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European Savings Banks Group “CSR Lab” on Business involvement to enhance social inclusion at local level I.. Community investment activities improvement of living conditions, support t

European Savings Banks Group “CSR Lab”

on Business involvement to enhance social inclusion at local level

I GENERAL BACKGROUND

1 The European Alliance on CSR

At the occasion of the adoption of the Communication on CSR in March 20061, the European Commission launched the European Alliance on CSR It invited enterprises to publicly express their support and commitment to CSR by joining the Alliance More than 260 companies now formally support this initiative2

In the Communication, the European Commission also recommended that companies

supporting the Alliance should set up “open coalitions for cooperation“ to “explore and develop joint

operational projects, in partnership with relevant experts and stakeholders” The objective should be to

define concrete CSR solutions/projects, in a number of priority areas, such as innovation and entrepreneurship in sustainable technologies, products and services which address societal needs, CSR and SMEs, integration of social and environmental considerations in business operations, improving and developing skills for employability, diversity and equal opportunities, dialogue and engagement with all relevant stakeholders etc These working

groups are referred to as “laboratory meetings” (“labs”)

2 ESBG member banks’ commitment to CSR

Savings banks embody a “stakeholder” model, seeking at the same time to be profitable, but also

to bring value and return to the whole community of stakeholders which surround them suppliers, customers, employees and the local community in which they operate Community investment activities (improvement of living conditions, support to greater social cohesion, education projects etc) are therefore an integral part of savings banks’ identity throughout Europe and one of their distinctive features amongst retail banking institutions

-It is nowadays only one of the pillars of their broader, balanced and comprehensive CSR approach, which increasingly include all the various CSR components –human resources, human rights, relations with suppliers and customers, corporate governance, environment, community and society- and cover a whole range of fields, such as financial literacy, proximity banking and access to finance, microcredit, transparency and corporate governance measures, workforce training and life-long learning, targeted actions to support SME clients business, CSR raising awareness activities, introduction of ethical criteria in financial products, etc As genuine and long-standing socially responsible actors, European savings banks proved able to adjust and to innovate, to diversify their socially responsible initiatives to anticipate stakeholders’ needs and demands, in the evolving context and concerns of the society in which they operate3

II ESBG INVOLVEMENT WITH THE ALLIANCE

1 Public support to the Alliance

On behalf of its member banks, the European Savings Banks Group (ESBG) expressed its

public support to the Alliance at an early stage, reflecting their belief that initiatives led by the

European Commission in partnership with market players will lead to further progress in CSR

engagement and achievements4

As for its individual members, 15 Cajas de Ahorros in Spain, Lloyds TSB in the UK, Erste

Bank in Austria, OTP Bank in Hungary, Banque et Caisse d’Epargne de l’Etat in Luxembourg,

Montepio in Portugal, Groupe Caisse d’Epargne in France and a number of German

Sparkassen officially became supporters

2 Contribution to the High-Level meetings of the Alliance

European savings banks were represented, at the highest level, at the 2007 and 2008

High-Level meetings of the CSR Alliance, convened jointly by European Commission Vice

President Verheugen (Enterprise and Industry) and Commissioner Spidla (Employment, Social

affairs and Equal opportunities) This was the opportunity to highlight some of the main CSR

achievements of European savings banks and to renew their commitment to the EU CSR

initiatives It was specifically underlined at this occasion that ESBG and the European savings

banks:

- support the voluntary approach of CSR promoted by the European Commission and the

creation of an EU enabling environment, rather than a binding framework They are

convinced that this approach will encourage EU companies, including savings banks, to

integrate CSR principles in their strategy and implement CSR processes at their own pace

and following their own priorities Besides, this will avoid any costly and additional legal

requirements imposed on companies, which could prevent development and innovation;

