Ethic bank and cooperative bank. A comparative analysis through the study of Caixa Popular and Ethical Banking Fiare

Abstract

Social banks now represent an alternative to conventional banking, especially for those customers who demand a socially responsible consumption. Social banking consists of two different types of credit institutions: cooperative banks and ethical banks. The first are active since more than a century through a proximity banking model focused on the territory. The latter have three decades approximately operation, addressing the realization of socially responsible investment (social and environmental projects). In this paper the similarities and differences between the two models of social banking are analyzed by conducting a consistent analysis of cases in a comparative study between the credit union Caixa Popular and the ethical bank Fiare Banca Etica. The analysis concludes that both social banking models are based on a participatory and democratic system in which employees and customers are actively involved in their operation and both contribute to financial inclusion. Instead, the cooperative banking model is a model based on community banking and direct customer relations through bank branches, while the model of ethical banking is based on electronic banking with few branches.