Last of today, so I'm presenting affirmative action and demand for schooling. Evidence from a nationwide policy. This is joint work with Ana Paula Mello from Howard University. It's very early stages, so comments are very welcome. So affirmative action in higher education has been adopted worldwide to mitigate inequality in access, in performance, in graduation. The economic literature has shown that these policies are indeed very effective to decrease inequality in college access, especially to elite universities and to high-return majors. But a much smaller strand of the literature analyzes how these policies adopted at higher education institutions impact students earlier on. In their educational trajectories, for example, how those university policies affect students, high school students' effort and human capital accumulation. A couple of theoretical papers show that the impact of affirmative action on pre-college human capital depends on how they change admission probabilities. So we know that if you create an affirmative action for a targeted group, it will increase admission probabilities for these targeted groups and you'll decrease admission probabilities for non-targeted groups. But the impact on high school students' behavior will depend to the extent of how affirmative action will change these admission probabilities and how students will then perceive the changes in their returns to pre-college human capital. On the empirical side, the literature has found mixed evidence on the impact of affirmative action on pre-college human capital decisions. Some has found positive effect, some has found negative effect, and it shows us that the design of the policy matters, the aggressiveness of the policy matters, the context matters, and the way we contribute to this literature is then by asking, well, does affirmative action in higher education affect high school persistence and demand for college? And we do so by analyzing a very large affirmative action reform that took place in Brazil in 2012. I think this is maybe the most aggressive quota reform in the world. I'm going to explain later. And this is targeted at students that graduated, that studied three years of their high school in a public school as a proxy for social, for low socioeconomic status. And we look at how this policy affects high school dropout, high school graduation, and college demand. So we use the take up of a national college entrance exam that we take in Brazil as this proxy for college demand. And to identify the causal effects, we explored both geographical and time variation in treatment intensity. So we explored the proportion, like the expansion of the proportion of college seats that are located to affirmative action quotas by municipality. I will get into details soon. And we also exploit, we look at how these effects are heterogeneous by type of school and by school socioeconomic status. So our context is Brazil. So affirmative action policies in Brazil started in the early 2000s. They, those are policies that were adopted by public institutions, both federal and state colleges. Those colleges, they comprise around 28% of total enrollment. But importantly, they are considered of being the better universities in Brazil. They are on average of superior quality than the private universities. Plus they are free tuition. So there is high competition for these spots of those highly selective institutions. And these affirmative action policies, they most often, they primarily, the group that these policies chose to target are those students that graduate from public high schools. It's really weird when I talk about this in Europe. They don't understand this, but I think for an audience of mostly Latin American and developing countries, we understand this better. So the government chose to target public schools because it was the easiest proxy for low socioeconomic status that they could find. And there are also always sub quotas destined to known white individuals, black, mixed and indigenous, because those groups are historically under representative in public colleges, especially in selective majors. So until 2012, these policies, they were a choice of institutions. So institutions decided to adopt by the way, they adopted different types of policies, different intensities, or there were some state laws that mandated state universities to adopt these policies, but there was no national unified policy in place. Until 2012, when the federal government approved what is called the quota law, Leiji Cortes, and it established that 50% of all spots in each major and in all federal higher education institutions in Brazil have to be reserved to students that started the three years of high school in a public school. And then there are also sub quotas for known white and for low income students. But here I'm going to focus on the quotas for this national, the broader group that is the public school students. So the policy was approved in August of 2012 and it started, universities had to start to adopt this national policy in their admission process up 2013. They had around four years to reach full adoption, to reach 50%, but they had yearly minimum quota requirements. So there is a large expansion. So this is the variation at the extensive margin that we're going to explore in this paper. So if you see, there were 94 federal higher education institutions in Brazil in 2012. So in 2012, a little over 50% of these 94 institutions already had some sort of quotas for public school students. But then in 2013, 100%, all univeral institutions adopted these quotas because of the federal law. And if you see, this line is for the state universities. They are not subject to this national federal law. So there's not much of a change here. And this is the total variation. So here is the share of college seats that are allocated to quotas for public school students in the federal system. So in 2012, there were already 23% of seats that were already allocated to these quotas for public school students. And this expands reaching in 2015, 48%, but like full adoption, it was in 2016 when they reached 50%. But then our data spans this time period. So basically we explore this shift here, which was mostly primarily due to the 2012 federal law. All right, so we know, we gathered the data, so we know how each university in Brazil was exposed to this national law. But here we want to understand how this policy adopted at the university affect high school students, high school students persistence, high school students take up of this college exam. So we don't know how each high school student is matched to each university because you can apply to any university in the country. So we have to create a measure of exposure. So what we do here is first, we create this measure of affirmative action exposure for municipality M and ERT, which is the percentage of total seats in municipality M and ERT that are allocated to affirmative action or to quotas for public school students. These measures normalize to vary from zero to one. So one is 50% of reserved quotas or full adoption of the national policy. And we also know from, we gather also, we have a administrative data of pre-reformed flows of students between high school and college. So we observe this theta. So for example, theta and M is the percentage of students that lived in municipality M during high school and then keep the students that stay in municipality M during college in a pre-reformed year. So this is the percentage of stayers. While theta M D is the percentage of students from municipality M that were attending high school in municipality M and that moved to college, to municipality D for college, also in a pre-reformed year. And we use this pre-reformed flows to weight this affirmative action measure of local exposure. So we create for each, for students that were attending high school in municipality M, the treatment exposure of these students is defined by this expression where the treatment for municipality M at time T is weighted by the percentage of high school students that stayed in that municipality for college. And then the treatment at any municipality D in the country is weighted by the percentage of students from municipality M that moved to municipality D. So basically we just use this pre-reformed flows to weight treatment happening at any municipality. We could do this by distance or anything like that. We try different things. But basically results are robust even to using only treatment happening at the municipality where the student resided for high school because 87% of students in Brazil attend university in the same municipality where they reside. So basically we do this, but this is robust to also not doing this. And in principle we can, when we use this definition, we can define treatment for students of any municipality in the country. But in practice, when you look at the data, there are many municipalities that do not send any students to higher education, to further higher education. So if there are zero students from high school at a certain municipality that go to further higher education, then these theaters are going to be zero. And then we don't define exposure for this municipality and then we cannot, those municipalities are not in our sample. So then our final sample is restricted to municipalities for which in the pre-reform year, students actually go to further higher education, okay? So then we estimate this equation where outcomes, so the outcomes that I'm gonna show you today are high school dropout and take up of this college entrance exam. So then why is the outcome for a school S at municipality M in time T? So our time period spans from 2010 to 2015, some pre-reform years and some post-reform years. So this AAMT is this measure of exposure that I just defined. DZ is a vector of municipality time varying control. So basically we have to control for the adoption or the expansion of the centralized admission system, CISU, the resilience note that also is being expanded during these years. We try also some other time varying controls like GDP and things like that, but our results are robust to not controlling for this as well, but the control for CISU is important. I can explain later. We have controls