- welcome the fact that the European Commission identifies companies as primary actors

on CSR But the CSR concept must mirror the diversity of business practices developed

throughout the European Union, and put on an equal footing the achievements of

multinational, listed companies and the contribution of all other business actors -SMEs,

local companies, non-limited stock companies, publicly-owned companies, foundations,

etc- They are an integral part of and contribute to the dynamism, growth and

competitiveness of the corporate European landscape Diversity is also an asset as regards

CSR and there is a need for a better EU recognition of the local, medium and small-scale

dimension of CSR, as developed by savings banks

On this basis, ESBG and European savings banks are convinced that CSR can be a key driver

for social and economic development of the local communities and European regions, leading

to job creation and sustainable growth, thus contributing to strengthening the EU

competitiveness

III DEVELOPMENT OF AN ESBG-LED LAB

1 Scope and objectives of the Lab

With the support of its members and interested stakeholders, ESBG has decided to bring an

active contribution to the Alliance, through the facilitation of a laboratory meeting around the

theme “BUSINESS’ INVOLVEMENT TO ENHANCE SOCIAL INCLUSION AT LOCAL LEVEL” This

topic will fall under the EU priority “fostering innovation and entrepreneurship in sustainable

technologies, products and services which address societal needs”

As part of their support to local and regional communities, European savings banks have a

long-standing experience of developing solutions to contribute to greater social cohesion, in

partnership with local stakeholders Their involvement is directed to long-term,

comprehensive and innovative schemes, which focus on providing means to encourage

people’s autonomy and initiative, rather than simply giving out financial aid They target

people in fragile situations or who are seeking to attain self-reliance and benefit from

long-term programmes with a specific mentoring along the various steps

Most of the projects combine the purely social dimension with other initiatives -e.g support

to small business launch or job seeking, social integration through the preservation of natural

and cultural heritage etc, always aiming at a balanced, more equitable and enterprising society

Since social and financial exclusion are so closely connected, banking support and access to

basic banking services are important components of the programmes developed, as well as

financial education Microcredit is also increasingly included, either for the benefit of

microentrepeneurs or for social purposes

Microcredit in Europe – Experiences from savings banks

Microcredit has become a key topic on the European social and economic agenda It is increasingly recognized by European actors –EU institutions, National Governments, the financial sector and civil society organizations-, as one of the solutions to improve access to finance for micro and small enterprises and to fight social exclusion

Indeed, microcredit in Europe plays a significant role in expanding access to financial services of micro and small enterprises, but it also has a strong social component allowing people at risk of social exclusion

to engage in an economic activity In this sense, microcredit contributes to reaching the goals of the Lisbon agenda, tackling the issues of business development, job creation and social cohesion through the expanded provision of access to finance

European savings banks are important players in their regions both in providing access to credit to micro and small-sized companies and in putting in place social financial schemes that specifically target individuals at risk of financial exclusion

On their role towards micro and small enterprises, savings banks have - for more than a century -provided easily accessible small-scale loans ranging, for example, from a very small loan for a start-up needing hardware to develop its business, up to a larger amount for a migrant entrepreneur wishing to set up a shop Thanks to their proximity, savings banks are close partners of these businesses, providing not only a

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full range of financial services (credit, savings, payments and insurance) but also dedicated business support services to accompany the enterprise in its development or possible expansion

In this context, ESBG, as the European voice of savings and retail banking, fully supports and encourages the increasing development of microcredit initiatives in Europe In particular, ESBG stands ready to share its members’ best practices and explore ways to collaborate with other microcredit providers, in order to further increase the level of access to financial services, for all European citizens and entrepreneurs

ESBG publication on Microcredit provides an overview of the current practice of microcredit within the European savings banks sector The case studies presented show these types of interventions and are grouped in four main models: the microcredit subsidiary model, the balance sheet-based model, the

