The World Bank’s 25-member executive board on Wednesday elected former Mastercard CEO Ajay Banga to a five-year term as president, effective June 2. The election ushers in the India-born finance and development expert to revamp the lender to tackle climate change and other global crises.

Mr Banga, 63, was nominated for the post by US President Joe Biden in late February and was the sole contender to replace departing World Bank chief David Malpass, an economist and former US Treasury official during the Trump administration.  

Mr Banga had met with officials from 96 governments since his nomination, the source said. He visited eight countries during a three-week world tour to meet with government officials, business leaders and civil society groups, flying a total of 39,546 miles. 

The World Bank has been led by an American since its founding at the end of World War-II, while the International Monetary Fund has been led by a European. Mr Banga, who was born in India and spent his early career there, has been a US citizen since 2007.

While Mr Banga has built a long career in the private sector, especially in finance and banking, he has highlighted the perspective he could bring to the job from his upbringing and education in India, as well as his commitment to climate science and his belief that poverty and environmental issues are intertwined. 

Mr Banga will take over at a pivotal time for the anti-poverty lender, which gives out about $100 billion annually. The US is among nations pushing reforms of multilateral development banks to unlock more climate financing for the developing world. 

Mr Banga serves as vice-chairman of US investment firm General Atlantic. Before that, he spent a decade as president and chief executive officer of Mastercard. He also held various positions at Citigroup, including as CEO of the Asia-Pacific region. 

Born in Pune in Maharashtra, Mr Banga holds a bachelor’s degree in Economics from St Stephen’s College, Delhi University, and a PGP (post-graduate programme) in Management from the Indian Institute of Management-Ahmedabad (IIM-A). In 2016, the Union government had awarded him the fourth-highest civilian award, Padma Shri.