for school fixed effects and for time fixed effects. And our standard errors are clustered at the municipality level. And we weight this equation by school size. So our outcomes are at the school level and yeah. All right. Okay, so really briefly on the identification strategy. Our identification here relies both on the geographical and time variation in treatment intensity. So in the proportion of college seats, they are located to affirmative action. The way that institutions expand this policy in these years depend largely on already on the share of affirmative action that they had before the national policy. So basically we are relying here on a parallel trends assumptions that the dynamics and the outcomes between treatment and controls would be parallel in absence of the treatment. So in a previous paper of mine, that was my previous job market paper, what I showed, I also in this paper, I look at the effect of this quote expansion on the demographic composition of universities. And what I show in this paper is that the pattern of adoption of affirmative action by the federal institutions during this period is not correlated with pre-trends in the enrollments of low socioeconomic status students at this public universities. This means that these federal universities, the way in which they adopt, they expand these quotas in this period is not correlated to changes in their student body. So this is because universities are expanding the quotas because of the national law that is adopted in 2012 that externally mandates that they do so. So our identification strategy here relies on the fact that if universities are not adopting quotas due to what they observe in their student's body, it's very unlikely that they are adopting their expanding these quotas because of what they observe in the behavior of high school students in their municipality. All right, so, yeah, thank you. So, yeah, we show it more formally through a placebo experiment in the paper, but I didn't include it here. All right, so I have only five minutes. So let me show you some results. So this first, we have some results for high school dropout. So this is the targeted students, so students from public schools and these are non-targeted students, students from private high schools. So a full adoption of affirmative action of the quota law decreases high school dropouts for public high school students in 1.9 percentage points from a baseline of 18%. And it doesn't change dropout rates for students from private schools, which is important because in theory, we could also expect that the non-targeted groups that this group would have lower incentives to study, lower incentives because now they have lower chances to get to university. So in theory, we could expect this to goes both ways and it's important that we find zero effects in this group. So there is a positive effect on the targeted group but no negative effect in a non-targeted group. So there is a decrease in the baseline social economic gap in dropout rates by 11.45%. Then we look at this demand for public colleges that we measure through the take up of the national exam. So what we see is that for public school students, the targeted group, there is an increase in 4.2 percentage points in the take up for this national exam. But for non-targeted group for the private school students, there is a decrease in the take up for this exam in 6.9 percentage points. I'm gonna show you or tell you about our hypothesis about that soon. And then think my last slides of results. So this is just some of the heterogeneity, the most interesting one that I think. So what I show here is that for the results on the college exam take up, this increase for demand for college for the targeted group comes from students from low socioeconomic status schools. So these students before they didn't even take the exam to go to college and now, I mean, there is a large increase in this group. So now there is, we interpret this as an increase in aspiration. So now these students aspire to go to college and before they didn't even take this exam. While this decrease for the non-targeted students is concentrated among private school students from high SES private schools. And yeah. So what we show in this paper is that affirmative action in higher education can affect pre-college human capital investment decisions. So affirmative action in Brazil contributed to the narrowing of the socioeconomic gap in high school persistence and in demand for college for public college. So regarding these negative effects on demand for public college among the high SES private school students, we are still investigating this more. But we have in mind two positive effects. One is that these students are delaying college entrance now it's getting more competitive for them. So this is this demand for college right after conclusion of high school. It might be that they are going to preparatory courses. They're very common in Brazil and they are taking this exam. Anna, my co-author thinks that this is likely, but for me what's going on is this thing. Those students are being displaced to the private university. So now they don't even want to take this exam to attend federal universities anymore. I mean now those very rich private school students, they are just moving to the private universities right away. And for those universities, you don't really need to take this national exam. But we still have to connect data with the higher education data to really prove that this is what is going on. And what is also important is that we find economically significant effects that are induced by marginal short-term changes in policy intensity. So what we explore here are really year by year changes in the intensity of affirmative action during this period and we already find effects. And also we are working now on a dynamic specification in which we explore the timing of exposure of different cohorts to this law and then we expect to find even larger results. But what is important is that, well affirmative action is a very controversial policy in Brazil to today. But then any policy debate that ignore these facts, that ignore this positive effect on human capital accumulation may understate the benefits of these policies, also understand the costs. And so it's really important to have a full picture of how these policies affect different outcomes to really understand their importance and that's it. Thank you.


Alright, you're still watching Waze World Lindy Hoppe Day. It was established to commemorate dancer and choreographer Frankie Manning, who many people considered to be one of the main creators of this unique style of dancing. Now the day is celebrated on May 26th in honor of Frankie Manning's birthday. You said you mean Lindy Hoppe? No, I cannot Lindy Hoppe, but if you watch all the old movies, Dancing in the Rain, Singing in the Rain, Idle Hope, all those old movies in those days when we had real musicals, of course, Lindy Hoppe was a big thing, but I think this type of style of dance is lost. Is it? It is, yeah. It's very much a very vibrant style. It goes with the flow of the music. And it goes with the music, so I think the closest thing that I can think of in recent times, do you remember, what's his name's music video? Step in the name of love? Or Kelly? Do you remember the side to side? That kind of thing, right? But I think we don't have, this is the kind of dance today, that you probably have a themed event that you would have that kind of. I know weddings do the traditional, especially if, I see some Nigerian weddings trying to copy it sometimes, not the entire way, but the old school kind of dance. We have all kinds of steps, what's it called, electric slide, shuffle, the back arena, I mean all those kind of slides. So that's why I said that if you're going to do like a Lindy Hoppe, So you can actually do a themed party. Yes, so you would have like a theme party because it's that kind of, let me see if I get my errors right now. It's like the 60s, I think, where people had the short skirts with the socks and they're flipping the girls everywhere and all of that. That's some good aerobics. Yeah, indeed. Alright, so what did you define for yourself in these? Well, well, well. Confusion, discussions, fights, and people almost beating themselves. My headline says, FG, the federal government, declares May 29th a work-free day. The Minister of Interior, Raul Farah-Quashala, has in a statement today said that to Monday, 29th of May, will be a work-free day for all workers in the country to commemorate the inauguration of President-elect Bola Tinibu. Of course, and joining all Nigerians to continue to support and promote democracy through adherence of law for peace and all that wonderful stuff. What I like or what I found this story interesting is, it's not a public holiday, folks. It's a work-free day. Now, I've been in some interesting conversations in the last few hours where it's almost like two sides of the device. CEOs are like, we are going to open. Workers are like, woo-hoo, work-free day. So at this point, I don't know if this is strategic confusion or this is like, we don't want to add another public holiday because May 29th was official, then it moved into June 12th. So now we're coming back to May 29th for this event.  