Projects are developed on a local level, based on the banks’ close relationship with

stakeholders and beneficiaries and their thorough understanding of the local socio-economic

context The multiplicity of these focused actions creates decisive input for local economic

and social dynamism

Through the Lab, European savings banks wish to share with interested parties, stakeholders

and other businesses the key success factors and lessons they have learnt when getting

involved in local social projects, seeking to empower socially and financially excluded people

They hope they could serve as guidelines for other European savings banks, intending to get

involved in social schemes or as references for those considering extending their existing

programmes They could also inspire other businesses interested to join and enrich existing

schemes or to launch new ones, e.g temporary employment agencies, insurance companies,

services companies (telephone, gas, water) etc, as well as stakeholders e.g social proximity

networks, start up networks, local authorities etc

2 Process and deliverable of the Lab

An analysis was made on the basis of national social inclusion schemes/experiences

developed or supported by European savings banks, at national or local level6:

(France)

Mid 2006, Groupe Caisse d’Epargne launched a prevention of banking exclusion

programme, Parcours Confiance It temporarily supports individuals and professionals

who face social or financial difficulties and cannot find solutions in the

“conventional” banking system It provides a two-year comprehensive support

package, including tailored banking services that are essential to maintain social

integration (account-keeping, means of payment) or to run microenterprises, and

microcredit facilities In addition, it offers personalised social support through the

intervention of social workers and/or specialised voluntary organisations, and an

educational dimension through workshop on budget management and banking

More information from www.federation.caisse-epargne.fr/parcoursconfiance.htm

(Austria)

At the end of 2006, a new savings bank started to operate in Vienna with one

objective: to provide bank accounts to those people who are no longer banked,

because of economic and/or social difficulties such as unemployment,

overindebtness, homelessness etc ERSTE Foundation initiated and financed this

project and works in close cooperation with counseling and charitable organisations,

primarily Caritas and debt counseling services, to identify eligible people The service

provided is a basic account with a bank card, which does not offer overdraft facilities

It also includes a basic insurance coverage It is offered for three years with the hope

that after this period, clients can reintegrate the “conventional” banking system

(Spain)

The BBK Gatze Lanbidean Foundation programme aims at promoting the creation

of jobs amongst the young people in the region of Bizkaia It offers support for the

self employed, through assistance to start up business projects, including the

financing aspects, until the consolidation of these projects It also provides job

counseling services and facilitates access to first jobs, and extends its services to

recycling programmes for qualified and unqualified younsgters

More information from:

https://portal.bbk.es/servlet/Satellite?pagename=Negocio_Ext/GenericoPI/GenericoPITe

mplateExt&c=GenericoPI&cid=1222942609807&localizador=%231158929044991&hizkunt

za=_cast&idVolver=1158929044991&tipoVolver=Page

Castilla de la Mancha (Spain)

Caja Castilla de la Mancha is the main banking partner of BEM Centres BEM

Centres offer one single space where tailored services for migrants are available, with

the objectives to promote the social and financial integration and development of new

residents, accompanying them and helping them in the process of adaptation and

personal growth These include financial products (e.g personal loans, giros and

transfers, debt consolidation etc) and communications services (facilities for long

distance calls or recharging mobile phones), as well as insurance or legal assistance

services

http://www.grupobem.com/quienes_somos/partners.php?idioma=es

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- Caixanova advice and reception programme for immigrants (Spain)

Caixanova programme seeks to help migrants in a social exclusion risk to cover their

basic physical, housing, education, psychological and social needs in order to increase

their autonomy and independence, allowing them to settle in a satisfactory way It

offers support for temporary housing, labour inclusion -including through

microcredit- and cultural integration, as well as legal information and advice, language

classes etc

More information from:

http://www.centrosocialcaixanova.com/obs/es/index.php/accion_social/detalle/08_02_cen

tro_de_iniciativas_sociales_caixanova

city of Offenbach, Savings Bank of Offenbach (Germany)

