MasterCard CEO Ajay Banga on Taking Risks in Your Life and Career
Stanford Graduate School of Business2014-06-13
career advancement#career choices#career decisions#career development#corporate#corporate branding#corporate strategy#credit#credit cards#customer experience#customers#data#data analysis#developing countries#diversity#financial institutions
2M views|10 years ago
💫 Short Summary
The speaker shares their career journey from Nestle to PepsiCo, Citi, and MasterCard, highlighting the importance of learning, adapting, and taking risks. They emphasize humility, success, and the need for continuous growth. The speaker discusses global economic opportunities, the potential of Southeast Asia, and the importance of financial inclusion. They address electronic transactions, the vision of a cashless world, and the significance of innovation at MasterCard. The speaker emphasizes work-life balance, enjoying work, diversity, and the impact of verbal abuse post-9/11. They advocate for building relationships, embracing diversity, and showcasing their company's role in electronic payments.
✨ Highlights
📊 Transcript
✦
Career trajectory from Nestle to MasterCard.
01:01Multinational corporations like Nestle and Unilever offer learning opportunities in business, culture, ethics, and quality products.
Early career experiences are valuable in the competitive job market.
Benefits of starting at Nestle include reputation and growth opportunities.
Spending 13 years at Nestle influenced by company's strengths and attributes.
✦
Reflections on time at Nestle and lessons learned from key individual Barry Rhine.
04:17Barry Rhine emphasized never taking no for an answer and the power of one person to make a difference.
Importance of communication and driving passion into action for success.
Experience as a young MBA entering a company with traditional leadership structures, facing initial resentment but ultimately learning valuable lessons.
Lessons learned at Nestle set the speaker up for future success.
✦
Importance of learning from different experiences and taking risks in one's career.
06:41Insights on making career transitions and pursuing new opportunities without hesitation.
Career journey from Nestle to Pepsi Co, and then to Citi and MasterCard, showcasing diverse roles and responsibilities.
Emphasis on continuously challenging oneself and seeking new challenges to avoid stagnation.
Reasons behind specific career moves, such as seeking global opportunities and professional growth.
✦
Speaker's decision to leave Citi for MasterCard.
10:21Challenges of leading a large workforce at Citi compared to the more manageable size at MasterCard.
Success of MasterCard's strategy execution resulting in quadrupling of stock value.
Speaker reflecting on humility and personal traits contributing to professional success.
✦
Importance of humility, adaptability, and progress in achieving success.
12:38Barry Rhine and Sandy Rime serve as examples of successful leaders who prioritize treating all individuals equally.
Humility is identified as a critical factor for success, although it is not a requirement.
Taking risks in life and career is emphasized as essential for success, encouraging embracing change and new experiences.
Being open to new challenges and opportunities is highlighted as important for personal and professional growth.
✦
Emphasis on learning, adapting, and changing over time.
15:53Highlight on the innovation and strength of the United States post-financial crisis.
Prediction of exciting growth opportunities in Southeast Asia.
Potential for economic development in the region.
Encouragement for continual growth and adaptation in personal and economic contexts.
✦
Economic growth potential of countries like the Philippines and Thailand.
18:49$3 trillion economy with 600 billion people through infrastructure investments.
Importance of good governance for growth in Asian countries.
Decision-making process for MBA students on building businesses in home countries or staying in the U.S.
Personal insights on advantages of U.S. environment for expanding and growing businesses.
✦
Importance of addressing the majority cash-based market in the global retail industry.
21:56Emphasis on the lack of financial inclusion for billions worldwide and its impact on prosperity and growth.
Advocacy for providing identity and electronic payment access to improve the lives of the underserved.
Challenge to consider the potential in addressing the 85% cash market alongside the 15% electronic market.
✦
The company aims to create a cashless world by providing secure identity cards for money transfers.
24:39Current social security systems experience high levels of theft, emphasizing the need for a more efficient system.
Emphasis on competing in the 15% market through technology, data, and unique products.
Opportunity in the 85% cash market due to high costs associated with cash production and distribution.
Inefficiencies in the current cash system create a significant opportunity for improvement.
✦
Discussion on tax evasion and the impact of using cash for illegal activities.
27:30High tax evasion rates in India and the need for revenue to support infrastructure and essential services.
Hidden costs society bears due to cash transactions and the need for a new dialogue on the use of cash.
Importance of innovation at MasterCard, with the creation of MasterCard Labs to drive new ideas and ensure ongoing innovation within the company.
✦
Importance of Work-Life Balance and Enjoying What You Do.
32:30Emphasis on having time for oneself and loved ones.
Work-life balance is subjective, with some working long hours and still feeling balanced.
Enjoying work is crucial, as is dedicating time to important relationships.
Significance of finding fulfillment in one's professional endeavors and questioning why one is working if they do not enjoy it.
✦
Importance of Balancing Work and Personal Life
34:10Emphasizes spending quality time with loved ones over technology.
Prioritizing relationships and being present in the moment is crucial.
Diversity in the workplace is discussed, focusing on actions and capabilities rather than appearance.
Self-confidence is highlighted as essential in standing out in a corporate environment.
✦
Overcoming verbal abuse post 9/11 in New York City.
36:59Importance of finding strength and support from the majority of caring people.
Support received from boss Sandy Weiland, who provided transportation and walked with speaker to work.
Emphasis on the significance of having compassionate individuals around.
Advice against being influenced by negative individuals.
✦
Importance of Collaboration and Relationship Building in Business.
41:01Companies like Google, PayPal, and BitCoin are seen as part of the ecosystem, not competitors.
Experience working overseas since 1997, particularly in India, taught the value of having backup plans due to obstacles like corruption.
Emphasis on learning and adapting from others to achieve success in life, regardless of age or background.
✦
The importance of true diversity in India.
43:27Resentment towards being tokenized for appearance.
Diversity is about surrounding oneself with different perspectives.
The value of sincerity in seeking out diverse individuals.
Commitment to actively seeking out and embracing differences.
✦
Changing perception of the company as a technology infrastructure for electronic payments, not a credit card issuer.
46:00Emphasizing anonymity of transaction data and dispelling misconceptions about ties to banks.
Highlighting the company's foundation holding 12% of their stock as the second largest globally.
Expressing a desire to showcase the company's positive impact through actions and public speaking.
Demonstrating the company's role as a technology and data company that can make a difference.
✦
Speaker's appreciation for the opportunity to share their perspective and engage in dialogue.
48:41The speaker expresses delight in being asked questions that allow them to explain their thoughts.
They appreciate the opportunity to share their perspective and engage in dialogue.
00:00[MUSIC]
00:05>> Thank you so much for being here today.
00:07It's a real pleasure to have you.
00:08And before we dive in, I wanna have a
00:10brief roadmap of where we're gonna go with
today's conversation.
00:13Wanna begin with your career and it's
00:15trajectory to date, 30 years, Nestle,
Pepsi-Co.
00:19>> You're giving away my age very quickly.
00:20[LAUGH].
00:22>> So Nestle, Pepsi Co, Citi, and now
MasterCard.
00:25>> Yeah.