So you're subject to interpretation. Shall you work on the day or not on the day? We are shall working. See the CEOs? We are working. You just made my point. Yeah, you will be all right. I don't understand. We are looking for money. If you are telling us, work-free day. That's partly why they called it a work-free day so that you can't complain. Really? Yeah. No, I'm complaining. But I think, though, it's history that is going to be made for every time a new leadership is born in. It's almost like there's so much uncertainty. People are not sure what's going to happen. So it's actually supposed to be a day where everybody should be. The way the king was coronated in the UK, King Charles. Everybody came out on the street. They were excited, chanting and all of that. This is the kind of... No, I'm saying that that is why it should look like because it's supposed to be a day where people should be able to see their president being sworn in and all of that because it's supposed to be a day in history. So again, with all the drama happening with the military chiefs saying that if you have no business in Abuja, it's going to be a fight, a war zone and all of that. They should just let us go and be walking in our office and watching it from this angle. It is a trying time. Yes, it should be a day of celebration. It should be a day that we do commemorate actually. But I think that there's a lot of context behind this particular day. So you can sort of see everybody's version in terms of security, in terms of the tension, all of that. But I, on my personal note, just pray for a peaceful day. Absolutely. That's all we are asking for. I am. Don't go and do pass yourself on that day. So this story that I'm trying to understand, I think it just caught my attention, is something around manufacturers, saying that they have dead stock is worth a billion dollars. That's, you know, people first of all. Local manufacturers here? Yeah, local manufacturers. So it was said by the manufacturers, the president of the Manufacturers Association, I think of Nigeria, if I'm not correct, the director general of Manufacturers Association of Nigeria. That's Shegmua Jaii Kadri. He says, you know, what they are facing right now is, you know, we have stock of unsold goods that is worth one billion naira. You know, and this report was, you know, done at the end of 2020 by Bloomberg, right? He's saying that they can actually attribute this to the purchasing power, right? In the economy, right? Following continuous increases in inflatory pressures and, you know, and of course, why I'm actually even taking this story, because yesterday we had talked about how Nigeria has progressed, you know, under the president, right? So while we applaud some of the good things that the president, Mohamed Buhari, did, right, we need to understand that these are the realities, right? These are the realities of what we're facing as people. Now, this already means automatic loss for a lot of businesses, right? So when we want to channel, and I'm hoping that the new administration is really, really proactive when it comes to really being deliberate about a productive and a prosperous economy. Because again, there are so many things that shows the body language to say, okay, you know what, we really want to make money, like things that has to do with real, what's it called, enablement that would bring in forex, where we're exporting things. So those kinds of conversations is what we are really hoping for, you know, to change the status quo. For people that are manufacturers, how are their businesses being helped by the government? So being very, just be deliberate to make sure that, okay, we're not experiencing losses, you know, there are just so much that the government is doing in that direction to make sure that these businesses are sustained because these are the employers of labor. These are the people that are making sure that we don't have wholesome madness in this country because, yeah, I mean, they're able to absorb a lot of workforce. So let us make businesses, ease of doing business for them really good. I mean, I just hope to see, I'll give this administration or the outgoing administration one thing. A lot of work was done policy-wise, redrafting, changing policies, updating policies. One of the ones I think that came out sometime in the first quarter of the year, it was largely overshadowed by the cashless policy issues where I think about 27 different acts were all sort of reviewed and revised and all of that. So a lot of work has been done in terms of laying the groundwork. It's now just hoping that this incoming administration won't do the same thing that usually happens. You just come and sweep the slate clean and you say you want to start again and you take us back eight years. So I hope they can build on the foundation that's been laid because if you notice in the last few weeks the President has been signing all sorts of bills and all of that. So a lot of groundwork has been laid. I just hope that they take advantage of it and they make the right decision. Some of the conversations that I've had in the last couple of days centers around the fact that it might seem like as Nigerians we don't actually ask for a lot. If you take us in comparison to a lot of other countries we are only asking for the basics. We are used to looking after ourselves, right? Just make sure that you... Don't give me what I can get for myself. Absolutely. Just give me an enabling environment. Imagine in Nigeria... An alarming friend for myself. With 24-7 power you don't need to do a lot more because as Nigerians we're resourceful. We have the capacity, right? To create wealth for ourselves. So all we just need is really... And when I say enabling environment I'm not looking for bells and whistles. I'm not looking... Like literally just give us light. If you want to be kind add good roads to it. And we'll sort ourselves out. I'm telling you. And we'll sort ourselves out. So as a people we're resilient we're resourceful and I just hope that this administration really gets that and they can try and hit the ground running with a few things. Don't try to do everything. Just do a few things that really make a difference in the lives of Nigerians. Absolutely. A completely different story. Absolutely. Okay so on that note let's take a break. When we come back from that break let's discuss networking and we have our guests with us. Stay with us. We'll be right back.


Howdy guys, India Pixel here. And in this video, we are gonna go through the process of learning how to detect curvature and more specifically curvature along roads. So I wanna be able to find the outside and inside turns so I can place things specifically in this example. I'm placing the guard rails here on the outside of the turn and the signs on the inside of the turn. And this is really useful because now we have a full procedural system in terms of placing these things along the appropriate part of the road. So as the road changes and the curvature changes, you can see that the guard rails are updating and the sign placement is updating. And so really crucial procedural modeling tip to learn when you're making stuff for like Houdini engine and stuff like that. So with that, let's actually take a look at how you hook this up. All right, let's kick this off by dropping down a geometry node. And I'm gonna call this finding a curvature like so. I'm gonna hit enter to dive inside and then I'm gonna go and create a curve. This curve will give us basically the basis for which we want to find the curvature for. Something like when you're working on roads and stuff like that in Houdini. This is very, very handy. So just created a curve, turn on grid snapping and just a really rough curve just to test this out. And hit escape to get out of edit mode there. I'm gonna drop down a resample node and we are then going to resample this at a length of one. And I'm gonna set this to subdivision curves just to make it a little bit smoother. Some more road like, like so. And then I'm gonna go and add my curve directions to this. So if you haven't seen the other video about hooking up curve directions, I highly recommend you watch it because I'm just gonna use my preset for this. I really just wanna cover finding curvature in this particular video. All right, so I'm gonna select my preset. You can also pause the video and copy it from there. With that done, I'm gonna drop down a sweep node and we are gonna set this guy to the ribbon for the server shape. I'm gonna set the width to something like four and I'm gonna set my columns to one. Now you're gonna notice that the sweep node is gonna produce some really wonky geometry there. And that's because our curvatures aren't actually producing any proper directions. And that's because in the resample node, we need to go and turn on the tangent attribute and our curve view attribute. I'm gonna go and change the tangent attribute name to capital N. And what that does is it actually produces flow normals or normals that follow the direction of the curve. So currently it's really hard to see if you hit D on the keyboard. We can go into the guides here and increase our normal. You can see that we're getting these flow normals here. You can make it even easier to see if you drop down an ad node and we feed that guy in there like so. And we just say delete geometry but keep the points, turn on the blue display flag and now you can see the normals reach one of those points there. So it's pointing in the direction that the curve is flowing basically. So let's get rid of this ad node here and now we have some geometry to work with. This is great. So what I'm gonna do is just pump this guy over here and we'll just say something like out road. Cool. At this point, now all we wanna do is drop down a measure node and just take a look at the basics of producing curvature here. So I'm gonna put in the measure node there and we're gonna set this to element type of points. This is very important for this particular technique here to find the curvature. We're gonna then set the measure to curvature and I always use the Gaussian filter there. And so now to view the actual results here, I just enter with the measure node selected. And you can see that we're getting red for the outside and blue for the inside. So really, really cool way of quickly getting curvature, especially when you're working on things like roads. You'll notice that we're actually getting red though at the ends here. So we're gonna have to write a little bit of a Vexico to take care of that particular thing. So let's keep moving forward. Now that we got our curvature value, we can actually start to work with that value. So just so you know, the attribute is called curvature and you can see if you have the geometry spreadsheet open over here that it has put that attribute onto each one of those points. All right, so that's what we're viewing right here. So I'm gonna actually hit escape over here in the scene view to get out of the edit mode for the measure node there. And I wanna split this up now into two curves. I'm gonna use the add node for that. I'm gonna delete geometry, keep points, go to buy group and we'll say skip every end point. Now you can also get, you know, the horizontal curves if you will, if you do groups of end points. So in this case, I wanna put stuff on the outsides of the road here. And yeah, so I want these particular curves like so. So we can now go and visualize this ourselves. Drop down a wrangle node. I'm just gonna call this curvature colors like so.  