social learning: Fiare Banca Etica case Coruña 8 Junio 2016 Peru Sasia Universidad de Deusto – Fiare Banca Etica

Driving forces: politicalA deep (political) thinking about the Right to Credit (when, how, who…) citizen-basedA (citizen-based) demand to assume responsibility about effects of own money deposited in banks Credit as a common good? Money (liquidity) as a common good?

ROLE OF AN ETHICAL BANK: common good cultural, social and environmentalWork for the common good, reallocating funds in the form of credits for cultural, social and environmental projects. PromotePromote social inclusion, sustainable development, development of social economy and social entrepreneurship. Raise public awarenessRaise public awareness on the role of money and the failure of the economy based on short-term and profit as the only objective.

“ORGANIZATIONAL DNA” Dense cooperative network: Participation and Co-responsibility On-line and face to face continuous interaction Networking with other allied agents (university, administrations, trade unions, civil society…) Not only intermediation, but a System ==>

INSIDE A SYSTEM Engaged with cultural challenges (growing seeds) Advocacy. Political “contamination” Para-banking activity to face "non-banking" credit needs De-centered solidarity: effects of activity mostly outside cooperative Multipliers of solidarity – reciprocity – cooperative based experiences: co-housing, fair trade, social insertion, agroecology…

INSIDE A SYSTEM “Prima etica”: people looking for social interest, accepting rate interests that are not “best in class” against our individual – private economic self-interest (What a cultural revolution!)

A DIFFERENT BANK A cooperative bank operating in Italy and in Spain Owned by a movement of citizens and social organizations Inspired by the principles of Ethical Finance: – transparency – participation – austerity – efficiency – awareness of the non-economic consequences of economic actions

A DEMOCRATIC BANK Since it is a “Popular bank”, the principle “one head, one vote” rules in the General Assembly that elect the main corporate bodies Banca Etica is free from the influence of politics and economic-financial power groups: the members are citizens and organisations 87 groups of active members in Italy and Spain guarantee: – the development of local relationships – the promotion of ethical finance's culture – contribute to determine the strategic orientations of the Bank

BANCA ETICA PAST AND PRESENT

THE BIRTH OF BANCA ETICA The idea of a bank inspired by the principles of Ethical Finance started at the end of the 1980's and was realized in the “Cooperative Towards the Ethical Bank” (1995) that collected 6.5 mln € from citizens and organizations On the 8 th of March 1999, the first Banca Etica branch opened in Padua (North of Italy) Simultaneously, Fiare Foundation was promoting since 2003 the creation of the dense network of people and organizations in Spain In 2013, Spanish socii joined to the Italian social base to create an international credit cooperative

BANCA ETICA TODAY Banca Etica works in Italy and Spain through 5 territorial areas: North East, North West, Centre and South of Italy, and Spain. Every Area is managed by a Forum composed by a member of the Board of Directors, a sales manager, a cultural Manager and a representative of the active shareholders. PAST AND PRESENT

A DIFFERENT BANK

TRANSPARENCY It's the main condition for the responsible use of money We ask customers to sign a declaration of sharing the principles of the Statute and of conformity of the origin of their money to these principles We are the only bank to publish on the website all the loans granted to legal entities We deliver accounting reports on our activities according to the economic, social and environmental aspects in the Integrated Report and Online Sustainability Report, that allow direct interaction with our stakeholders A DIFFERENT BANK

ETHICAL GUARANTEE The ethical guarantee and the respect of the principles outlined in art.5 of the Statute are monitored through appropriate tools and supervisory bodies: the Ethical committee the Ethical code the Supervisory body the Social Value certification A DIFFERENT BANK

ETHICAL GUARANTEE: THE EVALUATION OF LOANS The economic investigation is paired with a social and environmental assessment of the loan applicant. This evaluation is based on parameters such as: democratic participation transparency gender equity respect for the environment and working conditions ties of territorial proximity The evaluation is carried out by Social Evaluators, active members entered in a special register following a training course. CREDIT POLICY

THE TERRITORIAL INITIATIVE GROUPS GITs are groups of voluntary members who act in their communities to: promote a culture of ethical finance participate in governance choices connect the Bank's activities to the needs of their territory create relationships with the social and solidarity economy support the economic investigation activities with the social evaluation of the loan applicants through the Community of Action, collaborate with branches and Itinerant bankers to reach the operational and cultural goals A DIFFERENT BANK

