MEET THE BOSS: François Durollet, Managing Director of PlaNet Finance

PlaNet Finance Group is an international organization with the mission of alleviating poverty through the development of microfinance. The group consists of a non-governmental organization (NGO) called PlaNet Finance, which has historically been at the heart of the group and offers advisory and training services, as well as a set of social businesses. Among these, Planet Rating is a microfinance rating agency, PlaNIS is specialized in the structuring and management of microfinance funds, MicroCred is a microfinance holding company investing in greenfield microfinance banks and non-banking financial institutions, PlaNet Guarantee provides microinsurance and FinanCités is a venture capital company that invests in very small enterprises in French urban areas.

François Durollet joined PlaNet Finance Group as PlaNet Finance’s Managing Director in late 2009. After completing graduate studies in Law and Public Finance at the University of Pantheon-Sorbonne in Paris, France, Mr Durollet was a financial manager for several municipalities. He then spent 20 years in the banking sector, holding leadership roles in risk management and technology and serving as Chief Financial Officer for Dexia Crédit Local, a French subsidiary of Belgium’s Dexia Group.

This feature is sponsored by PlaNet Finance.

MicroCapital: This will be the fifth profile MicroCapital has published on key PlaNet Finance Group staff members over the past year; would you please explain how the different units of the organization work together?

François Durollet: PlaNet Finance Group was created over ten years ago by Arnaud Ventura and Jacques Attali and functions in a unique way that combines social business activities and nonprofit activities. It is the power and efficiency of this business model, which is something quite difficult to implement, that drew me toward PlaNet Finance. We use emerging initiatives and techniques, such as mobile banking, asset management, risk management and social responsibility, to pull communities in developing countries out of poverty.

MC: How is the PlaNet Finance Group model unique?

FD: PlaNet Finance holds a very unique position in the sector as the only organization that combines nonprofit and social businesses activities within the same group. This model gives PlaNet Finance the flexibility to design innovative projects such as one that provides microinsurance for agricultural crops via PlaNet Guarantee. Here we have been able to provide both technical assistance and micro-insurance schemes in the same package to set up microinsurance programs in Asia, Latin America and the Middle East.

There is another point that I wish to highlight regarding the model of PlaNet Finance Group. All our new ideas are initially set up in the nonprofit part of the organization, which acts as an incubator. Once these activities become sustainable, they can become social businesses. At this point in the process, PlaNet Finance seeks either equity or technical partnerships with external organizations. PlaNIS’s activity, for example, has been incubating within the nonprofit part of the organization since its inception three years ago. All of PlaNet Finance Group’s social business activities are examples of this process. One new idea that we are working on, which relates to the management of cross-currency risk when refinancing microfinance institutions, should start this process of incubation soon. We always have one or two ideas in our NGO incubator.

MC: What non-financial services does PlaNet Finance provide?

FD: This is a very important question, as far as the NGO is concerned. Our aim is to develop two types of services or missions in the field. The first kind of service is highly technical and investigates ways to help MFIs improve their microfinance activity through up-scaling, downscaling and the opening of greenfield institutions. We are also trying to develop “microfinance plus” activities that combine microfinance with gender empowerment activities, production optimization, the hunt for new markets and the organization of microentrepreneurs into cooperatives so that they can develop strong positions in the market.

MC: In what areas has PlaNet Finance Group grown over the past year?

FD: There are now close to 1,000 people working for PlaNet Finance Group, and, of those, about 200 are working in PlaNet Finance, the nonprofit arm. Our number of employees has increased considerably because of the growth of MicroCred. Although we may be business-oriented, we always bear in mind the effects of our actions on communities on the ground. This motto is also apparent among PlaNet Finance’s staff, in terms of human resources management. In particular, we promote solidarity and gender equality within the workplace by enforcing policies such as equal salaries for men and women.

MC: Where do you anticipate the most change over the next few years?

FD: As far as PlaNet Finance is concerned, the huge market for growth and innovation is definitely in Asian countries, mainly China and India, where PlaNet Finance is not in a very strong position. PlaNet Finance set up operations in China more than seven years ago and has been very active over the past three years, since it started MicroCred Nanchong, one of the first microcredit companies and the sole foreign-owned microfinance company in China. German development bank KfW and the International Finance Corporation are joint shareholders with us there.

MC: What do you predict for the future of the microfinance sector?

FD: This is not an easy question. I view microfinance as a long-term story. I have fears about possible difficulties in countries where MFIs aren’t well regulated and there is insufficient transparency in the way loans are provided. There could be some regional bubbles, such as in India. I don’t see a quiet story for the future of microfinance, but rather some ups and downs. However, on the whole, I expect impressive growth each year.

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