00:26>> They now wanna move on to, in the last
10 years at Citi and now MasterCard,
00:29you've had a chance to develop a global
00:31perspective, and I wanna explore that a
little bit.
00:34>> Okay.
00:34>> And finally I wanna pivot some more
personal
00:36things like work life balance, family,
diversity et cetera.
00:40>> Okay.
00:41>> Now before we begin, I also have a deal
for you.
00:44If you can forgive have my MasterCard
debt, I'll stick to the easy questions.
00:47[LAUGH]
>> Now, what if I double your debt?
00:52[LAUGH].
00:52>> Okay, hard questions it is you guys.
00:53[LAUGH].
00:53>> Sucker punch.
00:56[LAUGH]
>> So let's start 30 years ago.
01:01>> Okay.
01:01>> You graduated.
01:01You went to Nestle as your first job.
01:03>> Yeah.
01:04>> And you spent 13 years there.
01:07At the time when you were choosing your
first job, how did
01:10you choose Nestle as the, as the first
place you wanted to work.
01:12>> And so my wife and I were classmates at
business school.
01:17She's sitting right there.
01:18We were both, you know when we were in
business school.
01:21This was a long time ago 1979 to 81.
01:24In India, India just began to open up, to
the advent
01:28of multinationals coming in to build a lot
of businesses there.
01:34Some have stayed on over the years and had
changed their ownership model.
01:37Nestle was one of those, Unilever was
another one.
01:41Others had left when the Indian government
wasn't as conducive
01:45to foreign investment as it is in the
period in between.
01:48And so when we were graduating,
multi-national corporations like Nestle,
01:53like Unilever, were places to work in of
great attraction.
01:58They were terrific for learning the
business.
02:01They were great for understanding the
culture
02:03of a company that operated across the
world.
02:05They were great for comprehending the
concept of high
02:08quality products, of high ethics in how
you worked.
02:11And all of us looked up to those companies
as where you wanted to be.
02:16Because you would learn the things that
you needed
02:18to learn in your early years of working
life.
02:21And we guys, unlike you all who work and
then come to business
02:24school, we didn't risk to go, those
02:25days, straight from undergrad to business
school.
02:28We were very young.
02:29I was 21 years old when I finished my
business school career.
02:33And so, when you think about that, you
02:36think about the people in that frame of
mind.
02:38Nestle was a very attractive learning
place, with lots of
02:41strengths and attributes that I still
think the company has.
02:44That's how I ended up there.
02:45Getting in was not easy because everybody
in the class would apply
02:48to these few jobs that were available, and
they were very competitive, but.
02:52>> And then, you chose, you chose to spend
13 years there?
02:56>> Yeah, so clearly it takes me a long
time to learn.
02:58[LAUGH] But the er, that really attractive
part about Nestle was
03:05that you were able to move in different
parts of the company very quickly.
03:09It was part of why I went there.
03:10It's part of what I've tried to build with
all the recruitment programs we run
03:14here as well as in Citigroup without a
chance to influence the kind of program.
03:19Is I tried and build the chance for people
03:21to go across the company in different
places, geographically,
03:24functionally, opportunity wise, so that
they don't get stuck
03:28and where they joined is where they're
gonna be.
03:31And I think that's a big part of working
at Cedric for me.
03:33They took me into sales.
03:34They took me into marketing.
03:36They took me into factories.
03:37They took me into product management.
03:39Took me to running a region and gave me
the chance to work on changing
03:42the entire inventory system of the Indian
company
03:45and to manage inventory and working
capital better.
03:48Things that I don't know, but a lot of our
03:50company would have given me that breadth
and depth of knowledge,
03:53and I've lived in all parts of India, as I
03:55said, this is the one time you got paid to
travel.
03:58Not the most attractive places, but you're
paid to travel.
04:04>> And, so now, 30 years later and you
reflect back on
04:07that time at Nestle, what are one or two
things that you
04:10really learned over that, over the course
of those 13 years that
04:14set you up for so much success later on in
your career?
04:17>> I'd say that Nestle taught me a lot of
things.
04:21The guy, I still say that the guy was the
managing director of
04:23Nestle when I joined, many levels above
me, a guy called Barry Rhine.
04:26He's still one of the people I've learned
the most from.
04:30And I think people make the difference,
not just companies.
04:35And you'll see that'll keep coming up in a
conversation with me.
04:39That one individual can make a difference
04:41and Barry Rhine made a difference to
Nestle.
04:43It was there when I joined.
04:44And his view, aside from the company's
commitment to quality and
04:48ethics and standards, his view was, never
take no for an answer.
04:53There is always a way to get to the right
solution.
04:56If you apply your mind, don't take the
hurdles that come in your way as the
05:01reason why you'd move around them or give
up or as in India they say, jugar.
05:05Jugar means you adjust for everything.
05:07He said don't do that, that's the wrong
way to do business.
05:10Go for it.
05:11Never take no for an answer.
05:13And the second thing that he taught me,
which I think was tremendous, was that
05:17you're one added, you're one person, but
05:20you're one person you can make the
difference.
05:23If you have the energy and the passion to
drive it
05:25in to action, and if you know how to
communicate well,
05:28which by the way is the most underrated
attribute when you're
05:32young, but the most important attribute as
you grow, is your communication.
05:36And if you can do those two things well,
then there's a whole new world out there.
05:40And I think Nestle taught me that really,
really, well thanks to him.
05:44And the last thing I think I picked up for
05:47is, I was a young MBA entering a company
which traditionally
05:50had been run by people who had grown up
there from
05:53being a sales rep all the way to being the
boss.
05:56And, you know I was among the first few
groups of new MBAs to come in.
06:00And therefore there was always the
resentment
06:02about these young kid who would learn
06:04from me and then come back in a six months
time, green behind the
06:07ears, if you could find my ears, and then
you would sort of, you
06:11know, have to be listening to this kid
tell me how to do my business.
06:14And I learnt that that's the worst way to
start your relationship with this company.
06:20And instead, if you take the approach that
you can
06:22learn from everybody, cuz we've all got
something to teach you.
06:25And then you can bring the value you
bring.
06:28But you gotta learn from everybody.
06:29It changes everything.
06:31And so, I guess that's the two or three
things in Nestle.
06:35And then, you chose to leave Nestle for
Pepsi Co.
06:37So 13 years at Nestle, two years at Pepsi
Co,
06:4113 years at Citi, now four to five years
at MasterCard.
06:45That's quite a few career transitions that
you've had.
06:47I think many of us expect to also have a
lot of career transitions.
06:49>> Yeah.
06:50>> As you've gone about your career and
made these big jobs, have you thought
06:54about timing and reasoning for when you
leave one place and go to the next?
06:59>> Timing, very poor.
06:59I just take the jump but I think I'm ready
to make it.
07:02I, in truth, in my, my generation you stay
in careers for a long time.
07:0630 years in one company.
07:08You guys a different.
07:09And I think you've got the right approach
to it,
07:12because if you don't try out new things,
if you're
07:15not willing to take a risk, you will
achieve very
07:18little reward out of the system the way
it's constructed today.
