Social Finance and Credit Unions: Differentiating by Making a Difference
What role do credit unions play in social finance? Where can they do more?
Credit Union Central of Canada’s latest System Brief, Social Finance and Credit Unions – Differentiating by Making a Difference, discusses what credit unions are doing, and can do, in social finance – an approach to managing money that delivers both positive social and/or environmental benefits as well as a financial return.
With some $1.35 billion in impact investment assets, credit unions are among the dominant players in social finance in Canada. As this emergent category of finance gains in popularity, credit unions will want to continue leading and innovating to further enhance their competitive advantage in the financial services market place.
This introductory paper to social finance defines this emerging concept and why it matters for credit unions. It also explains why it is gaining momentum and identifies the latest opportunities within social finance for credit unions. Specifically, the System Brief suggests that credit unions can differentiate themselves from their competitors by expanding their social finance offerings and measuring the positive impact they are having as a result of investing and lending for good.
Editor’s Note: This piece was originally posted on Credit Union Central of Canada’s blog. It has been posted here with the author’s permission. The System Brief it refers to can be downloaded in it’s entirety here.