This is a CTP of initiative: FEBEA/Banca Popolare Etica (Italy)
The CTP relates to a change in Banca Popolare Etica economic/financial frame, which draws from a process of internal debate regarding the culture and the dimension of the bank as well as what are the most desirable future scenarios for Ethical Finances. Shareholders and other members debate on the role that BPE should concretely fulfil in the desired transition towards a civil economy or an economy for the common good. This CTP is described by the interviewee as an ongoing process of “change of vision” which starts in 2008 and that was motivated as well by the consequences of the 2008 economic and financial crisis:
We are talking about a process ... rather than about a decision. This process started in 2008 which continues now and is also being developed in Spain through the Fiare lab. It is a cultural process that allows us to see the bank in five years, in 10 years’ time ... we have to imagine the bank as it will be between five years from now, in 10 years… and the needs that the bank will have to face ... I believe this is our most important challenge: going beyond a short-run vision and seeing the future. I think this is a responsibility of the bank, we must get involved in this.
From this moment on, Banca Popolare Etica becomes aware that ethical finances are key to develop the civil and solidarity economy. BPE actively participates, along with thousands of organizations, in an ongoing cultural debate “listening to the demands of those who are striving to achieve a new model of development, relationship, and exchange that focuses on solidarity between people and environmental sustainability”. Until then, Banca Etica is a cooperative that strives to be the Italian bank for the “third sector”; it serves non-profit organizations, cooperatives, social enterprises, and individuals.
This CTP involves a change in this operational framework. The bank will address new types of civil society-oriented economic projects, such as for-profit organizations focused on organic food, green energy and employee buy-outs.
And we speak of a generative economy, an economy for the common good ... that you can make a chair, you can make a table, then make a house and you can generate common good according to how you work. You understand? We are not only supporting social companies, we will support traditional companies that work in a different way ... to be very attentive to the people, the environment, justice ... that respects the rights of the workers and that can generate common goods, which generates non-financial social capital, social capital as the capital of a community.
This change in the dimension of the Banca Etica project towards an economy for the common good leads to the constitution of the “New Economy Lab” in 2012. The “New Economy Laboratory" aims at promoting real aggregation of individuals, who are able to think and put alternatives to the current economy and financial system into practice by connecting enterprises, universities, Third Sector organizations and both profit and non-profit initiatives:
We want to expand our framework for action, because change in society is achieved especially when we reach other companies, other people ... when we do not stay in our niche. We can be a very nice project, with very strong values ... but not changing anything because people can think in one way and act differently. Transforming the economy was very important to us. The crisis was very important for achieving this understanding. Many people wondered about the use of money, about the goals that a company should meet ...
Several actors were mentioned as co-producers of this critical turning point. First, the respondent refers to the current leaders of Banca Etica, the members of the Board of Directors, founders and shareholders which comprehended the need for starting a process of discussion, both internally and externally, on how to change the existing economic models. The members of BPE internally reflect on the role that the initiative could or should develop to transform the Italian economy. Then, they opened the process to external individuals, enterprises and networks who joined the project:
“This process was promoted by the BPE founding organizations. We asked ourselves what economic model we wanted to develop. We needed a different model. Then we started a tour over Italy to find other new economy experiences. We sought to understand what the elements of the new economy were. That it was not just to understand what profit or nonprofit was ... we did so to work for a fairer economy and a more sensitive to environmental problems model, etc.” [1]
Concerning the “New Economy Lab, this project is the result of a knowledge coproduction process which concluded in December 10, 2013, with the presentation of the summary of the reflections. BPE has elaborated several documents that explain the process and the aims of this New Economy Lab:
“In a year and a half pathway, we have crossed Italy from South to North, in five stages (Lamezia Terme, Rome, Verona, Torino, Perugia), meeting fifty companies and non-profit organizations protagonists of this "new economy ". Each stage has added a piece to the mosaic, which actually gave us the tools to comprehend this new economic model” (BPE, 2013)[2]
Second, the respondent mentioned the 2008 economic crisis as a relevant contextual condition that facilitated the co-production of this CTP. The financial crisis evidenced the lack of a coherent strategy that will make societies more resilient in the face of challenges.
