Civic Banking is a new way of doing banking (just as Crowdlending is also a new way of financing and investing) whose ultimate goal is not to obtain the maximum possible benefit, but also seeks a social objective to support the economy real sustainable and not just help them to always be more and more rich.

Civic banking

So the Civic Banking and the Crowdlending companies are gaining ground to the merciless traditional banking thanks to the fact that they are supporting companies and entities that with their activity not only seek a commercial profit but also seek social benefit through environmental projects or that serve to remove a certain segment of people from the poverty line.


Civic Banking in Spain

In Spain more than ¾ of the financial activity is controlled by traditional banking and this is shown by the fact that only 6 banks already control more than 80% of the savings of all Spaniards and this makes them have the monopoly of the concession of loans since they are the ones who have the money, at least the largest amount of it, and the only thing that traditional banking looks for is to place it to the powerful at the best possible interest, forgetting about the most disadvantaged classes and SMEs.

As a response to this monopoly and this injustice, Civic Banking is born and, in part, Crowdlending is also born, both sectors seek to break this monopoly and Civic Banking, in addition, seeks to promote the social economy, real and sustainable.

For these reasons there are already many investors who are interested in depositing their savings in this type of Civic Banking, because the saver is no longer satisfied with being quiet with the entity where he deposits his savings but also wants to know where these funds are allocated , that is to say, they no longer only look for the security and profitability of their deposits, but also that their savings are also destined to projects that create employment, that help to the labor formation and the insertion of people at risk of exclusion, to create companies that be respectful of the environment with clean and sustainable production processes that do not generate pollution and waste is recycled in an appropriate manner without dirtying the environment.


Function of Civic Banking

The Banca Cívica is in charge of controlling that the savings of its depositors go to social projects and it is dedicated to inform, in a transparent way, to its savers the destiny of their deposits and what is being financed with them.

The Banca Cívica is dedicated to financing projects of social utility in advantageous conditions, to recover the amounts invested in a flexible way and to promote and support this type of investments through offers of financing with excellent conditions.

However, the money invested must be invested head-on, that is, it must be invested in projects that are of a social nature but are viable, because otherwise Civic Banking could incur large losses that could jeopardize its future viability .


What products does Banca Cívica market?

One of the products that the Banca Ética commercialises and that has had the most fame is the one known as Microcredit , which consists of a small amount of money that is lent so that the individual can set up a small business or similar to survive and be able to take out his family forward; it is usually granted without the minimum guarantees required and only with the condition that the person commits to return it as he begins to generate resources through his investment financed by said Civic Banking.

Other products always carry the tagline of ” solidarios “, despite being similar products that traditional banking also offers, such as booklets and current accounts of solidarity savings, solidarity investment funds, solidarity cards or solidarity loans , all have as a common link that are used to finance social projects.

Civic Banking, therefore, is another way of doing banking that puts social goodness before private benefit , it is a bank that applies a new ethic to the banking business, a new alternative banking that seeks to satisfy other needs, the needs of people, of citizens and the sustainable real economy.

That’s why what most often finance Civic Banking are projects related to fair trade, culture, renewable energies and the environment , that is, with activities that are good and that do not produce negative consequences in our social environment and environmental.

That is why Civic Banking will never grant credits for consumption, nor credits to finance companies dedicated to armament, to nuclear energy, to the exploitation of wood in an unsustainable way, to tobacco or alcohol or any other type of drug, nor to pornography or similar degrading activities. Civic Banking was born to help the real economy and society to be better and more respectful with our environment, all with the aim of putting people at the center as the main objective of the economy and not the other way around .


Examples of Civic Banking

Muhammad Yunus is a person who founded the Grameen Bank in Bangladesh in 1976, a bank destined for the poor with which he introduced the Civic Banking there and he did it through his already famous microloans with which they tried to alleviate the famine of 1974 by giving him the opportunity to people to start over with a small business or with whatever it is that allows them to generate resources for their subsistence. Such was his success of the initiative that he was named Nobel Peace Prize in 2006 “for his efforts to create economic and social development from below”.

Another example of Banca Cívica is Triodos : a bank with more than 35 years of experience whose objective is to allocate its resources to finance the welfare of people and the environment . They are very transparent in the information on where their loans are destined and their fundamental objective is to help transform society using money correctly to promote a positive social change by financing organizations and companies of the real economy that, with their activity, contribute an added value to society and the environment.


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