Banking and the Social Economy

Author
Rod Schwartz
Source
Social Edge
Publisher
Skoll Foundation
Publication date
September 2011
Type
Periodical Articles
Industry
Finance
Category
Social Entrepreneurship
Language
English
Free/Pay for content
Free
 

The banking system is of vital importance to the creation of a social economy, yet there is much distrust and anger on both sides of the spectrum. “Quite a few colleagues view the financial sector as being inherently evil, but such thinking is short-sighted,” writes Rod Schwartz , CEO of ClearlySo in London.

 

Indeed, if one cannot deny the damage done by banks during the recent economic crisis, it is also true that financial firms can offer social enterprises access to capital, networks and expertise.

Social entrepreneurs and other innovators must have an answer, hopefully one that goes beyond complete disengagement. For example, the emergence of social banks and crowdfunding may offer alternatives to traditional financial institutions.

But is this financial disintermediation healthy? Our narrative of complaint is not consistent, says Rod Schwartz, and we need to develop one that is realistic. Help him find the right answer.