07:22And so, I have a big encouragement saying
if you wanna move jobs, or you wanna move
07:26roles within the company, or you wanna
move
07:28companies or industries, think about it
but go forward.
07:31Don't, don't, don't procrastinate forever,
and don't hesitate forever.
07:36So, timing in my case was more about when
I felt that
07:39I had learned what I could, and I wanted
to do something different.
07:43And my mind felt that I was reaching a
point where I was stagnating.
07:47So, the Pepsi thing is a different one,
that is only two years because
07:51Pepsi decided to spin off its restaurant
business, KFC, Pizza Hut and Taco Bell.
07:56That's what I had joined to start in
India.
07:58I didn't want to work for a franchisee, I
wanted to
08:00work for a large global organization, not
for a local Indian franchisee.
08:05And so out of the position that kinda came
my
08:08way because the nature of where Pepsi was
going through.
08:12But both of Nestle and Citi kind of stuck
it through,
08:15but I did many different things in each of
the companies.
08:18From, I told you about the Nestle, at
Citi, I
08:20did everything from joining in marketing
in India to running
08:23the region, Central Europe, Middle East,
Africa, to coming to
08:27the U.S. to run the lending business, then
the consumer business.
08:30Then I became the chair of the Global
Consumer Business.
08:33Then I moved to Asia, the [UNKNOWN] doing
his introduction, where I ran every one
08:37of the businesses in Asia through the
financial
08:40crisis actually, and then left and came
here.
08:42And each time its been something to do
with my mind feeling that I
08:47have more to give and more to do, but
maybe not where I was.
08:52>> I find the transition from Citi to
MasterCard to be particularly interesting.
08:56It was on the heels of the financial
crisis.
08:59A bit later in your career.
09:00I imagine there was a lot of stability and
09:03kind of community that you had with the
Citi Group.
09:07>> Oh yeah, I knew everybody there.
09:09I was in there.
09:10That's true.
09:11>> And still you made the choice to pick
up and try something completely different.
09:15>> You know, at Citi, if I stayed there, I
was
09:17clearly being prepared to be the next CEO
of the company.
09:19That was what the board had told me.
09:22That's what the CEO, Victor, who came her
to speak at one of these events, actually.
09:27Was the CEO that time.
09:28And that's what he told me as well.
09:30And everybody told me that.
09:33And I didn't know that I wanted to be the
CEO of a bank over the next 10 years.
09:38Cuz I think banking's gonna be a, an
09:40industry where, you're actually
contracting and shrinking and
09:44dealing with an increasing regulatory
environment rather than
09:48innovating and expanding and doing fun new
things.
09:51And MasterCard had technology and data and
even
09:54though I didn't do technology when I was
09:56a young kid, I did in school but not in
college I just love the space.
10:00I think I'm half a geek somewhere deep
inside where I enjoy the stuff
10:04and I enjoy data and I enjoy making
connections and I, I love grovality
10:08and its got all that in it, and its got
this interesting mix of
10:12b to b, and b to b to c, which I found
very fascinating.
10:15So a lot of work for me in my head
10:17at that time, which allowed me to think
about this company.
10:21And, the second piece was that
10:23MasterCard's number of employees are
relatively small.
10:26Citibank had 290, 300,000 employees around
when I was leaving.
10:33And an important of time, 200,000 of them
used to work for me.
10:36And it's impossible to make change with
200,000 people in your 3, 4, 5 year span.
10:45But if you've got 5,000, 2,000, 10,000,
15,000 people
10:48working for you, you can touch them, feel
them,
10:52put your arms around them, they know who
you
10:54are, they can understand you, you can make
a difference.
10:57You can actually change things in that
company.
10:59I was telling the Dean, when we were
talking just a little while
11:02ago, when I joined MasterCard, we had 9%
of our population was millennials.
11:08It's now four and a half years later, we
closed last year 34% from millennials.
11:13I could never have done that at Citi.
11:16I just could not.
11:17>> But can you argue millennials and stock
price are correlated?
11:20>> [LAUGH] Not on buying, maybe on doing
something about it.
11:24[LAUGH] Yeah, that's true.
11:26Our stock value has quadrupled in these
four years, that is true, right.
11:31But, that I think has to do with the fact
11:33that we are doing two things well, laying
our real strategy.
11:37It is simple to understand, and we are
executing
11:39against it and putting our money where our
mouth is.
11:41And if you do that well over a period
11:43of time, stock markets tend to compensate
you well.
11:47>> So I'm gonna try something a little bit
different, lets take
11:50humility put it in a box and throw it out
the window.
11:52You're now CEO of MasterCard, Citi had you
on deck to be CEO of Citi.
11:58Fortune had you as one of the top business
people of 2013 you are big deal.
12:03>> [LAUGH] Where's my daughter is she in
the audience?
12:08[LAUGH] If she's here i want to hear that.
12:11[LAUGH].
12:12>> There she is hiding.
12:13>> And, and, and so, now with all this
professional success.
12:17>> [INAUDIBLE] don't laugh me.
12:18>> What are one or two things about you,
12:21personality traits, personal
characteristic that have set you apart and
12:27let you have so much success while others
have
12:30stall, they've kind of reached their dance
in their career?
12:35>> You gotta ask somebody else who would
evaluate
12:37me, then I would tell you that, I would
12:38think humility is actually a big part of
this,
12:41you can't throw it out the window, cuz if
12:42you're not willing to learn from people or
adapt
12:45or adjust and progress in your mind,
there's always
12:47learning, you can't be in a company like
this
12:49and succeed, it just, it doesn't make any
sense.
12:52But I think that's important.
12:53I think I picked that up over the years in
some ways from people I saw and watched.
12:58Barry Rhine for example, used to have the
ability in Nestle to deal with the junior
13:03most employee and the senior most with as
13:05much interest of purpose with each of
them.
13:08The gentleman at Citi, Sandy Rime who was
the chairman and CEO
13:12and the founder of the merged CitiGroup,
has exactly the same attitude.
13:16He can deal with the gardener in his
13:18vineyard, he can afford vineyards, so he's
done well.
13:21And he can deal with a gardener in his
vineyard with the same
13:24interest in purpose and passion as he does
with a president of a country.
13:29I don't know that you can diverge that
from success.
13:32I think it's actually a key part of who
you are, and how successful you can be.
13:36I think you can be successful without the
humility, but you won't enjoy it as much.
13:40So that's kind of one big part of it.
13:42I think the second part of it is, you've
got to
13:46be willing to take risks with your life
and your career.
13:50And you guys do that.
13:51This school produces entrepreneurs and
people who want to take a risk.
13:56But, so it's a little preaching to the
converted here.
13:58But it wasn't that way some years ago.
14:01And it isn't that way with a lot of your
colleagues
14:03and friends and pals, who don't take the
same risks, and.
14:07By risks I don't mean changing jobs only,
14:09I mean there you're living and what you
do.
14:10I, you know, [UNKNOWN] has been to eight
14:12or nine schools before she left high
school.
14:16Around the world, in different places.
14:18Her sister, the younger sister, had been
to a similar number.