When the crisis began, many people lost confidence in traditional finances, did not they? And many approached ethical banking or alternative finances. And then all the economic problems arrived and many companies closed. But there were many underground experiences, from the underground economy then we thought about working on a new horizon
In that moment, the Italian society found -within the diversity of social innovations and counter-movements- real alternatives to the failing systems. Despite being a minority, alternative discourses – e.g. from the critical economy- gained popularity after the crisis. One example is the Economy for the Common Good movement:
A economy for the common good movement exists in Italy, which comes from the north, from Germany, and which was fuelled by Helberg. There are a number of for-profit companies in Italy that also share this idea. We also work with them. There is a whole movement
The respondent also remarks the influence of the “Economy of Communion” Catholic movement. This cultural movement advocates for an “alternative economic culture” and defends:
“A new concept of economic action, not only a utilitarian one but one aimed at the integral development of people and society
We have the economy of communion movement that is a movement of the Catholic Church, which in turn is a huge movement in Italy... in Italy and Latin America and among this movement of many entrepreneurs. And they have developed what they call the economy of communion. And they say that if you are a Catholic, and also an entrepreneur you must respect some values, involving mainly sharing profits
[1] BPE´s website explains the organizations that have created the New Economy Laboratory with them are: AICCON, Arcadia University, ARCI, Associazione EES Marche, Fondazione Culturale Responsabilitá Etica, CNCA, Polo Lionello Bonfanti, Federbio, SEC -Scuola Economia Civile, Solidarius Italia.
[2] http://www.bancaetica.it/nuova-economia http://www.bancaetica.it/sites/bancaetica.it/files/web/progetti_speciali/nuova%20economia/7_LABORATORIO%20DI%20NUOVA%20ECONOMIA_DIC_2013.pdf
This critical turning point occurs in a recent period of time and, for this reason, the respondent mentioned only related events that occurred previously to the CTP. Banca Etica has developed several partnerships with other cooperatives and organizations operating in different European countries. An example of this are the participation of BPE in the foundation of FEBEA[1], the European Federation of Ethical and Alternative Banks (founded in Belgium in 2001) or in the creation of SEFEA (European Company for Alternative Ethical Finance), aiming to strengthen and increase ethical and social financing organizations throughout Europe.
This networking activity on the European level enhanced the emergence of new credit cooperatives and the merger of Banca Popolare Etica and the Spanish Fiare (the Foundation for Investment and Responsible Saving) with whom they had been collaborating since 2005. In 2008, the leaders of BPE started to think about the possibility of creating a European cooperative alongside with other two partners, as the interviewee explains next:
Yes, we have thought about creating a European cooperative. Actually, the original project -in 2007-2008- was to launch a European bank between Fiare, Banca Etica and La Nef, which is a French institution member of the anthroposophist network ...But this project was not developed. Some problems did not allow the development of this project together. Despite we shared many things (values and challenges), eventually we left only Banca Etica and Fiare
The Critical turning point is grounded on the prior relationship between Banca Popolare Etica and the Italian third sector. Banca Popolare Etica was founded in 1999 by more than 20 Italian social initiatives and NGOs and still maintains its historical relationship with the Italian Fair Trade movement or the Italian Association of NGOs. BPE has a deep knowledge on the different sectors of the civil economy, acting as a meeting point for individuals and organizations. Such relation has been strengthened in the last years, which paved the way for the creation of the New Economy laboratory:
Yes, there is movement and then we work with fair trade organizations, solidarity initiatives, social enterprises. Then there are many experiences in Italy which are being developed. We also work with the network of companies that fight against the Mafia, who work on land confiscated from crime, right? So it's very interesting, very interesting. We have in Sicily ... we are working with the antipizzo network. In Calabria, where the Ndrangheta is very strong, we are working with the antiraket network, which are companies that fight every day against organized crime
[1] Founder members of FEBEA are: Banca popolare Etica (Italy); Crédit Coopératif (France); Caisse solidaire du Nord Pas de Calais (France); Credal (Belgium); Hefboom (Belgium); Tise(Poland); La NEF, Nouvelle Economie Fraternelle (France).
