A new report by Transform Finance and Beneficial State Foundation offers a guide for banks on how to involve community members in banking decisions.
What’s in the report: The report defines three broad categories of participatory investing in banking:
Why now: With the recent collapse of Silicon Valley Bank and associated fallout, the banking system is on thin ice. Now is a good time to discuss different models for banks writ large.
The argument: The report argues that participatory banking is good for business, for a number of reasons:
What else: The report makes the case that participatory banking can improve CRA and other exam performance, helping you to manage your risk; you are likely to be more compliant by being more connected.
Bottom line: Participatory Investment can support redistribution to align the depositor-banker relationship better—balancing the banker’s ability with the depositor’s ambition.
Proximate is an independent media platform covering movements for participatory problem-solving. We look at the news through the lens of money: how it’s given away, how it’s invested, and how it’s distributed by government.
We are a fiscally sponsored project of Movement Strategy Center.
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