14:22We've lived in as a family, [UNKNOWN] and
I
14:24have moved I don't know how many times
now.
14:27And, we've lived in a house of our own,
for the first time after coming to the US.
14:31Otherwise it always been a rental house
somewhere
14:34and to by a company and moving around.
14:36And I moved from, different functions and
different companies.
14:39You have to take those risks.
14:41That's it, those two probably are the most
striking.
14:46And so I spoke to your daughter yesterday
and she mentioned that you love Lady Gaga.
14:50[LAUGH] And so, so, my, my question.
14:54>> Can you believe that?
14:56[LAUGH] Do I look like a Lady Gaga kind of
guy?
14:57>> Is it true?
14:57[LAUGH].
14:59>> Actually, I do.
14:59[LAUGH].
15:02And so, the question is.
15:03>> Among others.
15:04>> Among others.
15:05>> Just to be clear.
15:06>> Do you think that you were born that
way?
15:08[LAUGH].
15:10>> Yeah.
15:11>> Or was there, or was there a point in
time where you
15:13made the decision that [UNKNOWN] I'm gonna
be more humble and take more risks?
15:17[LAUGH].
15:19>> I'm thinking about the [UNKNOWN]
address, but never mind.
15:21[LAUGH] I don't know, I don't think you're
born that way.
15:26I think this thing about you're born this
way,
15:29you're born that way, is given too much
credence.
15:32I think your mind is capable of a great
deal, of learning, adapting
15:35and comprehending, and disciplining, and
operating in a method that you care for.
15:40I think what your early experiences.
15:42And the values you pick up.
15:44Yes, that makes a difference.
15:46But I don't, I don't believe in this born
that way stuff.
15:48I just think, you pick it up as you go
along.
15:50And you're capable of changing who you
are, as you go along.
15:53>> That's inspirational for a lot of us in
the audience, so.
15:57Moving forward now to the last ten years.
15:59At Citi you had a, you had a job that had
a very global perspective.
16:03And now MasterCard obviously very focused
on rolling out the business globally.
16:10In your time with on this, with this
perspective, what do you
16:14think now is the most exciting thing
happening in the global economy?
16:18>> [LAUGH] Actually I have a big [UNKNOWN]
on the U.S .,and
16:22I've been that way for years through the
decline in the financial crisis.
16:27I was speaking at a commencement ceremony
a MBA school
16:29at that time, which shall remained unnamed
because it's a competitor.
16:33But, the the focus of my speech, was
innovation is alive and well in
16:38the United States, and you better watch
out, because it's coming.
16:43And that was in the height of, I would say
it was 2008 or nine, that I did that.
16:50The, I still think this is the most
16:52exciting economy in the world, for various
reasons.
16:55I think it's taken the adjustment and the
pain.
16:58To a larger extent, than some of the
others, after the crisis.
17:01The balance that come out of the crisis,
with their balance sheets in better shape.
17:06Arguably, they need to do more.
17:08Households have come out with their
balance sheets, in way better shape.
17:11Companies have got enormous amounts of
cash.
17:14On their balance sheet and, you look in
our balance
17:16sheet, there's no debt, it's all cash, and
we're not the
17:19only ones, we're surrounded by companies
like Apple, that are
17:21trying to find ways, to give it away
theses days, right?
17:24And so, when you think about the the
environment here,
17:28the environments are on a stronger
footing, than anything else.
17:32At the same time, productivity is at very
high levels, innovation is alive and well.
17:36So there's a lot going on here, that I
think would make the
17:40U.S. still, a terrifically exciting
economy,
17:43for the next five, seven, eight years.
17:45Who knows after that.
17:46Because the world changes, much faster
today, than it ever did in the past.
17:50That's one of the most exciting.
17:52The second part that's interesting to me,
is, actually South East Asia.
17:57I know every talks about China and India
and, I I, I think that gotta go
18:01beyond that, I think those are large
markets
18:04and they'll be very exciting to look at,
and
18:06do things with, but people are missing out
18:09the next five, seven, eight years Asian
will
18:12be an unbelievable driver of growth, in
that
18:14region The Asian ec, economic community is
coming together.
18:18And when it comes together, those nations
ranging from
18:21Laos, Cambodia, and Vietnam to Singapore
and, Malaysia, and
18:25the Philippines, and Thailand, are gonna
create a economy
18:29that's gonna be $3 trillion, with 600
billion people.
18:33And the way they're connecting it is
through rail links and bridges, and
18:37they're building bridges across the sea
all the way to connect south China.
18:41With, with the Asian countries.
18:43And when they start putting money into
the, they're talking
18:46about $500 billion in infrastructure, in
the next five years.
18:49That community, with good governments by
the way, because countries
18:52like Singapore, they're like, excellent
governments, excellent methods of working.
18:57You're looking at a huge burst of growth
from Asian.
19:01Secondly, the U.S., Asian and North
America.
19:05Mexico would be interesting too.
19:06But, the U.S. and Asian are the two, that
people don't pay attention to.
19:11Everybody talks about China and India and,
blah blah, but it's beyond that.
19:16It's beyond that.
19:17>> And a good number of MBA students are
international.
19:19From different countries across the world.
19:21And, I know many of them struggle with the
question
19:24of, after I graduate, should I go back to
my
19:26home country, and build a business there,
should I stick
19:28around the U.S. and try to find a job
here?
19:30How would you think about navigating that
decision from where you're sitting?
19:35>> That's a personal conversation.
19:36A lot of it has to do with your
[INAUDIBLE] in terms of, what
19:39you think you can do well, and the kind of
place you wanna be in.
19:42The dreams you have, and the aspirations
you have.
19:45I will be the last one to say you
shouldn't go back
19:47and try and do something there, because
probably, you will stand out even
19:51better there, where you came from, than
you would in the U.S. where
19:54there is a very large number of people who
have different opportunities that.
19:58You're competing for, right, there's to
that extent, why would you not go back?
20:03But I tell you, this is the place where
you can really get things done.
20:07This is the place where the environment
allows you to think about
20:10expanding and growing, in a way that you
can't do in other countries.
20:13You, I am Indian by birth, and I was
educated there,
20:16I have no education overseas, my, my
daughters have done me proud.
20:20Because, they do stuff I couldn't do, but
what you kinda get out
20:24of here, you get out of schools like this,
and you, go back to
20:28to going back to Indian work, I don't know
that I could deal, with
20:32the infrastructural issues, of opening a
business
20:35where power is not available, and where.
20:39Permits are a problem, an where, I joke
with people
20:41that we're in China, when you shake hands
with a leader,
20:44and you want to open a business, they roll
out
20:46the red carpet, In India, they roll out
the red tape.
20:48[LAUGH] And it's just, you know, there's
600 more mouths to
20:51feed, kinda thing, and it is just a, it's
a nuisance.
20:55But, if that's what inspires you, you
should go do it.
20:58It just doesn't work for me.
21:00And for me, the globality and the ability
to do things
21:02that are global scale out of places like
the U.S., the
21:05impact, the openness, the opportunity in
this environment, an this marketplace,
21:10are way too attractive, for me to easily
give that up.