No contestation was reported by the interviewee. The leaders of the initiative, as well as the majority of the shareholders, have identified the same need or, at least, considered that could be a good project to start in the short-run. Indeed, as researchers, we have observed a high level of consensus in the general meetings the initiative has held in the last years[1]. Participants usually consider the proposals presented by the Board of Directors and the social innovation projects –such as the New Economy Laboratory- as very appealing ideas for activists.
Participants usually consider the proposals presented by the Board of Directors and the social innovation projects –such as the New Economy Laboratory- as very appealing ideas for activists.
They support it, because they see future ahead. Because the goal is to see the future, the hope for this project in the future ... The proposal was shared with the Board of directors by the directive, it was shared with the workers of the bank ... And I do not know if you know a little bit the bank but we have a network of active partners that play a very important role in the development of the project. We also shared this process with them
[1] 2014, 2015 and 2016 Shareholder´s assemblies have been available on streaming platforms and partners were able to participate online from different localities in Italy and Spain.
The respondent did not mention if this CTP is perceived as a turning event by the most of the partners of Banca Popolare Etica. It should be said that the interviewee was one of the pioneers of the credit cooperative and he has been involved in the initiative from the beginning, assuming different responsibilities in the management structure.
The CTP started in 2012 and is still an ongoing process which requires the participation of external entities and networks. Hence, it is too early for assessing whether this event would be critical in the history of Banca Etica or not. Furthermore, it is important to mention that the respondent is considered a well-informed person by his colleagues, with a long-term experience and the ability to draw future scenarios.
The first lesson that the interviewee extracts from this critical turning point is the need for persuading and engaging the social majority in social transformation. He also mentions having learned about the dimension of change, the need to change current social paradigms- which necessarily involve the implication of the wider society.
I have learned that if we want to change the world we have to change it together. It is not enough that part of society wants change. We have to involve other sectors. You talk about innovation, to me the innovation if it is interesting but it is not the challenge of ethical banking. The challenge is not innovation. We may be a bit exaggerated but the challenge is evolution. You can talk about evolution when all of society changes, right? Innovation can occur in our activities, in a way of doing things... it is very important that the bank do its best to innovate but I believe that our challenge is evolution. This is one of the principles we share with the new economy. It is important to get out of the context in which we have worked and to involve as many people as possible
A second reflection relates to the importance of economy -the use of money- as a tool for social transformation. The aim of counter movements is altering or challenging the current systems and any alternative (e.g. social and solidarity economy initiatives; sustainable or ecological projects; social innovations) require resources to exist, to upscale, to spread the new model. Banca Popolare Etica contributes to this objective by funding organizations operating within the third sector which carry out social oriented economic projects (mostly in the field of social cooperation, international cooperation and environmental protection). However, in order to achieve social impact, the credit cooperative should enhance its activity. If the social innovation is able to prove that an alternative -economic, financial- model is possible, it would gain more political and social influence.
This is what we have worked on. We have seen this with money. Before, when I was in MAG and we were working with 1 million euros ... and now we are working with a billion, it is very different. With 1 million you work on a small-scale, you can only meet certain needs. With a billion you can talk about a real alternative, about change. It allows us to talk to politicians, for example. It allows us not to talk to other banks. Say, look, what we are doing is going to show that it is possible to make finances with an ethical challenge. (...) At the moment we have 40,000 members ... with 1 million members the impact I think would be very, very different. This can be our challenge, right?
We will demonstrate that economic activity is very important if we want to build a better future. At this moment BPE has a very important role ... before it had a very underground role. Now what BPE says has an impact on public opinion. Many media ask our opinion. Many televisions come to interview people at the bank. They come to ask what is the vision, what is our thinking ... almost every day we are in the media
The interviewee also reflects on the existing dilemma in social innovation initiatives regarding the ideal size of the project. The initiative reflects daily on the risk involved in expanding the cooperative, growing too much, although remaining as a minority does not seem a compatible alternative with the bank's mission, or with the desire for social transformation among the activists:
What I can say is that the two ideas are correct, you cannot choose one. We must keep both of them present. It is the dilemma of remaining small or growing. I believe that this dilemma is an important one to work on. Knowing that what we are doing, growing carries many risks but not growing means staying on a hill, on a mountain ... this is our dilemma. We must grow up but wisely and knowing what the risks are. In our bank this is our every day’s tension, you see?
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