So let's go and write a little bit of code here. So I'm gonna say at CD, which is just the attribute for color is equal to zero. So you can just set it to black by default. And then I'm gonna do if that curvature. So we say f at curvature, like so, if that curvature value is greater than zero, then I wanna set it to red. So I'm gonna say at CD is equal to 100 or red RGB. So there you go. So now you can start to see we're getting some colors now for the outside turns. Super cool. So I'm just gonna copy this little snippet of code here. And we're gonna paste this. I'm gonna say if you're less than zero, then we are going to be green like so. All right, so now we've got all of our curvature colors. Super cool. We also do need to take care of these little end pieces here. So let's do that up here. Here's a really slick way to do this. I'm gonna do, so basically my goal is to find these points first. Now there's something very unique about these particular points. Let me actually comment this out up here. There's something unique about these particular points is that they only have one neighbor, right? A neighbor being a neighboring point that they're connected to. If you look at every other single point here, it has two neighbors next to it. So we can actually look for that and that's what I'm gonna do here. So we're gonna just do int num nays. Now that's just a variable name I'm assigning it. You can call it whatever you want. We wanna use that neighbor count effects function there. We wanna get the information from the first input there or this guy right here. And we wanna do apt pt num for the point number. There you go. All right, so if our num nays is equal to one, all right, that means we only have one neighbor. I'm going to just put your curvature value to zero. There you go. So now it's just black. All right, beautiful. So with that done, now I wanna be able to determine like how much of the actual inside and outside curve I wanna keep. All right, so to do this, I need to convert this to line or use the convert line node. I don't need the rest length attribute. I tend to turn it off just so I don't have a lot of attributes in my geometry spreadsheet. You can leave it on if you want though. So I'm gonna do attribute promote now. So we are gonna then go from points to primitive. So I wanna take that curvature attribute from the point and put it onto the primitive. That way I can then feed that into a wrangle node and remove stuff based off some rules, right? So I'm gonna do attribute wrangle node and we are gonna then go and rename this to say remove prims like so. Cause that's exactly what I wanna do on this wrangle node and then I wanna go and find or I wanna create a new parameter here called minCurvature. So let's just create a new variable first and then do a channel float or float channel call this minCurvature as well just for the label. And I'm gonna hit this little button right here to actually expose it. And then we're gonna go over here. We're gonna say if the absolute value, let's put that inside the parentheses here. So again, if the absolute value of f at curvature is less than the minCurvature, then we wanna remove the primitive. So we're gonna say remove prim and zero for the first input at prim num for the prim number and one to remove all the associated points. So now nothing is gonna happen because we have our minCurvature set to zero here. So we just increase this slider right here and we can start to remove set. So you can see if we were to template our road piece here now we're getting just the portions where we wanna start placing assets. So if this were like a racetrack, you'd have like the bumpers on the inside and you'd have the guardrails or a fence or something like that on the outside. All right, cool. So remember currently these particular curves are still all separated out. So we need to fuse these guys back together. So let's do a fuse and polypath. It's a good technique right there to get your curves back into a single curve. So now when I turn on the display flag, you can see that we have single primitives here. Perfect. At this point, we pretty much have all the data that we need except for all of our directions. So we need to go and produce all of our normal directions. So we have the flow of the curve from the original curve that indicates the direction of the road and then also all the directions that face outwards from the road as well. So we can place stuff out there. All right, so let's take care of that. Let's do this here. And what we need to do actually to do this appropriately is we need to assign the original primitive number to this. So if we come all the way back up to the top here to our ad node and we turn on our print numbers you can see that we have the zero and one. Well, we need to actually record that or at least stash it somewhere. So I'm going to go and drop down a wrangle node and I'm going to call this set ID. And to do this, I'm just going to run over the primitives and say I at ID. So we're going to make a new integer attribute that'll live on the points itself. So you'll be able to see in the geometry spreadsheet. And I'm going to give it the prim num. And we're going to leave it on the primitives there. Cool. So with that done, and we actually need to spell this correctly. So prim num, there we go. Cool. So now that we've got that on the primitives we need to promote it down to the points because it'll get destroyed when it goes through this convert line node. And so we just do an attribute promote here and drop that down like so. And we'll say we want to go from primitives to point and we want to transfer that or promote that ID attribute. So we pump that through and go down to our last node here, the split node. You can see that this ID is now in the points that survived all this processing right here. Cool. So now we can split on that. So I can say if the ID here is equal to zero. So we're going to say at ID is equal to zero. And we need to set that to points. So there you go. So we've got one half on one side and the other half on the other side. So now we need to develop our normals, the ones that are facing away from each other. So I always call these the away facing normals. Like so. And I'm going to pump that guy into there. And this is actually relatively simple to do. We just need to get the position from the other side. Right. If I were to drop down a null node over here and take a look at the point numbers over here. So let's turn on our point numbers here really quick. So we have zero, one, two, three, four all the way up to 18 there. And we have the same ordering and the sorting over here on the same side. That is why this is going to basically work. Cause I can just grab the position from the other side. So I'm going to call this other pause. And this is going to be equal to point and one for the second incoming geometry there. I want to get the P attribute, the position attribute. And we want to do at PT num cause the point numbers match on both sides. All right. And we need to make sure that we spell correctly. There we go. And then finally we're going to say at n is equal to normalize. We're going to normalize the vector that is created by subtracting the current position of the point from the other position. So we say other pause. And there you go. So now we have normals that are facing outwards. And if we were just duplicate this by holding down alt and left clicking and dragging and then I'm going to hold down y on the keyboard to cut the wires. If we just swap the inputs here we now have the opposite effect. So we can just grab these two guys and then hold down alt left click and drag to create a merge node. You can see now we have the normals pointing outwards. Like so. This is really useful because then what we can do is we can use a peak node here, turn off the recompute point normals. And this allows us to then peek it outwards from the road. So we can place stuff out there. Very cool. All right. So with that we also need to produce the flow normal. And that's relatively simple as well because we actually get that value up here. So this is coming in from there. So if I turn on my normals you can see that we actually have the flow normal up here. And so really in this curve there's, let's actually put in a new vector attribute called forward. So V at FWD for forward. And that's equal to at N for now. So I'm just stashing it on the point there. And basically the reason why I did that is because now they actually survive all the way through the graph. So I have this forward vector here. And we can actually visualize that. So if I were to drop down visualize node by hitting X on the keyboard, we can go and visualize this guy. So we can go and set the class to point. And we're gonna look at the forward attribute. It needs to be type of marker and a vector for the style. You can see that we now have our flow normal. So we know that both sides are flowing in the same direction. It's just that this is the outside turn and that's the inside turn. Cool. So now we've got all that information all set. Let's just split it out into outside and inside curves there. And to do that, I'm gonna do at CD.R is greater than zero and set this to points. And that leaves me with just the outside turn. So you can drop down a null node here and we'll say outside curves and inside curves. And there you go. And let's just merge these guys together. There we go. And let's put down the color for this. So it's more like road like here. And we'll just do something like a dark color here and just template that by holding down control and hitting the template flag. And then just hitting the display flag. And now you can see if I turn off all my components here. We have the inside and outside curves. So that's how you find curvature. Really useful technique for procedure modeling. I use it quite often. So I hope you guys really enjoyed that. Thanks so much.