21:13And go somewhere else.
21:15I would do it as part of my, my career in
my future,
21:17but I would never do it, as where I would
live for my life.
21:20I couldnt do it, and I've worked, 14 years
in
21:22India before leaving, 15 years, before
leaving and coming out.
21:25And, I've kind of seen both sides to this
game, so.
21:29Coming back to the United States two, two
of your
21:32largest competitors Visa and AmEx and you
guys have kind of.
21:36>> Those are bad four letter words.
21:37[LAUGH] Both of them.
21:39>> That's true.
21:40[LAUGH] You guys have coexisted in this
space for a while now.
21:43>> Yeah.
21:43And one thing that I think would be
21:45interesting to hear, is how you think
about competing.
21:48With such established companies, in a
mature market?
21:51>> So actually the [INAUDIBLE] mature 85%
of
21:56the world's retail transactions are cash
and check.
21:59Only 15% are electronic.
22:00And everybody focuses on the 15 and the
scrap for market share in the 15 and.
22:05That's important, you must focus on that.
22:07But you gotta remember there's 85% out
there.
22:09And, by the way in the U.S., that number
is 50%, cash and check.
22:14And in Germany, its 78% and in Japan, its
80%.
22:19So this is not a developed world,
developing world thing.
22:23This is cash is still king, for various
reasons, good and bad.
22:27And I'm a believer that actually, there's
more bad than good, on the cost of cash.
22:31And, I could go into that for, as long as
you'd like.
22:34But the idea is that, that I think there's
a huge
22:37opportunity, in this industry, so, its
actually not a mature industry.
22:41It's got a great opportunity.
22:41And, the example in Nigeria that the dean
was describing.
22:45Was an example of getting financial
inclusion, to be part of this change.
22:49There's 2.5 billion people in the world,
who do not have what you and I
22:53take for granted, a bank account, an
identity,
22:56a card, things that you think just work.
22:58You just, go online and you want to order
a, you
23:01know, food from thin cow or from anybody,
and it comes.
23:05Well, it doesn't work that way for these
people.
23:08And so, their lives are different, and
that's gotta change.
23:12Because, non-inclusive growth, will
destroy the feeling that I'm talking
23:17about, of prosperity and growth in the
U.S. as well.
23:20The U.S., by the way, has 40 million
people who
23:23do not have a proper bank account, just to
be clear.
23:25This is, again, not a developing world
issue.
23:28Developed Europe, has 93 million people,
who do not have a bank account.
23:32And so, there is an enormous opportunity,
to get people
23:35an identity, and the self respect that an
identity brings.
23:39And add that to electronic payments, and
take out the
23:42victimization that only the poor feel, by
not having that access.
23:47Cash, is the friend of the poor, of the
rich man, not of the poor man.
23:52Because its the rich man, who uses cash to
suit their needs, not pay the
23:56correct taxes in many countries indulge in
the
23:58kinds of things that only cash can provide
24:00you with the chance to do, and that's
24:02the misconception of existing society, for
the long
24:05time, so, I'm a big believer that there's
24:08a huge runway, in this industry, of
growth.
24:10And the question is, are you gonna focus
all your attention
24:14on the 15% or on the 85% as well, as the
15?
24:18You don't pay attention to the 15, you
don't get to
24:20fly out out places like this, and speak to
people like you.
24:24But if you don't pay attention to the 85.
24:26It won't be a great company ten years from
now.
24:29And that's the simplicity of our vision,
our vision is, a world beyond cash.
24:32That's what I'm focused on, that's what
the company is focused on, every
24:36one of our employees, if you ask them,
what's the strategy of this company?
24:39It is to get to a world beyond cash.
24:42And that's as simple as it is.
24:44Once you get that, how do you compete with
everybody else?
24:46Well, I'm not sure they have the same
perspective.
24:50So, that gives me space for play.
24:51Hence the Nigeria example.
24:53South Africa, where your dean comes from
originally, we've actually
24:57gone and given every South African who
gets social security payments,
25:01an identity, with a card, issued by the
government, with
25:04biometrics on it, where the money can be
given to them.
25:08Every week, without somebody getting in
the middle.
25:10There's an estimate that 42% of the money
that goes from a
25:13government to an individual, through
social
25:16programs, gets stolen along the way, 42%.
25:19And the World Food Program, loses 40%, of
the food
25:23that it takes from farmers here, to
distribute to refugees.
25:28You can change all that, if you do it
smart.
25:30So, how do you compete in the 15%?
25:33There you compete, with things like
technology, which we're
25:36investing a great deal of money and effort
on.
25:38You compete with data.
25:40You compete with a good
25:41differentiated product, differentiated
analytics, with consumers.
25:46That's how you compete on that, and, that
I'm comfortable competing in.
25:49It's the 85 that is a big opportunity.
25:52>> So, with that 85%, does that make you
allies
25:55with your competitors, in making, helping
these 85% become banked?
26:00>> Competitors that exist today, as well
as new
26:03ones that are constantly being formed, by
young people
26:06like you, who want to go and find a
26:07way to disintermediate us tomorrow, and
that's a good thing.
26:11Because, if you think about producing new
technology,
26:14it's not just the, don't focus on the
disintermediation.
26:17That's the 15% again.
26:18Think about the 85%, that's in cash.
26:22There is an unbelievable opportunity, in
the world,
26:25to get to revenue, out of the
disintermediating cash.
26:29Which to me, is public enemy number one.
26:31And I'll, I'll tell you why I say that.
26:34People think cash is free.
26:36Cash actually costs between 0.5 and 1.5%
of GDP, for the Central Bank
26:41of a country to print it, to secure it,
and to distribute it.
26:45This country has a GDP, of 15 trillion.
26:481.5% of 15 trillion, is a shit load of
money.
26:53>> Yes.
26:53[LAUGH].
26:54>> You could do a lot with that money,
which we're not doing, correct?
26:58So there's that.
26:59And then if you go past that, what's
turning that cost, is the cost of banks,
27:04to pick up that cash, from the federal
reserves [INAUDIBLE] and move it around.
27:10And by the way, that all comes in armored
trucks, with two people.
27:14And if you ever look at a Brinks armored
truck
27:16that delivers cash to your ATMs here,
there's always two guards.
27:19Why, are there two?
27:20Because if there's one, the damned thing
disappears.
27:22[LAUGH] Right, it's the whole cash is
fungible, it goes away, and gets lost.
27:26And hidden, and then, if you go beyond
that.
27:29Tax evasion that I talked about.
27:30You can't evade taxes long-term, without
using cash.
27:34The U.S. is one of the lowest tax evasion
countries in the world.
27:37And even here, the estimate is that 20% of
the economy, is underground.
27:42In India, it's a blood sport, not to pay
taxes.
27:45The only guys who pay taxes, are people
like us who are salaried.
27:49And that can't be the right way for India.
27:50It needs revenue, for the government to
27:53do real things, with infrastructure,
education, healthcare, water,
27:57all the stuff that India needs, to
27:58have a demographic dividend, not a
demographic liability.
