1. Financial Inclusion and Social Finance
ADFIAP CEO Forum VI
“Leading the Recovery: Environmental, Social and Governance Imperatives
for DFIs”
Oct 29, 2009 Manila
INAISE: International Association of Investors in the Social
Economy www.inaise.org
patrick.decoodt@inaise.org

2. Money as a tool for change
Making sense with money
Sustainable finance for a sustainable world
60 members
on 5 continents & 30 countries
Banks/ credit providers / MFI’s /
regional networks
a
network

3. Created in 1989 and grown together with the movement
of social investors gaining importance, volume and
visibility in Europe and outside.
In 1992 a secretariat in Brussels
In 2008 the conference in Quebec (Canada), approval of
a charter and decision to go more global, worldwide.
Our members have financing track record in
- renewable energy
- co-operatives and (non-profit) community enterprises
- fair trade, small-enterprise start-ups & micro-credits
- health and social care, cultural and education sector

4. Definitions “social finance”
Wikipedia definition
an approach to managing money that delivers a
social dividend and an economic return.
includes community investing, micro-lending,
sustainable business and social enterprise lending.
includes outcome-based philanthropic grants and
investments
some social investors even try to affect an
environmental return, referred to as “PPP”, people,
planet, profit.

5. ILO (International Labour Organisation) definition
Social finance is using financial instruments to
promote Decent Work.
It means finance - sustainable finance - with a social
goal.
It is about credit, savings and other products that help
the poor to cope better with risk, take advantage of
income-generating opportunities, organize and have
a voice.
Also about promoting and encouraging those
institutions that cater to the financial needs of the
working poor, including women groups and SME’s
that create jobs.
Also about financial sector policies that set incentives
to open up the financial to the working majority and
create an enabling environment in which MFI’s can

6. “financial inclusion”
= the delivery of banking services at affordable costs
to vast sections of disadvantaged and low income
groups.
Unrestrained access to public goods is a sine qua
non of an
open and efficient society and human development.
As banking services are in the nature of public
goods, the
availability of banking and payment services to the
entire
population should be a prime objective of public
policy.
A reaction to financial exclusion
// micro finance movement (Progress Out of Poverty
index)

7. Not only an issue in « emerging economy » countries
Not only an issue of micro-finance
Europe.
Financial Inclusion Observatory www.fininc.eu
European Commission . http://ec.europa.
eu/employment_social/spsi/docs/social_inclusion/2008/financial_excl
usion_summary_en.pdf
European consumer debt networking.
http://www.asb-gmbh.at/ecdn/index.php
United States of America
House of Representatives http://www.epi.org/page/-
/pdf/092509austin.pdf
Community Development Credit Unions
http://www.cdcu.coop/i4a/pages/index.cfm?pageid=417
Our members
Oikocredit
http://www.oikocredit.org/site/en/doc.phtml?p=social-performance-
centre
Triodos Facet - sustainable SME development advise
http://www.triodosfacet.nl/content/view/65/32/lang,en/
Institute of Social Banking, Frankfurt
http://www.social-banking.org/en/the-institute/

8. development banks & social finance financial
inclusion & environmental imperatives
can go combined
Attention for
Profit, People, Planet
Not-for-profit organisations
« Impact » investment
Financial literacy
for ex. renewable energy community investment
Coalition of Socially Responsible SMEs in Asia
(CSR SME) (http://www.aa4se.com/cms2/forum )

9. Importance of overall finance and bank environment
Ecologic diversity // sustainability
Bank diversity for a sustainable finance development.
- Keeping a not too high compliance burden and costs
for
small / medium and micro “banks” .
- Legal frame for local savings & insurance for MFI’s.
Payment (clearing), ATM and general ICT
infrastructure to be developed as a (public owned)
utility (provided to banks at low cost).
- Would create a level playing field and fair competion
for
all banks to provide added value to customers.
- Would keep small & medium banks sustainable and
close

10. Think global, act local development
Think environmental, act social development
Think profit or non-profit, act sustainable
development
Social economy & services, health
care,
education & training, culture & arts
enhance social inclusion.
International Association of Investors in the Social
Economy www.inaise.org
patrick.decoodt@inaise.org