This report explores the purpose-driven banking ecosystem and the different ways that financial institutions are carving out space for banking with purpose.
It identifies five different types of institutions offering banking services:1) credit unions, 2) community development financial institutions (CDFIs), 3) building societies, 4) ethical banks and 5) mutual banks (which are not yet trading). It argues that there is space for all of the players in this ecosystem to grow and that there are opportunities to collaborate and strengthen the collective impact of purpose-driven banking.
Conclusively, better banking is possible, but there is a long way to go. The Finance Innovation Lab looks forward to working with the community to build on this preliminary research, encourage and support collaboration across the ecosystem to overcome the barriers identified, and grow purpose-driven banking to help build a financial system that serves people and planet.
Today’s financial system is in many ways too large, too complex, and too removed from the real economy.