“Public Goods approach to Innovation in Financial Inclusion”

1. “Public Goods approach to Innovation in Financial Inclusion” Presenting FMO, the Dutch Development Bank • The double bottom lines of a Development Bank – aiming for Financial Returns and Social Returns • FMO finances many private, commercial activities in Developing Countries • working where Markets Fail, Products Fail, Structures Fail, etc. • looking for Daring Entrepreneurs and Innovative Ideas Public Goods and Market Failures. • Public Goods Financial Inclusion and Financial Exclusion • Market Failure Product Failures, Structure Failures, Incentive Failures, Experience Failures, etc. The biggest current market failure you see on a global level • 9 billion people living on this one planet in 2050 Think big. Start small.

2. “Public Goods approach to Innovation in Financial Inclusion” FMO finances • more established parties still in need of appropriate funding (Corporates and Financial Intermediaries). • and less established parties or ventures with high risk / innovative plans (good potential to become financially sustainable) with very good potential to create social impact : innovations, showcases, potential for upscaling, etc. • and FMO provides funding for technical assistance • Within FMO I look after the Micro and SME end of the markets (with a portfolio of almost EUR 500 mln) and our funding for Capacity Development (a few mln EUR per year). • Examples range from the First leasing company in country X, a new SME guarantee fund in country Y, the first investment in Zimbabwe, local currency loans in many countries, convertible debt, even convertible grants, future equity for NGO’s that strive to become an NBFI, interest reduction when certain social targets have been achieved, support for Board Seats, training for MFI employees, etc, etc. FMO is not alone • We collaborate with many other financiers, development banks, commercial banks, etc. • Our role, our added value is crucial. Our aim is to convene others.

3. “Public Goods approach to Innovation in Financial Inclusion” Financial and Social returns enhance each other • Find the balance and positive connection between the two • Dow Jones Sustainability Index (KLM, DSM, Philips, PostNL and Unilever ) • clear positive link between healthy financial and healthy social returns Important to better measure and show the social returns, the outcomes and impact of our work • We need our partners in the field • better choices based on the non-financials as well • Avoid the Harm and target the Good : many Profits – many People – just One Planet Only jointly we can create more Public Good and less Market Failure ! Frederik J. van den Bosch (Manager Micro & Small Enterprise Finance at FMO) f.van.den.bosch@fmo.nl +31.70.314.9876 www.fmo.nl