CREDIT POLICY

WHO WE FINANCE With the collected savings, we mainly finance: social cooperation international cooperation environment Culture We add to regular banking an intensive work on para-banking activities: Microcredits: Since 2001 we have approved operations for 20,6 millions of € Crowdfunding CREDIT POLICY

NEW ECONOMY LAB Doing ethical finance also means knowing how to interpret the changes in the economy and to listen to the needs and innovations of those who experiment new sustainable models of development and enterprise. Since 2012 we promote the New Economy Lab to meet enterprises, the academic world, Third Sector organisations and connect between the profit and non profit initiatives which are able to combine economy, finance, community, relationships, legality, mutuality and ethics. SPECIAL PROJECTS

BANCA ETICA'S NETWORK

FCRE Cultural Foundation for Ethical Responsibility: works at the national and international level with promotion, research, experimentation and training activities pertaining to the relationship between ethics, economics and finance. Main projects Campaigns: "armed banks", “Not with my money”... Novo Mondo, event in Florence dedicated to sustainable change, born from the experience of the conference-fair Terra Futura International congress promoted by the Spanish Solidarity Economy Network Active Shareholder initiatives Finance and Legality Observatory BANCA ETICA'S NETWORK

FEBEA It is the European Federation of Ethical and Alternative Banks, a non- profit organization under Belgian law founded in 2001 by Banca Etica with Crédit Coopératif and Caisse Solidaire du Nord Pas-de-Calais (France), Crédal and Hefboom (Belgium) and TISE (Poland) for the development of ethical and solidarity-based finance in Europe. Today it includes banks, financial cooperatives, investment companies and foundations which cooperate for the exchange of good practices and the realisation of financial tools. INTERNATIONAL ALLIANCES

GABV The Global Alliance for Banking on Values is an independent network composed by the main banks around the world who operate on the basis of the principles of ethical finance. It was founded in 2009 and today has 25 member banks who operate in 24 countries. The member banks share research, training and lobbying activities. INTERNATIONAL ALLIANCES

FIGURES

BANCA ETICA IN NUMBERS SHARE CAPITAL€ NUMBER OF MEMBERS SAVINGS COLLECTION€ LOANS APPROVED€ NUMBER OF LOANS8.074 NUMBER OF WORKERS269 Updated on 31/12/2015 FIGURES

What have we learned?

technology is used, of course (internet banking, blogging, crowdfunding…) FACETO FACE but we like (and we need) FACE TO FACE activity as a much more efficient way to create solid, stable engagement. PROCESSlet’s imagine the HORIZON… but also the PROCESS! GOVERNANCEGOVERNANCE is so important… (rise and fall of public banks)

The problem of CAPACITY How can we create an alternative able to orient financial intermediation towards de construction of better societies? Lessons learned

our challenges CAPACITY CAPACITY : Knowing (touching) the real world Integrated with other collective agency strategies Non-profit Lessons learned

The Problem of LEGITIMACY How can be recognized as a reliable option by citizens and social organizations? Lessons learned

LEGITIMACY LEGITIMACY : Positive Prescription Public Administrations engagement Offer real solutions through credit Lessons learned our challenges

The Problem of MOTIVATION alive How can we keep the project alive as a collective action dynamic? Lessons learned

MOTIVATION MOTIVATION : Vicinity to real problems of real people Information, participation, transparency Be part of something bigger (Solidarity Economy) Coordinate financial response with other strategies Lessons learned our challenges

The Problem of VIABILITY How can we consolidate a sustainable project (also economically) without losing identity? Lessons learned

VIABILIDAD VIABILIDAD : Social Capital Financial Activity Austerity Reciprocity & Cooperation Lessons learned our challenges

Can you help us?

How can we reach middle-class, “average” citizens?

Board Member since (average): 14 years Mean age: 50 years Our social base is getting “mature”… do we have something for young people? (they do not use banks!!)

We are but… the real meaning of participation and strategies to promote it Social Base Sociocultural impacts Local groups Savings (mill €) Credits (mill €) Customers Followers twitter Vistis to website Subscriptions (Newsletter) Last GA participation (3 locations) Padova: Madrid:400 Cloud:1.000