Financial Inclusion and Social Finance
ADFIAP CEO Forum VI
“Leading the Recovery: Environmental, Social and Governance Imperatives
Oct 29, 2009 Manila
INAISE: International Association of Investors in the Social
Money as a tool for change
Making sense with money
Sustainable finance for a sustainable world
on 5 continents & 30 countries
Banks/ credit providers / MFI’s /
Created in 1989 and grown together with the movement
of social investors gaining importance, volume and
visibility in Europe and outside.
In 1992 a secretariat in Brussels
In 2008 the conference in Quebec (Canada), approval of
a charter and decision to go more global, worldwide.
Our members have financing track record in
- renewable energy
- co-operatives and (non-profit) community enterprises
- fair trade, small-enterprise start-ups & micro-credits
- health and social care, cultural and education sector
Definitions “social finance”
an approach to managing money that delivers a
social dividend and an economic return.
includes community investing, micro-lending,
sustainable business and social enterprise lending.
includes outcome-based philanthropic grants and
some social investors even try to affect an
environmental return, referred to as “PPP”, people,
ILO (International Labour Organisation) definition
Social finance is using financial instruments to
promote Decent Work.
It means finance - sustainable finance - with a social
It is about credit, savings and other products that help
the poor to cope better with risk, take advantage of
income-generating opportunities, organize and have
Also about promoting and encouraging those
institutions that cater to the financial needs of the
working poor, including women groups and SME’s
that create jobs.
Also about financial sector policies that set incentives
to open up the financial to the working majority and
create an enabling environment in which MFI’s can
= the delivery of banking services at affordable costs
to vast sections of disadvantaged and low income
Unrestrained access to public goods is a sine qua
non of an
open and efficient society and human development.
As banking services are in the nature of public
availability of banking and payment services to the
population should be a prime objective of public
A reaction to financial exclusion
// micro finance movement (Progress Out of Poverty
Not only an issue in « emerging economy » countries
Not only an issue of micro-finance
Financial Inclusion Observatory www.fininc.eu
European Commission . http://ec.europa.
European consumer debt networking.
United States of America
House of Representatives http://www.epi.org/page/-
Community Development Credit Unions
Triodos Facet - sustainable SME development advise
Institute of Social Banking, Frankfurt
development banks & social finance financial
inclusion & environmental imperatives
can go combined
Profit, People, Planet
« Impact » investment
for ex. renewable energy community investment
Coalition of Socially Responsible SMEs in Asia
(CSR SME) (http://www.aa4se.com/cms2/forum )
Importance of overall finance and bank environment
Ecologic diversity // sustainability
Bank diversity for a sustainable finance development.
- Keeping a not too high compliance burden and costs
small / medium and micro “banks” .
- Legal frame for local savings & insurance for MFI’s.
Payment (clearing), ATM and general ICT
infrastructure to be developed as a (public owned)
utility (provided to banks at low cost).
- Would create a level playing field and fair competion
all banks to provide added value to customers.
- Would keep small & medium banks sustainable and
Think global, act local development
Think environmental, act social development
Think profit or non-profit, act sustainable
Social economy & services, health
education & training, culture & arts
enhance social inclusion.
International Association of Investors in the Social