In conversation with Jay Mukhey, Global ESG Director at Finastra
Coming together is beginning,– Henry Ford
Staying together is progress,
and working together is success.
We at Rang De, cannot agree more with Mr Ford. Rang De would not have existed without collaboration with our Impact Partners, Social Investors and Corporates. We have partnered with several corporations along the way and have successfully implemented projects together. And one corporation that we take much delight in partnering with is Finastra. Our partnership with Finastra goes a long way.
They have partnered with and deployed their ESG funds towards our flagship financial literacy programme ‘ Swabhimaan’.
We caught up with Jay Mukhey, the Global ESG Director at Finastra to talk about what the future holds for our partnership and how we can learn and emulate some of their global success stories in India.
Here are the excerpts from that interview.
We start off the zoom call by asking Jay about the core values that Finastra operates on and how those core values are then tied back to the CSR initiatives?
Jay: ‘Finastra is a global fintech company, so we make software for banks and other financial institutions to help run their businesses and their operations. We have a very progressive culture. We believe that the future of finance is open. And we believe that every single person has a right to have affordable access to financial services and also financial literacy, which is why we’re such a strong supporter of Rang De’.
Jay adds that within the company their core values are what they call ‘collaborate to innovate’. So, there is a big focus on how we enable collaboration across our different functions and teams. At Finastra, the teams work together to understand the challenges both inside the company and outside the company and create innovative solutions to try and solve them. And that is something that is really spread through to their CSR strategy.
Finastra’s focus areas for ESG
Jay gives us an overview on the 3 focus areas for ESG at Finastra.
Financial inclusion is where we firmly believe in providing access to financial literacy, affordable access to financial services.
The second is Social Innovation and that is where we invest in youth particularly social mobility.
The last is our Environment Mission, how do we become a carbon-neutral business by 2030.
‘So, there are things that Finastra has in terms of resources and funding etcetera and we can allocate these things but we know for change to happen and transformation to happen we need to collaborate with our external partners like Rang De and various other charities NGOs and partners across the globe. So this is a very brief summary of the company and the CSR strategy’. Jay adds.
The Trust Machine- A ESG initiative that Finastra launched in Kenya, that ties all the three above mentioned focal points together. Jay gives us a glimpse into the project.
The Trust Machine was an ESG initiative that started about a year and a half ago. within Finastra. Finastra is really playing the role of ecosystem orchestrator in this. So, we are bringing together the different entities that on their own are not impactful but together can create this transformation that we all want to see, and it starts with financial literacy.
Moving from the Trust Machine, we dive straight into talking about partnerships and what is the criteria that Finastra looks for while partnering with an organization for ESG.
Jay: It’s important to start with an understanding of why corporations invest in environmental social governance ESG.
Corporate philanthropy is the bottom of the pyramid if you think about how companies create societal value. The majority of companies play in this corporate philanthropy space right so that’s the base of the pyramid where they take money out of the bottom line profits and allocate it to charities. We have some focus areas at Finastra and programs that we run are within those pillars that create impact and then the pyramid is where very few companies play and that’s where you create shared value. And just through your natural operations, your business as usual practices you’re creating value in society and you know benefits for the planet and that’s where Finastra is heading towards.
So really the criteria for getting a philanthropic grant from Finastra is if you can solve a problem that we can’t or you can solve it faster or better. Let’s agree upfront this is our expectations and you will only get the next year’s funding if you meet this criterion. As evaluated by someone who’s independent, I’m very glad to say that we’ve been overly impressed with Rang De and what you’ve been able to do with the resources we provided.
What value do you see in this partnership and what is the you know expectation upfront going forward.
Jay: My question is what can we do more, what can we do now, what’s the next step?
And here’s what we’re thinking at Finastra, we know that over the next 10 years there’s going to be a billion new jobs needed to support the growing world population right currently economies are being set up to create 400 million new jobs, so there’s going to be a shortage of 600 million jobs globally and a lot of that is in the emerging world, in the developing world. So, what can we do to address that because if we don’t do anything we’re going to have mass unemployment, we’re going to have social unrest, you’re going to have high levels of crime, you’re going to have an overburdened tax system, there’s gonna be so many repercussions if we don’t start addressing that now.
As I mentioned the Trust Machine, the whole point of it is to get capital from small businesses so businesses can create jobs and we know that 92 per cent of net new jobs in the emerging world are created by Small businesses so my challenge to Rang De. And this is how do we leverage Rang De platform and there’s credibility now in the market to go and not just lend to the individual and the micro-business but to lend to the SME business that needs 500 000 to go and create a hundred thousand jobs right um in India for example and you know so you know I very much see Rang De being part of the Trust Machine process.
Watch the full video interview here:
Jay ends the conversation by encouraging us to stay on our mission with his words of appreciation for our endeavour.
“We’re big fans of Rang De, we don’t need the biggest company in the world to make an impact, just need the right voice and the right standing to take your idea and globalize it. And that’s exactly what Finastra is trying to do with Rang De. We see the value you created in the few years that you’ve been operational and we want to take that same thinking, that same vision and scale it across the world to help people in India and outside’.