28:02Which is what it's gonna get, if it
doesn't sort itself out.
28:05And so, when you get past all this
nonsense about
28:07cash being free, then you come to the
worst one.
28:10You guys have, studied in a campus in the
United States, and.
28:12Some of you are undergrads here and, no
doubt you encountered drugs along the way.
28:16But guess what?
28:18They come from certain countries into the
country, and by the
28:21way, which of you paid for those with your
credit card?
28:24You pay for them with cash.
28:27Not just you, how it comes into the
country, and how guns
28:30go out and they're showing up in Mexico,
and the gang wars.
28:33All guns are manufactured in the U.S.,
you'd think they
28:36go in exchange to the Bank of Nova Scotia
via transfer.
28:40So there's a hidden cost, that society is
bearing, for
28:44the use of cash, for the anonymity, that
cash provides.
28:48And I don't think that's the right cost.
28:50I just think there's a new dialog to be
had,
28:52about what should be done with cash,
versus other things.
28:55So, 85% is cash.
28:58That's the one to go after.
28:59>> And getting to that 85% requires quite
a bit of innovation.
29:03I've heard you say in other speeches that,
innovation is mission critical.
29:07At a large company like MasterCard, how do
you ensure innovation continues?
29:12>> Very tough but, it's critical
completely.
29:14So, if we, if, we're in an
29:15industry where technology's innovating
around us very rapidly.
29:19And, and we've gotta keep pace and in
fact, in some
29:22ways, we've gotta be drivers, of new
ideas, in that space.
29:25So, we've done two or three things.
29:27One is we created a group inside the
company called MasterCard Labs.
29:31Which is headquartered in Dublin, has
locations in
29:34the U.S., and in Singapore, and Brazil
now.
29:37In an effort to get innovation from around
the world, to flow into what we're doing.
29:42And, these guys are they're actually kept
safe from
29:45the lunatics who run the asylum, inside of
MonsterCard.
29:49Right, so, so they have a budget that I
give them, which only I can change.
29:53My CFO is not allowed to question it,
nobody in the company can change it.
29:58It's my budget, I give it to them.
30:00They work with that.
30:01They have They don't have to give me any
spread sheet for any project.
30:05Because, you guys want work done here, you
can produce a spreadsheet and It has 24
30:11sub spreadsheets, you change the number on
the
30:1423rd one in roll zero 7 [LAUGH] column 14.
30:16And your entry on the first page becomes
35% instead of 3.5%.
30:21[LAUGH] I'll never find it, I would lose
30:23numbers in change, It's a waste of my
time.
30:26So I told them, here's the money, you
choose the products.
30:31I need commercially viable, two products,
after two years.
30:35If I don't, I'll fire the whole Lorraine,
and start again.
30:39It works, i now have four products
Incubation
30:41and i will stay within three of them
30:43by the way are run by women, so much more
for women cannot succeed in Technology.
30:48That's another bank, that like cash of
three that should be dispense
30:52with and three of them are run by women
[UNKNOWN] for and they
30:55do a great job, by the way they're kicking
ass on those, on
30:58what they bring in the company and that's
what I'm trying to do.
31:02That's part of innovation.
31:04But the other part of it is, it's gotta,
you know, seep into
31:06your bloodstream, It's gotta be, you gotta
have an osmosis there on this.
31:10And so they're putting money into venture
capital firms that
31:13show us many more new technology pieces
than we ever saw.
31:17We have people working inside the company
on being told that
31:21if you try something new and it doesn't
work, that's fine.
31:26You can take a risk and you can lose the
money and move on.
31:28And it's the, it's the culture you build.
31:31It's not just creating labs and giving
them money.
31:34It's the culture around it that we're
trying to build.
31:39>> Great so at this point we are about
twenty minutes left.
31:40I wanna to switch gears a little bit more
31:43of your personal life,and so one big topic
in the
31:46GSB is work life balance and you always
say you
31:49have a very busy career, you are very
global career.
31:52>> What you guyz have a topic at GSB,
31:54you got a problem with working life
balance here.
31:56>> [CROSSTALK] [UNKNOWN] about it in the
future [LAUGH].
32:00>> I want your work life man [LAUGH] but
this is for the future.
32:03>> For the future.
32:05>> For the future.
32:07>> You're already planning for your work
life already.
32:08>> [LAUGH] We're trying to protect what we
have right now.
32:11>> I get it.
32:12>> And so,and so how do you think
32:13about balancing those two things in your
own life?
32:19>> Work life balance of very personal
thing, you know?
32:22There are guys who work 12 hours, 18 hours
a day and they think they've got balance.
32:26There are others who work six hours a day,
and they think they've got balance.
32:30So I don't know how you define it for
yourself, but for me...
32:35Work life balance request, I guess a
couple of things to happen.
32:38One is gotta to enjoy what you're doing.
32:41You really have to.
32:42It's really, really critical.
32:44If you don't enjoy what you're doing, it's
time to do something different and
32:47that's part of the reasons why have
changed what I did over the years.
32:51Because if you're gonna work as hard as we
work, and I travel probably 2/3's
32:55of the time, and if you're not gonna to
enjoy what you're doing when you travel.
33:00Why the hell are you doing it?
33:02And so work life balance starts with
enjoying, what you do really well.
33:07At the same time you've gotta have time
for
33:10yourself ,and the people who matter to
you, I
33:12mean, by that I mean, you know not just
33:14helping other team move into a dorm room,
and
33:17Harvard by the way was up four bloody
flights
33:19of stairs, with no elevator [COUGH] with a
room
33:22partner who hard a stupid shipping trunk
that was
33:25bigger than my car [LAUGH] carried up the
stairs and.
33:28I used to call that the two-Advil
believing, right?
33:30You could have had them and then you had
two Advils
33:33so you could wake up in the morning
without a broken back.
33:35But that, you gotta provide time for that.
33:37You gotta provide time for the, for the,
that play with their acting and intern.
33:43The small part that's totaly from left
because, it's important to them.
33:47And so, if you're not gonna be there when
they need you, then you've got to balance.
33:52So, coming, I was living in Hong Kong for
33:55a little while, running study group in
Asia, and I
33:57used to fly back from Hong Kong, for one
evening,
34:00to be able to spend the time that was
required.
34:03If one of them are little were doing
34:05something, that was important to us as a
family.
34:08So, I guess you've gotta enjoy what you're
doing, but you've also
34:10got to take out the time, for the people
who matter to you.
34:13And when you're with somebody, spend the
time with the person you know.
34:16This stupid habit of having a Blackberry
and an iPhone, in your hand all the time,
34:20honestly, you're not spending time with
the people
34:22you're with, your spending time with the
instrument.
34:26And the instrument isn't your work life
balance, It's actually
34:29in some place an invasion of your work
life balance.
34:32It's useful don't get me wrong, I use the
darn thing all the time but.
34:36It's an invasion if you're not careful, so
finding the right space that
34:40says when with you I am focused on you,
you matter to me.
34:43And I'm gonna to spend time with you, as
compared to I ,m doing that but
34:46also doing these looking at my email,doing
full
34:49calls taking our paper working on the
weekends.