even more classical conditioning. I'm not sure which one you're watching first, but let's just do this one as delay conditioning because delay conditioning is awesome. Why is delay conditioning awesome? Because it's the most common type of classical conditioning procedure that you use out there. Most likely you will be using it to develop reinforcers. I'm gonna slow myself down a little bit here. Now, so the difference between delay conditioning and classical, why does this suddenly feel like a sales pitch? I don't know, but I'm gonna swipe my card for 1995. Alright ladies and gentlemen, for OERs, we are starting to sell you hard. So anyway, just give them away. I'm just giving these things away, but they're gonna come with something later. I promise we're gonna charge you for something later. I promise. But until then, you get all of this for free. Imagine what you get for free. Here's a story about classical conditioning. You ready? I think we're talking about good delay conditioning. So delay conditioning is simple. It's better than trace conditioning. Why? Because you turn the CS on. Again, CS, you're gonna turn that CS on. Take a look up here. But before that CS turns off, you're gonna turn the US on. And that talk about predictability. That's gonna make things predictable as all get out. I'm telling you. Alright, so that CS comes on, the US comes on, then they both turn off. They don't have to turn off at the exact same time. Really roughly, it works. Anyway, you got a little bit of a gap from the time that the CS turns on, then the US turns on. That's the delay. So delay conditioning, most effective of the classical conditioning procedures. The second most effective is probably trace conditioning, but I'd have to refer to the literature. And as we've already established from other videos, sometimes I screw that up, but I don't think I screw this one up. So please pay nothing for this video because it was a great one. Last time you go car shopping before we do videos.


Good morning. Shall we get started? Hi. You're lovely to see you all here on so bright and early in the morning. You're looking like you've all had a cup of coffee or a cafe con leche or something. That's great. So the the subject of our talk is FinTech financial technology and let me just start as I asked I'm based in New York and I did a panel like this in in the fall with a lot of sort of CEOs of FinTech groups and a couple of bankers and I called one of them before coming down I said hey, I'm gonna be doing this this conversation on FinTech in New York I'd love to get your perspective You know I'm doing it in Latin America. I'd love to get your perspective on the state of FinTech in in Latin America And he said hey, you know Rob. It's gonna be a really short conversation and and I said oh come on You know that can't be the case You know from what I can tell talking to folks some of you over the last day or so There are there is quite a bit going on in sort of financial technological innovation Not just here in Colombia, but but around Latin America But that said we only have 45 minutes. So it will be a short conversation anyway But like luckily we have a few folks here on the panel who can help elucidate us on this matter I've got two in the middle. I've Richard Eldridge who's the chief executive of Lendo Which has created a platform that enables banks and FinTech firms to effectively use non traditional data sources To measure creditworthiness, and we'll hear a little bit more about that. Thank you Richard Eric Prado to my left is Chile superintendent of banks and financial institutions So he can give us a pretty unique perspective on how regulators view movements in financial technology At least in Chile and beyond And Matthew Blake to my far left not political persuasion necessarily, but Is the head of banking and capital markets here at the World Economic Forum? And has spent much of the past couple of years actually shaping the way sort of opinion leaders look at this emerging industry all around the world But so let's let's address my my arrogant New Yorker Wall Street friends view First about the state of FinTech in Latin America, maybe throughout the idea, you know What is this? What is the state of FinTech in Latin America? What you know? Where do what are we seeing out there? What are some of the companies that you see out there? You know what FinTech is a pretty broad area, so we'll probably have to break it down a bit But let me start maybe with with with you Eric. What what are you in Chile in particular? What what are the emerging sort of FinTech firms look like? Okay. Thank you very much. Good morning to this wonderful audience at this early time and I would say FinTech is a revolution in evolution Revolution because it's quite new You cannot have a good comparison in terms of some new technologies like blockchains And we can talk a little bit about about that But also it's an evolution because everybody has to understood and they have to take the time to understood the new technologies I'm not only talking about the regulators because we're trying hard to understand also this new technologies But also the markets So we don't have to compromise for instance risk that are Inside this type of technologies like money laundering like financial The financial of terrorism and know your clients. So that's why this imposed a lot of challenges to the regulators The race that run the innovators at marriage much faster than the regulators We run other type of race. We run the boring marathon very stable long-term While the innovators runs 100 meters and they want to be under 9.58 seconds So we have to talk each other. We have to have meetings We have to be in this type of panels to understand what are the type of restrictions that you guys innovators and The regulators have in place and try to create an environment where innovation is allowed in many cases in Chile Some innovations because it's pretty new are not in our loss are not in our regulation so as a regulator I have to do my job and if these Activities are not allowed. I have to do something But on the other hand, I don't want to be an impediment for innovation So we are we are facing that challenge Today and that's why we want to learn from you guys also and pick your brains how to deal with that And Richard as you go around, I mean maybe explain a little bit step back explain how lendo works But you you've you know, you and I have spoken in advance of this You've seen a lot of these you've gone to a lot of different markets You know, maybe you can assess a little bit the state of play as well from Latin in Latin American And maybe contrast that with some of the ones where you're already active Sure, but happy to I think if you take a view of the FinTech I think and some of the other sessions if you attended them yesterday I think you see it's such a broad topic a bit like CRM was ten years ago And and it's hard to then define such a broad topic. And I think if you break it down into a few you see disrupting Technology companies ones that are competing with traditional institutions You know the peer-to-peers for example the some of the blockchain companies that are coming up now I'm doing remittance for example that they're really opening new sectors a bit like uber did or Airbnb did the sector didn't exist They're creating their own sectors You then get the enablers the ones that are helping Incumbent banks for example to get better to get more efficient So I think you see those two sides of things globally in terms of it I think you also get An interesting kind of you if you divide it into three areas I see one is helping especially around financial inclusion the last mile access Ultimately most people would like to serve it, but it's just not economic to do that today And using technology is a great way to allow people to do that Whether it's a disruptive technology a new company or it's an incumbent bank that needs new technology to reach it at a cheaper rate I think the second is identity and verification and kind of scoring You know again, there've been very traditional ways of doing it credit bureaus have been around for a long period of time You know KYC is a very manual face-to-face process How can you adopt new ways of doing this which are secure and safe? But at the same time and innovative enough to allow more people these access to these services If you don't solve that problem it just won't happen And I think thirdly you then have a new set of products and services that can be offered to these people You know you now can get insurance by the day Yeah, you get innovative companies that you know imagine you're at the bottom of the pyramid and don't know what insurance is It is the hardest thing to sell in the world insurance because it's for a future event long long time away No one wants that they want, you know instant recognition So innovative companies for example if you maintain a certain minimum balance in your account Either on a mobile phone or on or in a bank account You automatically can get a small Small amount of insurance and this is sometimes the first time that people will have insurance And this is a unique customer experience that now you can actually take forward and run with So I think that's kind of that's how I'd break it down what we're seeing around the world in those different areas But specifically I mean Latin America are you is it you know, you're based where in the Philippines and I spent my time between Asia and and kind of the Americas I think what you're seeing here is Is it was slower to take off here? You haven't seen the scale that you've seen in some countries I mean I think if you see most of the fintech scaling companies, they've been in the u.s Um, you are now seeing that in India To a rapid side you're getting you know the numbers and volumes of what you're seeing of the of the fintech disruptors are happening You've got lots