Ethical Banking and Poverty Alleviation Banking: The Two Sides of the Same Solidary Coin

Abstract

(1) Background: The growing number of banking entities linked to the field of banking since the 1980s requires a preliminary classification of this sector in order to identify the main stylized facts of this wide conglomerate of institutions oriented to financial sustainability as well as the establishment of an effective differentiation that can objectively distinguish the different types of institutions operating in this subfield of finance. The objective of this research is to obtain a frame of reference by determining the main defining characteristics of these entities and their differentiating elements, by verifying, on an analytical basis, the ways in which they provide a social service in the pursuit of financial inclusion. (2) Methods: A double methodological perspective is used jointly: Factor Analysis and Cluster Analysis. (3) Results: It was possible to delimit two significant groups: Ethical Banks per se and Poverty Alleviation Banks, defining their main differences and analogies. (4) The taxonomy conducted revealed that Ethical Banks per se are primarily established in developed countries, while Poverty Alleviation Banks focus their actions on developing nations. Based on this classification, we establish a series of practical policies that support the future deployment of sustainable banking.

Sustainable financial services: reflection and future perspectives

“…The limited research in this area informed the utilization of financial technology to deliver financial products. This includes but is not limited to the use of mobile financial services, online financial services, cryptocurrency (Vincent and Evans, 2019 ; David-West et al, 2020 ), and others more to be identified like to use of robotic and artificial intelligence technologies. Building sustainable financial services systems for the rural poor is a big concern in microfinance service delivery innovation considering many obstacles, including IT infrastructure and IT literacy (Bennett and Cuevas, 1996 ).…”

“…nature. com/33anbt1) 64 Thiam M.E.B., Liu J., Aston J 2019 Organizational ethics focus—professional ethics is integrated within the banking culture 66 San-Jose L., Cuesta J 2018 Organizational ethics focus—Islamic banks 67 Lenz S., Neckel S 2019 Organizational ethics focus—ethical banks between moral self-commitment and economic expansion 71 Bowers B., Boyd N., Mcgoun E 2020 Sustainability management—banks engaging in green washing for looking better 76 Usher E 2020 Supervision and regulation—principles for Responsible Banking 77 Phuong N.A 2020 Sustainability strategies—bank green banking adoption 78 Diener F., Špa?ek M 2020 Sustainability strategy—sustainable reporting 79 Karkowska R 2019 Sustainability management—concept of sustainable banks—business models 82 Fenwick M., Vermeulen E.P.M 2020 Supervision and regulation—to establish an environment for successful and sustainable “ecosystems”, regulators need to become active participants in these more open forms of business organization 83 Valls Martínez M.C., Martín-Cervantes P.A., Peña Rodríguez S 2021 Sustainability strategy—ethical banking business model 88 Bukhari S.A.A., Hashim F., Amran A …”

Ethical banking behavior among millennials and Gen-Z in Malaysia

“…The primary distinction between ethical banks and conventional banks is that the latter focus solely on increasing their profits, whereas ethical banks operate under the three guiding principles of profit, people, and planet (Martínez et al. , 2021).…”

Longitudinal Study of Credit Union Research: From Credit‐Provision to Cooperative Principles, the Urban Economy and Gender Issues

“…ey represent a fundamental tool for supporting and disseminating microcredits [5,17,20]. Consequently, according to the supranational institution in charge of the regulation of these institutions, the World Council of Credit Unions [21], their importance in the world economic-financial panorama can be summarized in the following figures: there are more than 86,000 institutions present in all continents that group together more than 300 million members from 118 different countries.…”