Patrick Decoodt Ceo Panel 4


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Patrick Decoodt Ceo Panel 4

  1. 1. Financial Inclusion and Social Finance ADFIAP CEO Forum VI “Leading the Recovery: Environmental, Social and Governance Imperatives for DFIs” Oct 29, 2009 Manila INAISE: International Association of Investors in the Social Economy
  2. 2. Money as a tool for change Making sense with money Sustainable finance for a sustainable world 60 members on 5 continents & 30 countries Banks/ credit providers / MFI’s / regional networks a network
  3. 3. 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
  4. 4. Definitions “social finance” Wikipedia definition 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 investments some social investors even try to affect an environmental return, referred to as “PPP”, people, planet, profit.
  5. 5. ILO (International Labour Organisation) definition Social finance is using financial instruments to promote Decent Work. It means finance - sustainable finance - with a social goal. 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 a voice. 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
  6. 6. “financial inclusion” = the delivery of banking services at affordable costs to vast sections of disadvantaged and low income groups. 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 goods, the availability of banking and payment services to the entire population should be a prime objective of public policy. A reaction to financial exclusion // micro finance movement (Progress Out of Poverty index)
  7. 7. Not only an issue in « emerging economy » countries Not only an issue of micro-finance Europe. Financial Inclusion Observatory European Commission . http://ec.europa. eu/employment_social/spsi/docs/social_inclusion/2008/financial_excl usion_summary_en.pdf European consumer debt networking. United States of America House of Representatives /pdf/092509austin.pdf Community Development Credit Unions Our members Oikocredit centre Triodos Facet - sustainable SME development advise,en/ Institute of Social Banking, Frankfurt
  8. 8. development banks & social finance financial inclusion & environmental imperatives can go combined Attention for Profit, People, Planet Not-for-profit organisations « Impact » investment Financial literacy for ex. renewable energy community investment Coalition of Socially Responsible SMEs in Asia (CSR SME) ( )
  9. 9. 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 for 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 for all banks to provide added value to customers. - Would keep small & medium banks sustainable and close
  10. 10. Think global, act local development Think environmental, act social development Think profit or non-profit, act sustainable development Social economy & services, health care, education & training, culture & arts enhance social inclusion. International Association of Investors in the Social Economy