of companies all over the world doing little bits of disruption Which is very hard for regulators because they're popping up and no longer does it take three years to design a company and and you know about it Literally two people in a garage pop up and oh they're there the regulator now has to know about them The other side of it is the banks and i'm seeing that the banks here are getting very very aggressive at digitizing their entire End-to-end value proposition They're looking at this seriously and investing big sums of money. I was just in brazil earlier this week and Some of the biggest banks um there are being the most innovative You're going to see this really interesting fintech spectrum over the next few years When some of these banks are now going to be competing with these disruptors And we're going to see what happens, but ultimately I think the end consumer will win It's created competition that hasn't existed today And these new players have made the banks think harder about how they how they become competitive Rather than just competing against themselves. They're now having to compete against the other guys So i'm seeing a rapid adoption of the the big players the small players lots of them cropping up But not so many getting traction I'd say mexico would be the country with the most traction and followed by brazil Right, matthew. I mean you've looked at this all around the world. I mean, what have you seen and and I sort of correlated that is Can Can these fintech players be regional like or country-based or are we going to have winner take all type uber Um, which richard just mentioned that sort of can hoover up the whole thing across the globe I think it's a fundamental question.  We've had the chance to talk with incumbents So traditional financial services providers the fintech guys globally Many of the academics that are focusing on this space and more recently We've been working with the regulatory communities because that is the evolution of where we need to go from a kind of an intellectual and thought process Um, we found interestingly at the outset that there was little to no common taxonomy around this space So our first step was actually to divide the world, you know Look at these various components of innovation divide them into clusters Correlate those clusters to different aspects of the financial services system from a function perspective and figure out what's going on And what we saw immediately was, you know, if you're a venture capitalist, this will come intuitively to you But where there are frictions in the system And where there are large profit pools now, but also perhaps in the future is where the opportunity set lies um If you think about traditional players in the financial services ecosystem Like banks One of our main hypotheses from our first report and our first analysis that came out last year on this Was that banks in the short to medium term Are feeling much more of the acute pressure from innovation But in actuality over the longer run and this might be interesting to some of the insurers in the room It's actually the insurance markets that we see as being most ripe for innovation and disruption Why do we say that? It's a function of nanotechnology. It's a function of wearables The plethora of data that we're creating around ourselves. Everything that we do is trackable How do you make more precise decisions around risk assessment? How do you view your clients in a way with much greater precision than you have in the past? Yeah, I mean that sounds like you just described an enabling technology though I mean which is interesting which is so that's you know When I think of it wearables and you think of you know, knowing if you're trying to manage risk Which I assume is what the insurance assures trying to do then this is very helpful I guess I guess that question. Well, how is it disruptive? You know, because yeah, I mean what I think what we've come to see And I I think this was well articulated Already, you know, there are opportunities to disrupt but many of the opportunities are actually for collaboration and partnership Um, I think a fundamental defining factor here is what is the technology at play? Um, we referenced blockchain earlier distributed ledger. I mean that that's a fundamental innovation Um, it's different than perhaps an amazing innovation in its own right. No slight at all But um, we all have our iPhones on us paying via the iPhone function that is using infrastructure That's already in place. I think there's a fundamental difference there You know creating something new that could perhaps settle securities in a more efficient matter in a more transparent matter Deal with contractual issues in a more transparent matter. These are all the things that distributed ledger slash blockchain promised to do over time But um, that is a fundamentally different. I think approach and mindset than what we're seeing Where we have technology that is more additive as opposed to completely disruptive But even even there I sort of think to myself not to play the devil's advocate so much But you know, if I'm a bank, you know anything that can reduce my back office internal friction costs all that kind of stuff Would be a huge benefit. Um, and Rather than a disruptive one and and so I I mean I come back to this view that I wrote this a meta year ago, which is that they'll never be an airbnb or uber of fintech Largely because the banks are going to snaffle up all the all the opportunity and because of people like Eric And which gets to regulation Which is no no my point being you know with with regulation is is got to be the biggest burden in in so many of these More lucrative markets of banking and finance Um, you know the capital requirements anti-money laundering all the things that you just mentioned before I mean, you know, how do you as a regular now? Okay. Chile is we should probably explain It's a slightly different situation because fintech's kind of outlawed But um, but uh, but but even you know, assuming you get You know, you know, there's some sort of law that's passed that you find some sort of equilibrium here How do you How do you make sure that you're not that innovation is not Being hampered in the industry for the benefit of the financial services industry and its customers You have to remember that the main objective of regulator is to keep care of financial stability And confidence in the markets. So that's why important all the type of the implementation of new technologies We don't want to be against innovations And we have a specific case that we have to sue the superintendency One company one peer-to-peer and lending company because it's not it's not allowed But at the same time we are trying to think how to set Standards for this type of industry So we are dealing I was speaking in this challenge that we don't want to stop innovation But at the same time we have to do our job It's very difficult for the regulator to know Which uber rmb is coming Because I will take that that place I wouldn't be in the in the superintendency You know what I mean? So so that's why I think innovators have to talk With the government have to talk with regulators and trying to set Tap standards that would put some norms in terms of these activities For instance, I I learned a lot about blockchain as you mentioned And it's an incredible technology an incredible technology I think some homework that we we have to do At least this audience and the people that are watching us Is that blockchain is really revolutionary Blockchain is very well known when we talk about bitcoins But this can be applied to anything You can reduce cost you can be more efficient You can have a a lot of Increasing in safety So but impose also a challenge for for regulators So that's why some jurisdictions some countries some Regulatory institutions around the world are trying to kick back With innovations and put something together Where both the private sector and the private sector are talking about these new technologies And I think this is a good example to be applied in latino america.  It's it's given me a living I mean, are you kidding? That's it's been the greatest thing ever for financial journalists No, but I mean with all of these All of these priorities, I'd imagine like trying to figure out how some little guys who do p2p lending You know, or it's got to be a low on the priorities chain, right? I mean The the problem is that for instance in the case of the peer to peer lending You have the money. I don't have the money And we want to erase the middleman the middleman bank You gave me the money you hear that bankers. I do I do whatever I want with the money and then suddenly we have a recession Right and I cannot pay you back Who is going to be the culprit of this? I'm not going to be the culprit You know who is going to be the culprit the regulator Because where is the regulator here? And that's the problem and that's why we have to keep confidence in our financial system With standards with regulation and with norms There is a good reason to to do that and that's why impose a challenge for everybody. So Richard you As part of lendo's sort of mandate, you also have the site you have a social impact mandate To create financial inclusion. Maybe maybe you can explain a little bit how that Falls into this. I mean, and this isn't just about for you necessarily about making money or you know becoming the next you know P2P uber p2p whatever you want to call it You're also trying to connect as as eric saying people don't have money with people who do have capital and and that's You know, obviously in the benefit of it of the sort of social good Explain how that works and How you how they uh, yeah, yeah, sure. So so I think you know I've lived in developing countries for the last 20 years of my life And and I came across an issue that there was this this friction as matt said in the In the