The Ostpol-Credit scheme supported by the Saving Bank of Offenbach targets

microenterprise start-ups, and also young graduates from the local University of Art

and Design Beneficiaries from the scheme are based in a business start-up campus

located in the structurally weak eastern inner city area The Ostpol loan is part of a

package of services, including training, business advice, offices, network and contacts

etc, provided through a local network of professionals The involvement of the local

public authorities (City of Offenbach, regional young entrepreneurs and

industry-related associations, local Chamber of commerce and industry etc) reflects the

importance of the scheme to support the economic and urban development of the

city and of the region

Two other initiatives were also part of the overview:

- The “4 Wände und mehr” (“4 walls and more”) project launched by the Austrian

Bausparkasse, which will support institutions working with homeless people or those

threatened by homelessness (www.sparkasse.at);

- the work currently being developed by Lloyds TSB in the UK with the Community

Finance Development Association, which seeks to identify a different model for

addressing financial inclusion

Core principles shared by the different schemes which, in the savings banks’ experiences,

were key building stones to reach their objectives, were identified They were discussed with a

group of stakeholders including mainly social NGOs – Caritas Europe, European Liaison

Committee for Social Housing-Cecodhas, European Consumer Debt Network, Secours Catholique - Réseau

mondial Caritas, Finances et Pédagogie, Réseau France Active as well as CSR Europe, and DG

Employment, Social Affairs and Equal Opportunities of the European Commission, and were

enriched based on their experience developed both at European level and at national level7

A summary of the key success factors and lessons learnt is presented below

IV SUMMARY OF THE LAB FINDINGS

1 There is ground to develop specific support programmes for the population

at risk of social exclusion

A pragmatic approach to fight social exclusion leads to the recognition of the benefits of

schemes targeting groups specifically at risk This should however not be read as a position of

principle in favour of differences of treatment for different types of clientele It is important

not to fully detach services provided for groups “at risk” from regular clients, which could

increase further the feeling of exclusion The overall objective of the involvement of savings

banks is to work towards inclusive financial sectors and to increase the level of banked people

Through the development of specific support programmes, packages of adapted services and

support, in a variety of fields, are made available at a single “counter” enabling beneficiaries to

access comprehensive and tailored programmes, combining prevention, accompaniment and

follow-up Besides, services are offered in a way which matches the specific needs of the

population targeted e.g opening hours of centres for migrants, language skills of staff

The dedicated schemes are used as much to prevent social and financial exclusion as to

support integration or re-integration into the social and economic life Individual follow-up is

required, even though beneficiaries have left the support schemes

The development of dedicated schemes is undoubtedly a way to bank people who otherwise

would remain, or turn, unbanked, with the mid-term objective to enable them to (re)integrate

the conventional banking system

It is important to mention at this stage the communication aspect on the existence of such

dedicated schemes It seems that for some of the targets, especially the migrants, the “word of

mouth” channel and the strong links between members of a given community are the most

efficient means to reach the potential beneficiaries However, for a number of other groups,

and especially for the people suffering from social exclusion in a literal sense, and living in

isolation, information on these services must be made sufficiently and easily accessible

2 The fight against social exclusion requires an integrated approach of

individuals’ situation

Social exclusion is directly related to banking exclusion Citizens’ crisis situations are often not

caused by a single event or occurrence, but are the results and consequences of a series of

factors, all impacting on the social status of the individuals Being banked is one pivotal part

of the recovery process, e.g regular transfers to pay basic expenses such as rent, gas and

electricity bills or a bank account to which wages can be paid

That is why initiatives of a social nature developed, or supported, by European savings banks

do not exclusively focus on the banking aspects They often include a comprehensive set of

services: social/education/medical/employment/housing/insurance etc, but also cultural and

language support in the particular case of migrants Banking services in this context are not a

stand-alone offer but part of a package of advice and mutually reinforcing support services

