bank of India". I wish I had had the presence of mind to take a picture (too tired is my excuse). Sure it is an ad. But look at the lofty goal. In a country largely supported by a rural population, where less than 50% bank and even fewer have access to credit, to reach the remotest corner of India with a goal of 100% financial inclusion is nothing short of ambitious. And indeed, all the huts I saw looked clean, had roofs and there were tiny, immaculate gardens with cabbage, cauliflower growing; chickens running around and nobody looked cold or hungry. For developing economies, microfinance (and micro-franchising) must become mainstream. So I am pleased to be invited to the Microfinance India Summit to be held October 26-28, 2009 at Taj Palace Hotel, New Delhi. The theme this year is "Doing Good and Doing Well: The need for balance". The summit will look at both the trade-offs and points of convergence as the sector grapples to balance between building the social as well as the financial capital; scale and soul; social performance measurement; client protection; products and services that the poor need; and issues linked to last-mile connectivity, among others. I also look forward to interviewing ordinary and extraordinary folks I meet at the conference - so send me your questions and I'll report back on what I hear - right here.

An Open Mind: Key to Successful Cross Cultural Communications

Without a map Columbus probably would not have "discovered" America. But a map mislead him into thinking he had discovered India. So I love maps; but I realize that they can mislead. Phantoms in the Brain, page 39- "When asked what his biological studies had taught him about God, Haldane replied- the creator if he exists must have an inordinate fondness for beetles for there are more species of beetles than any other group of living creatures. By the same token, a neurologist must conclude that God is a cartographer. He must have an inordinate fondness for maps for everywhere you look in the brain, maps abound." by V.S. Ramachandran, Professor at UC San Diego. The good thing about a brain map (unlike a physical map) is that every interaction updates our brain map. I talked about this at the recent "Successful Cross Cultural Communications" event hosted by FountainBleu in the context of understanding and overcoming stereotype biases. The human brain creates maps to classify and simplify the life around us so we can function 9-5. Stereotypes in our heads are just like maps- useful but possibly misleading. If we can accept this, we can actually enlist what we already think we know about another culture (when one thinks about ‘cross-cultural’ there’s an assumption that it’s about people from different backgrounds, but it’s much broader than that. It encompasses differences in geography, languages, generations, companies, functional areas, regions and industries) simply be prepared to update your knowledge - add to or create a new map.
And the old cliches about keeping an "open mind" or "active listening" or "suspend judgement" that leave you wondering what action to take, start making sense.

The New Face of Entrepreneurship

On Saturday July 10th I had the opportunity to be on the PAN-IIT panel "Social Entrepreneurs: The New Breed". My objective with this panel was to create mindshare for this emerging area of entrepreneurship - so it was really gratifying to see how the large hall filled up and the audience created a huge positive energy -bringing their passion for "doing well by doing good" to the Q&A part. In addition to the panel I hosted lunch tables on two days. Bottom line is I met more enthusiastic, dedicated folks in these two days than I have in any other two days in my whole life! Many people shared their stories with me. So what did I learn? I learned that it is hard to be a social entrepreneur - it involves risk-taking, passion to persist in the face of obstacles and yes ability to manage finances -Best of luck and kudos for trying! You are all winners.