markets wherein, you know on one side financial institutions were saying I don't have enough information to make a decision about giving a product or a service to an individual And the individual was saying I want this product or service Um, this was and you can look at that around savings insurance We we focused on the credit side of the market where people were looking for funds to set up a business get better education Help out with a medical emergency because they hadn't got insurance And and we sat we you know when you look at it and we then reviewed Um, what is this information and and the information was credit history And credit history is based on your previous transactions And if you look at how many people in the world have never had credit in a formal environment and it's never been captured That billions of people And when you take a step back you then say well if you can't get credit because They don't have any information Let's let's look at other avenues to look at potentially. Um, so we said well It's really interesting because all these people are the most digitally connected in the world Yeah, they actually have mobile phones now smartphones most of them or or they will in the next five years They have email accounts. They have social media accounts. They're on the internet. Um, can we use technology To be a disruptive element in allowing this access to them So we we created a platform that allows people to connect the different accounts With their permission Because privacy is critical to us and then offer different products off our platform that allows that So, you know, one would be credit credit scoring product that allows either banks or other people to be able to To use that service and and we work with regulators We actually go to the regulator and say this is a new way of doing things Can we work in a sandbox environment where we can test it? How do you want it tested before just going and doing a lot of this thing? I think that's very important Another one we're working on is kyc, you know, you know in a lot of countries we operate in and south america included Um, you know, the average person may have 10 dollars in their savings account And if kyc is going to cost you a dollar Yeah No one's going to serve that market and if the regulator in america is going to find you a million dollars If you don't do the kyc in some rural area and in one of the other smaller countries This market's not going to get served.  How many times have you done that in the last year? A lot of times So imagine people that don't even have that identity if you could they might even leapfrog this process You can take an id using different forms of data they exist And some of our tests we've been doing with regulators have actually proven We're even more accurate than traditional forms where you can buy an id sometimes for a very cheap amount of money And and and use that to again reduce that transaction cost So those are kind of some of the things we do and and how how we work So what you described is sort of interesting because it's you know, this that the idea that you can That people will be using their phones to find credit And blockchain will be the enabling technology that allows you know for them to to the technology to work Right, which is so it's both. I mean this sort of gets I mean Matthew. Maybe it's worth thinking about What are the different? You're just stepping back the sort of use cases here, you know for I mean really broadly I mean, I think Richard hit on a couple of them all at once, but maybe it's worth thinking about that and then maybe Where are you seeing? Let's forget Silicon Valley and Wall Street. Where are you seeing those kinds of innovations coming out? You know markets. I'm gonna hit on three things. How about that? I want to come back to those This notion of a sandbox I think is critical and we've seen it work very effectively In places like the uk which has a I would say a national mandate to allow for fintech to proliferate Benefits in cost reduction There's an inherent benefit in greater competition greater access to capital etc etc and there's that's really the mindset there A sandbox is essentially an environment where you deal with some of the complexities the trade-offs that you have to focus on every day Which is not to extinguish An entrepreneurial spirit, which we all recognize here is fundamental to economic growth It's finding a an appropriate balance. Hopefully to where you can test something Right in a controlled environment See how well it works you get familiar with it. It's a technologist and others get familiar with it and then you scale So it's I think it's a very practical approach to dealing with an extremely complex set of sometimes conflicting interests and priorities The financial inclusion side Is fundamental to this topic We had the great pleasure, you know that the forum again works with a lot of different stakeholders we work very closely with the IMF and the world bank on many different issues and I'm going to be front running a report that we're issuing We're hoping to issue this week, but we're looking like more next week. You're breaking news here. Yeah, I know I'm breaking news You're loving me.  I know So this report looks at merchant acceptance of electronic payments And I'm going to quote some numbers which are In my mind mind boggling Okay, the first is $19 trillion that's trillion with a t That is the total amount of cash And paper meaning check Transactions conducted among mom and pop stores globally mom and pop the more technical term Micro small and medium-sized enterprises 19 trillion Let's talk about latin america and the caribbean 2.3 trillion dollars cash and check columbia 123 billion dollars 500 of these mom 500 thousand mom and pop shops in this country alone If you think about the benefits that we've talked about of dad aggregation if you're a business owner Greater inventory management, you know your customers coming in and out less cash On your books less inherent cost and moving that around and keeping it safe How do you access how do you provide an incentive? To retailers to pick up on this technology and it hasn't been an easy sell It hasn't been an easy sell And how do you do it and this gets to this notion of where we're seeing pockets of innovation? I'm going to talk about mexico in a second Is through offering bundle products that couple couple not only the point of sale But also the data analytics And the way to tap into the entrepreneurial mindset of a mom and pop shop is to say, you know Yeah, you have to pay with the card and that can sometimes feel a bit confusing cash is very tangible cash is very easy to understand You've used it forever But he already don't always see the cash That a hurdle a hurdle um But the bottom line is if you can make a holistic business case For a small to medium-sized enterprise to go that way I think it makes a lot of sense Let me just finish so so a vendor would offer that I mean we're just trying to think like just so mom and pop So is this a pepsi comes in and says here's how it's going to work and This this is exactly where i'm going so mexico Three core actors again a great example of collaboration here Three core actors grupo bimbo. Everybody knows that I major consumer good store bakery Friday Goods You have mastercard And you also have A group a fintech group, which is very interesting called blue label Now grupo bimbo has a huge network of salespeople deals with retailers all over the place So the the brilliance here is how do you serve the people that are way out on the fringe? How do you get to them in a cost-effective manner? All these sales guys are going there anyway, so let's create a partnership So blue label works with grupo bimbo and their salespeople to deliver and entice Retailers with a point of sales device plus plus plus all the data analytics the inventory management technology And the benefit is for everybody group of imbo has to deal with less cash The retailer at the end of the chain deals with less cash It incentivizes Customers to say wow i actually have to get a card So there's this trickle through effect And you're leveraging let's say an infrastructure that's already in place to make that access happen And it's those type of examples that we're seeing all over the place that technology is permitting and it's extraordinary Interesting so eric i mean do you could have could have blue label do that in chile today? To be frank i hope so i hope so because you're looking like you're the bad guy here in in this panel And and i you know what i'm here i'm this panel because i want to learn How new technologies could be adapted cautiously in in the countries so so that's why we We think we have to to push hard that agenda And i think created this type of sandboxes in every country in latin america that we are really good ideas So i'm trying to to do so so in in chile I guess i so a blue label. I mean i don't know where they from are they a mexican South africa south africa which is fascinating in and of itself right that it's that it's i mean i get a couple of thoughts is You won the idea How important is venture capital to the sort of fostering of local startups or fin tech sort of companies and and in in the absence of venture capital does it just mean banks Finance everything and therefore the innovation Doesn't mean banks can't innovate but that the innovation is is contained and doesn't have that Opportunity to go across the world like a blue label. I don't know who wants to take that Maybe i'll just throw out something that that's Really been stark and struck us in these conversations that we've had There are really three core things right to create an enabling environment for fin tech. I think that's a fundamental question You know one is Really from a policy perspective you have to have a stable tax Authority and tax system right if you're an entrepreneur you need to