Ethical finance extending the reach

The Scottish Government become signatory (21/22^nd September) to UN Principles of Responsible Banking joining a third of the global banking system ($47 trillion worth of assets) 

It is impressive that the United Nations has secured so many signatories to the Principles of Ethical Banking.

 My plea is that Scotland provides a special “Scottish” addendum and extends the principle of ethical finance to include positive action for the unbanked, near prime financial and credit excluded population in Scotland 

In October Global Ethical Finance Initiative acted as pacesetter bringing together UN Multi-faith global power roundtable and a conference dedicated to ethical finance with a global reach. 

It is encouraging to see leadership from the Church of England and Islamic Bank collaborating to spread and scale faith centred ethical standards in banking    Scotland has a long been recognised as a champion of ethical finance. Gremlin Bank (bank for the poor) founded by Mohamed Yunis, more recently Castle Bank Co-operative in Edinburgh support for low-income families and MoneyMatiX community approach to teaching children and families to manage money (and debt) are just a few examples

It is against a backdrop of a long historical tradition in democratic banking serving the poor and rich alike that the vision emerged of a Scottish Investment bank.  The vision is nearing reality as the Scottish Investment Bank bill proceeds through parliamentary processes.  Central to the bill is a remit to include equality impact assessment ”“ focusing on ethical investment for inclusive growth.  Linking the establishment of the Bank to the Equalities Act (2010) is inspired.  Ensuring the needs of people who share one or more of the protected characteristics are met is exactly what is needed to provide inclusive growth. 

I would ask that we open the debate under the auspices of  Fintech Scotland to extend the provision of the Scottish Investment Bank to include fintech mobile innovation as a means of extending the reach to those who are unbanked or “near prime” (not able to access credit due to minor infringement of credit ratings)

I travel with hope in my heart that Scotland will be the first country to aim for zero unbanked.  Adopting SDG’s as key drivers of Scottish policy and acknowledging that wellness sits at the heart of an economically vibrant country is pretty good stuff.    

 As Founder/CEO of Women’s Coin (digital currency of social value) I believe that adoption of ethical financing at Corporate and SME level extending the remit to include digital innovation, tokenisation,  and local currencies will accelerate the spread and scale of adoption of SDG’s (UN Strategic Development Goals).  

There has never been a more critical time for ethical financing and ethical leadership across all sectors Public, Voluntary, Charitable, Corporates and SME’s 

Scotland can really set the pace, the vision and has the know how to create an inclusive society that fosters wellness as the key to economic vitality

Blog written by (Prof) Christine Bamford, Founder/CEO of Women’s Coin

#MorePowertoher  #fintechscotland @finance4change @modulr

womenscoin.com

 voluntier.co.uk

 globalethicalfinance.org

Will the growth in fintech innovation be the solution to tackling one of society’s big issues? Financial exclusion

Homeless, no address, unemployed and no bank account ”“ the future is bleak

 2 Million without a bank account. Between 10-14 million “near prime” adults have no access to credit, despite minor blemishes on credit history or can only access credit at high APR 29.9-39.9%

There is an urgent need to open access to financial services for those without an identity and are homeless. or on low-pay income. It isn’t just the homeless but families managing on low incomes where one bill too many pushes them into debt crisis ”¦.  into the hands of loan sharks or high APR pay day loans and a continuing spiral of debt.  If wellness sits at the heart of Scottish Government policies and values ”“ then we need to recognise the impact of debt, low income, lack of access to credit and insurance as key impact measures on mental wellbeing

 Fintech Scotland range of innovative solutions, mobile payment systems, education, blockchain, crypto-currencies, wallets, tokenisation of voluntary work open the opportunity to create an equal and more inclusive society.  Mobile friendly approach to Identity secured through biometrics, face recognition, top up payment cards/mobile payments are now able to provide evidence of credit worthiness.  This is a modern pathway to a bank account, credit worthiness, access to insurance, credit and a verifiable credit rating.   

March 2018 The Mexican Congress approved Fintech Law that aimed to regulate electronic payments, crypto currencies, crowdfunding and open banking.  The fintech Law promotes innovation in the financial services industry, stimulates the growth of new business models and reduces entry barriers for Fintech firms.  Fintech Law can significantly improve Financial inclusion. Fintech Scotland has taken a non-regulatory approach to supporting financial technology innovation. But the impact possibilities are with us now to work with traditional financial service to provide a integrated solution to financial exclusion.   Scotland is on the brink of providing a “world-class” solution to inclusive growth through financial digital solutions creating the link between wellness and economic vitality

Blog written by (Prof) Christine Bamford, Founder/CEO Women’s Coin 

Acknowledgement to PWC blog and report 

www.womenscoin.com #MorePowertoHer  @ChrisBamford12