34:52You gotta ,you've gotta figure out how to
find that balance.
34:55That's what we're working on balancing.
34:57The rest, all, kinda of works out.
34:59>> And then, another topic that we speak
about pretty frequently is the diversity.
35:02And, for you,uh you've always been a
physical minority,
35:06>> Heh, yeah.
35:07[CROSSTALK] [LAUGH] Throughout your
career.
35:10>> Yeah.
35:11>> And, and, has that every presented any
challenges for you in the workplace?
35:14>> Not really, the United States because
of the way it's
35:21constructed, actually truly gives you a
chance to succeed.
35:28No matter where you came from, and what
you look like.
35:32But what matters is, what you do and how
you do it.
35:35What, those, what and how, matter in
honesty.
35:38You can't just do the what and not the
how.
35:41But what and how you do matters and I
believe that passionately.
35:45I would say to more challenging if I had
been on continent,
35:48in Europe for [UNKNOWN], but that's not
the case in the United States.
35:52So that's not as much of an issue.
35:54In your, in fact you do stick out a mile
when
35:56you look the way I do and you kinda walk
into
35:59a company which is a fortune fortune 50,
fortune hundred company
36:03and you've got 200,000 people in at city
who work for me.
36:07You just, you've got to get comfortable
with your
36:10skin and have a little bit of confidence
in yourself.
36:13As compared to worrying about what the
other person is thinking about you.
36:17You're going to get stared and I walked in
today, I was telling you, and as I
36:20was walking in to your cafeteria, and why
36:21the hell is everybody staring and looking
at me.
36:24Then I discovered you put my photograph on
every table
36:27[LAUGH] which is the most embarrassing
thing in the world.
36:30And, and, and I walk in has this damned
tent card everywhere.
36:33>> [LAUGH].
36:34They don't guard no wonder they're staying
in there.
36:35>> [LAUGH].
36:36>> So that's not a good thing.
36:38But you can use that to your advantage if
you care about, talking to people.
36:44It's a great conversational opener.
36:46I've made friends who've talked to me
about why I look the way I
36:49do and they're still the best friends I've
ever had over a casual conversation.
36:54So not in work life.
36:55Your personal life, yeah, it can be quite
interesting thing i mean.
36:59Look, there are times like after 911, when
life was very complicated for me.
37:04And, I lived in New York city at that
37:06time, and that's the best way I can
describe
37:09it to you is I got shouted at and
37:11abused with verbal abuse, no physical
abuse fortunately, many times.
37:16But, you know find your way through it,
because you realize that
37:20only point 5% of the people, or smaller
than that, are doing that.
37:23The other 99.5% of people around you are
actually on your site.
37:28And they care deeply about what you're
feeling at that time his that kinda.
37:32If you have that strength, you can get
through a lot stuff.
37:36When I still get"randomly" check guy
pulled out for checking at TSA.
37:40And I'm the "ultimate random check guy.".
37:42.
37:42.
37:42.
37:42[LAUGH] But.
37:44But I what are you going to do?
37:46You can't fight that because you'll just
take it with you.
37:49So personally, a lot of things come around
you know.
37:51My boss at Citi at that time.
37:53My bosses' bosses' boss, was Sandy
Weiland.
37:56He called me the second day off, we these
issues erupted in New York City
38:00and said to me, listen, you're not gonna
38:02to fly commercially for the next few
months.
38:05You can have the company claim, whatever
they're
38:08entitled to, at that time, to go wherever
you've
38:10got to go, and we're a chance with
38:12you getting caught up with security at the
airports.
38:15You're not going to do that.
38:16Rule one.
38:16Rule two, you need a car to bring you back
38:18and forth from home place to work, from
Manhattan to work.
38:21You can have my car.
38:22And I soon walked anyway, because dealing
with
38:25it is more important than hiding from it.
38:28And yes, I got the looks and I got the art
comment, but I walked to work, and I
38:33walked back, and once in awhile, my boss
used to
38:36come to my house and walk with me to work.
38:39That's pretty cool, that's leadership, and
It matters.
38:44So you can deal with, it's more of a
38:46challenge on the postal side than in the
work firm.
38:48The work firm [UNKNOWN].
38:49>> It sounds like having people that
really cared are really helps a lot.
38:54>> It helps.
38:54It helps people do really care i,m tell
you 99.5% of
38:57the people around you really care about
how you're feeling and thinking.
39:00Just sensitive to you.
39:01People are, humanity is sensitive.
39:04Don't get taken in by the animals
[UNKNOWN] that's the issue.
39:08>> At this point I know my classmates also
have questions, I want to open it up a
39:11little bit I'll go to Steve first with a
39:12Twitter question, and then we'll go to the
live audience.
39:15>> [INAUDIBLE].
39:16>> By the way how is somebody supposed to
tweet
39:19you if you told them to put the phone
away.
39:22[LAUGH] I was trying to figure that out
when you were speaking but I.
39:26>> So following directions so that the
laptops away forms silence comes right up.
39:30So the question's from Twitter, is it says
tough times, seems everyone is trying to
39:36disintermediate you, Google, PayPal, now
BitCoin, which
39:40of these make you lose sleep and why.
39:42>> The only reason I lose sleep is my wife
snores, I don't lose sleep otherwise.
39:45[LAUGH].
39:47>> >Sorry.
39:50[LAUGH].
39:54>> She doesn't.
39:55So, just to set the record straight, I,
39:59I actually don't consider most of those as
competitors.
40:03I think they're part of the ecosystem
being developed
40:06at the end of the day, we're not, we're.
40:09Our technology connects billions of people
with millions of
40:13merchants, with tens of thousands of banks
in 200 countries.
40:18Whether you use a card or a mobile phone,
that Google is a big partner of ours.
40:22Apple's a partner of ours.
40:24In so many ways, all these companies
square with
40:26I know Jack Dorsey has been here to speak.
40:28Jack and I are very good friends we work a
lot together.
40:32Because square enables new acceptance.
40:35And so theres a perception that they are
disseminating us.
40:39Actually they are part of what enables us
to attack the 85%.
40:43Bit coin is a different issue.
40:45BitCoin's [UNKNOWN] disintermediates.
40:46If it disintermediates anything, it'll
disintermediate dollars.
40:50And God forbid that ever happens.
40:51But, but I don't think I, I don't think of
these as disintermediation.
40:56I just don't.
40:57So it doesn't bother me.
40:58I think of them as possibilities to work
with.
41:00We've got a bunch of people in
41:01our company who spend their time building
relationships.
41:06With all these new
41:17opportunities that we think of.
41:18>> I think you barely answered question
but as an Indian
41:21There are certain characters, there's a
way of thinking you're born in
41:25product fit, and you said you basically
learn that you aren't born
41:29in product fit over the twenty-five to
thirty years of your life.
41:33How does that hinder you from you know,
when you think of business today
41:37or how does that present opportunity for
41:39you when you are looking at global
businesses.
41:43>> You know, as I said you learn as you go
along, you
41:45learn and adapt and if you learn from
everybody you get to a.
41:48A very healthy place in your life.