understand the rules of the game You have to have the legal structures in place. You have to have stability at a governmental level the second piece ties in exactly to what you're talking about is You need you know what we've seen the states is a very flourishing and strong vc community That invests because they've lived the entrepreneurial experience And they're not only throwing money. They're also throwing guidance, right? They're nurturing That's a really critical element to success The third piece I would say really ties in fundamentally to the education system the local education And the way that the pedagogy and the structure encourages an entrepreneurial spirit in students I think that's that's really really important and maybe last one other thing that comes up from time to time But a regularity that I think it's important to mention Is the risk appetite, right? Culturally you've got to be in an environment that actually understands if you fail You know failure it actually is an option you learn from your failure Hopefully get back up and try again That type of perspective is not omnipresent It's really kind of local sometimes Yeah, and Richard, how did you guys fund lendo? OBCs, which are interesting. In the first place comes the atrito In the second place comes the size of the opportunity That's what they're looking for. If this exists and you can have good companies With good directions. If you add emerging markets Then the pool is smaller. So FinTech is an emerging market Many people don't have the data to do that But now we already have a lot of money BICI, the risk capital We're seeing Africa, you see these funds there We're seeing a lot of money that comes from Japan to Singapore Looking at FinTech in the Asian region We're seeing it here in South America I think we're seeing this And that's what's going to continue Because there's still the atrito and there's still the big opportunity But still, people hear the stories of success in the United States And try to replicate these models in developing countries This cascade effect This won't prevent the banks, looking at the banks And I have the privilege of traveling the world Each bank with which you read has an innovation team Within your organization Some of them report to the CEO And some of them are very low in the organization If this is right or wrong, we can discuss it But we're seeing the speed of some banks With the JP Morgan or Citigroup, for example There are big teams that dedicate a lot of capital Up to 20, 50 investments Some are partnership investments Some are capital risks But they're betting Yes, they're internally establishing their teams Funds investing in FinTech Almost everyone has a partnership agreement With incubators in the countries All of this is happening at the same time I think, therefore, that the capital risk money The VC will be there, there's the FinTech bubble People are talking about it But I think it's good to talk about it Some things that we saw in the United States In the last few months The issues of loan clubs And issues that appeared on the peer-to-peer side But I think a community of FinTech is stronger And many things can be on the side, but it's healthy But Richard mentioned some of the things that emerged in the United States Eric, I wonder To what extent does this instruct you? Thank you very much for being here To be part of this conversation But you are saying That it's good that we're not getting into this yet Because there's a lot of opportunity For things to go wrong Yes, we have to remember That we still have challenges In traditional technology Let's say, the scheme of traditional technology I mentioned, for example That it's important to have all the data Consolidated from the debt side Now, in Chile, in Varejo We don't have this information We only have the banking system But not the Varejo system Which is complicated Because you want to increase the loan process You are looking at the financial demonstrative You only see a part of the passive And not the whole square We have to, first of all Build up to the first To walk around like this And then add more That's why we have some challenges In the traditional economy But at the same time We have to be updated With the new technologies Someone has a question For the members of the panel We have a microphone There's a question Tell me your name I'm Daniel Melina From the Persperse Lab How do we create an environment In which the informal economy Is bigger than the informal economy In Mexico, where I come from Everything that has to do with Taco, tequila, vitamin T Is made with Live money How do you incentivize suppliers To include So include in an environment When, as you mentioned Distributed authorities Will know how much money you have And you can't Protect that technology Who wants to risk Answer that question Well, let me start I participated in a panel yesterday Talking about this specifically We talked about The centricity In the client One of the important things Is to change Anything difficult People naturally don't want to change What is the event that Can Take people to do this Especially when they think About the Tributary issue For example, Uber One of the biggest reasons For people to use Uber In developed countries Is that you don't have to pay In money But you need a card Without a card You can't use Uber And you can't have this experience You don't get the benefit I know that Uber In India, Philippines, Mexico And Santiago are receiving Now it's very important To see what you can do For these people To improve their lives One thing, speed Can you do the fastest transactions With the client You can drag, have a fidelity system What do I have to gain With that If you start doing that You can encourage people And share the experience with others To do the best But it's hard It's going to be hard to change As a regulator Eric, you have You have All the laws in the bank Tributary laws Are not your daily work But you have to be part Of the general picture That you have And today, for example We're talking about shadow banking These Parallels Of the banking system That has to do with shadow Is the shadow That isn't regulated It's partially regulated So, this With technology, you have to accept And at the same time You have to propose an infrastructure For example, if you don't have Agences No sales points In local stores It's very hard That people can pay With a credit card But I want to say one thing About this, because in Chile We are making a great effort In terms of financial inclusion This is the new Situation for you 98% of the adult population Has some type Of bank instrument 98% Which is a lot And one of the Points that led to this change In Chile, recently Was the debt card Of a state bank So now, everyone Of 15 years Or more, has a debt card Associated With social security Social security This imposes a good thing In terms of Payments Of course, you have to have A good infrastructure In your community In your neighborhoods But you have to have a correlation Between new technology And infrastructure We have another question here Well This is a question That received an award In Panama By the Economic World Forum And in that network We developed a network That is called Efecti Which is for Cash transfers, etc We have been Listening to all your discussion And I think That we have to give more weight To the network Here, for example, they call us Low-value networks And we say we are a high Strategic value network So I would like for you To give us some feedback in that sense And we're also working Trying to get everybody To be a part of the system With debit or credit cards or something But we also have to think That first comes first And we have to raise The income level of the population Because there's many people Who during the day They shoe, they do shoe shining Or they sell Fruits, how can they Get a debit or credit card Well, Efecti has done a lot Of progress there But in fact We are beginning to Look at the option of Corresponding banks And we haven't gotten Just don't match We have not been able to We have not been able to find a way To handle the money coming In and out of the network And this is an effort That is not well-valued in our society Yet we would love some feedback And we would like to know how we can cooperate I'm going to answer that question In Spanish, out of respect for the lady In the Chilean case Especially the largest banks Have made an effort, a significant effort To set up Correspondent banks In neighborhoods And in communes And there's many Mom and Papa stores That sell in the neighborhoods And they also give you The possibility of doing banking transactions And that has Had a significant Impact in terms of bank inclusion But the problem That we have not only in Chile But in the rest of the world Is that we have included Financially many people But people don't quite understand What it means to have that Responsibility to And so when we see The delinquent rate The delinquency rate We see that the highest Are among the youngest users In a credit card But they don't know how to use it really And that is a problem For persons, for families But also for governments and for businesses So when we talk about Financial inclusion That has to go hand in hand With financial education Otherwise we're creating a problem We have to finish But I don't resist the temptation One last question You know, the way When I think of big data I think about one, how do you create a data trail I think about the exponential Growth for all of us In terms of what our Digital profile will look like today Vis-a-vis ten years from now And it's an exponential curve I think loyalty Is one of the incentives That's required to entice people To transact digitally And I think it's a fundamental Part of the equation for success So on that note I want to thank My panelists and thank you all for Your undivided attention Enjoy the rest of the day