41:50We can look back, I'm 54 now, and I kinda
41:52of look back on having worked overseas
since 1997, right?
41:56And, and in India before that, I kinda of
41:59think I'm a mix of all those things
together.
42:03But I'd say India did teach me a couple of
things.
42:06One of the things it taught me very, very
strongly.
42:09Was the idea of warriors having a plan B,
and a plan C, and a plan D.
42:15[LAUGH] Because in India, plan A will
certainly get sabotaged.
42:17Either by infrastructure, or some damn
42:19corrupt bureaucrat or politician, or
somebody.
42:21And so you need a plan B, a plan C, and a
plan D.
42:26It actually serves you in good stead.
42:31Even in an environment like the US, where
competition is moving
42:34very quickly, and things are moving around
you very quickly, and having
42:38a plan B and a plan C, is a smart way
42:40to think through the opportunities and the
risks that you're working with.
42:44That clearly you did, I think the second
thing I picked
42:47up in my time in India, which I still use
very carefully.
42:50Is that I took diversity in india for
granted, I just took it for granted.
42:57I grew up in the Army, my dad was an
42:59Army officer, I was an Army brat, we moved
regularly.
43:02You, you know, you went to things at the
local mosque and the
43:07local church and I went to midnight mass,
and I, I did all that.
43:11And, I took it for granted because around
me, people
43:14were Indians, but there were Sikhs, and
Hindus, and Muslims.
43:18And, people from the South of India had
asked for,
43:20in some ways, for a guy like me because
the language.
43:22We're all Indians in some way.
43:25And, I took diversity for granted.
43:27Then, I came overseas and found that
people make a big deal out of it.
43:31And I actually resent that in some way
because, I'm
43:33diverse, as you said, and if somebody told
me that
43:35I got my job because of the way I look,
43:37first of all, I think they would need a
head examination.
43:39But, if they did say that, I would be very
hurt.
43:41And I would leave instantly from that
company.
43:44Instantly.
43:47What I don't want to be a is a tick mark
in the box.
43:49Saying I've got my Indian American who's
got this, the guy
43:52who looks different, two women, four
43:54African Americans, three Japanese, two
Chinese.
43:56What?
43:56This is bullshit.
43:58That's not what life's about.
44:00Diversity is about having people around
you who don't think
44:04like you, don't walk like you, and don't
talk like you.
44:07You know?
44:07If it looks like a duck and walks like a
duck, it must be a duck.
44:09You need ducks and geese and minors.
44:11And spirals around you, in God's aviary,
and that makes for, an
44:17outstandingly diverse population, who
think differently,
44:21come from different backgrounds, have
different experiences.
44:23And by the way, if you choose carefully,
all
44:26the other formal aspects of diversity,
will fall into place.
44:30If you have sincerity, about surrounding
44:33yourself with these different kinds of
people.
44:35And I took that for granted in Indiana.
44:37I'll never take it take it for granted
again.
44:39Again I focus on it with a great deal of
44:41energy, to surround myself with people who
are different from me.
44:44[BLANK_AUDIO]
44:52Hello?
44:53Oh, okay.
44:54So you run a huge successful company, and
the way you talk about it is
44:57very inspiring that you're providing
identity and
45:00financial stability to people who need it
most.
45:03But, I'm willing to bet that If Jack
Dorsey were here
45:06or even, I don't know, the Snap Chat CEO
who's like.
45:09Obnoxious 18 year old whose company makes
no money.
45:13There wouldn't be an empty seat in the
house.
45:15So, and I think both sides are partially
to blame.
45:19Do you think there's something wrong with
our mentality about business,
45:22and which country's industries are more
important, which companies, I mean.
45:25And also you, as the CEO of Mastercard,
are there things you can do
45:29and should do in terms of how you present
yourself and market yourself to us.
45:34>> It's a great question, it's a great
question.
45:35And I, and I would tell you that one of
the reasons why I'm
45:38doing things of this type is to help
change the perception of who we are.
45:42We're perceived right, when I joined the
company, every
45:45time you read anything, it was credit card
giant, MasterCard.
45:49I don't insure a credit cards.
45:51I, we don't insure a single card.
45:53Banks issue cards, we don't.
45:55We are actually the technology
infrastructure
45:57through which the electronic payment rail
goes.
46:00And by the way I make less money on credit
cards
46:03than I make on prepaid commercial and
debit cards, each of those.
46:07So first misconception, second
misconception we
46:10decide the fees on your card.
46:12And so when you guys get a, a big debt
lottery on MasterCard as
46:15we started the joke, I actually have no
clue, what the debt law is.
46:20I actually don't know your name.
46:21In the database I have, your name never
comes to me.
46:24It only goes to your bank and your
merchant.
46:26What I get, is a 16 digit account number,
a
46:28time of the transaction, a dollar value,
and a merchant code.
46:32It's completely anonymized by the nature
of the data.
46:35I don't have to prove that I have
46:36a Chinese wall between two parties in the
company.
46:39And yet, people think that big brother is
46:41watching you, because I know everything
about you.
46:44I don't actually, I can make good
conclusions from the data I have.
46:47And so yeah misconceptions about our
company, abounded, they are caused by
46:51various reasons, but one of those was, we
were owned by the banks.
46:55Killer IPO 7 years ago, and so we were
seen
46:57as the mouthpiece of the banks in the
electronic payment system.
47:01It's not the case today.
47:02Banks own 2% of the company, and now we
are a $90 billion market cab company.
47:08I'm sure they are very sad they sold their
shares,
47:11but the fact is, they own 2% of the
company.
47:12And yet, we've seen in the financial
services company.
47:16Which we're not.
47:18And so, there's a lot of misconceptions
about us, and what I'm trying to do,
47:22is through a series of activities, public
speaking,
47:25but more importantly by the actions we
take.
47:29I'm trying to demonstrate that we are not
what people thought we were, but we
47:33are truly a technology and data company
that
47:35can make a difference to help people work.
47:38That we can do well and do good at the
same time.
47:40One of the secrets about our company is
when the IPO happened
47:4312% of our stock was put into a
foundation, that's run independently.
47:49That foundation today is the second
largest foundation
47:51in the world after Bill and Melinda Gates'
Foundation.
47:55It's headquarter in Toronto.
47:57And, and this they, told me that I'm the
gift that keeps giving.
48:00Because as the stock prices perform, their
[card purpose kept increasing.
48:03They now have a $12 billion corpus as a
foundation.
48:07People don't know that about us.
48:10And so that's our fault, not yours.
48:12You're the audience.
48:13It's the message I give you that you will
take away and so I'm trying
48:17to change that with what we do as well as
how we speak about it.
48:21The fact that the audience is not here
48:23in full number, I, you know, doesn't
bother me.
48:26People will come if they want to, [COUGH].
48:28And you can't force somebody to come.
48:29They'll come if they're interested.
48:32And I, I've never got fussed about that.
48:34I'm delighted you guys are here, and
you're actually asking me questions like
48:41the one you asked, because it gives me a
chance to explain how I think about this.
48:47So, thank you very much for doing that.
48:51I appreciate it.
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