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Banking support is a key component of these comprehensive programmes of social

integration

The overall objectives of the schemes are to enable beneficiaries to actively participate in

social and economic life and to reinforce their sense of responsibility, which includes helping

them managing their finances with confidence

Parcours Confiance Platform of services

3 A network of professional partners is needed to offer comprehensive

support

In order to propose an efficient package of quality services to beneficiaries, savings banks

involved in social schemes partner with public/private sector professional organisations,

experts in non-banking fields (insurance, employment, training, psychological, housing, debt

counseling service, welfare etc)

Private partners can be NGOs (Caritas in Austria), but also companies such as Adecco

France, the world leader in human resource solutions in the case of Parcours Confiance, or the

Vienna Insurance Group, an insurance company for Die Zweite Sparkasse, or business networks

(France active, Boutique de gestion in France), chambers of commerce in the case of BBK or

Sparkasse Offenbach Social foundations are also key partners in Spain Public stakeholders

can include municipalities or regions (Basque government for BBK, Offenbach City for

Ostpol-Kredit, Vienna municipality’s strong involvement in the case of Die Zweite Sparkasse), as

well as social services (e.g Caisse d’Allocations familiales for Parcours Confiance) or universities (eg

University of Art and Design, HfG in Germany)

Each of the partners is responsible in its own field of expertise, including banks

Complementary expertise is needed to leverage synergies

workshops about : relationship to banks, dealing with a budget…

Education

advice and coaching

loan transactions

In this context, the professional support provided by banks is restricted to the financial field,

be it banking facilities and products (microcredit, account facilities, loan, means of payment

etc) or financial advice/diagnosis/coaching No business plan for microentrepreneurs for

example

It is highly important to build bridges between partner organisations, for an efficient

coordination of the different dimensions of the schemes Support measures and services must

be developed in permanent cooperation with the partners, and there should be an ongoing

counseling relationship between involved institutions on a given individual case

Partnership network of the BBK Gatze Lanbidean Foundation programme

Ostpol – Credit Sparkasse Offenbach Operators

4 An important part of the schemes has to be devoted to the prevention of

social exclusion

The overall objective of the programmes aimed at fighting social and financial exclusion

include an important focus on the provision of basic social support for people in precarious

situations, e.g language skills for migrants, education on general money matters, support to

job seeking, debt mediation etc, in order to encourage self-reliance and prevent any

deterioration of their condition

Interventions are planned at the earliest possible stage of a potentially worsening situation and

the “detection” of individuals at risk is a joint responsibility of all participating partners, who

channel difficult cases to appropriate support schemes

One of the essential axes of the prevention of banking and social exclusion is the provision of

financial literacy skills It should not only reach beneficiaries once enrolled in the dedicated

schemes, but beyond, networks and organizations involved in the provision of social support

at large Financial education must be part of the core elements taken into consideration to

reach full social inclusion

European savings banks’ commitment to Financial education

Financial education is a key field of ESBG members’ contribution to society and interaction with

stakeholders They play a key role in educating people on finance and budget issues, far beyond the

scope of their clientele They are motivated by the strong belief that these initiatives contribute to

preventing social and economic exclusion and that citizens with a better knowledge of financial issues

are able to make informed choices, for products and services best tailored to their needs

Initiatives taken by ESBG member banks to improve financial literacy focus on all kind of public

(households/families, employees, children, older people, low-income part of the population, socially

excluded, etc) and cover all types of issues (budget planning, personal finance management, use of

payment instruments, borrowing, savings, investment and pensions, etc) An overview of programmes

5 The provision of support to (re)integrate the social and economic life is

temporary

The schemes launched are usually not intended as permanent solutions, but as means and

tools to get individuals out of a deteriorating situation Interventions are therefore planned at

the earliest possible stage, in a prevention mode

The overall aim is to foster beneficiaries’ autonomy and independence, rather than providing

long-term assistance The temporary support is used as a basis to adjust to the environment of

a new country, to start a working life and/or to (re)integrate into the “conventional” banking

sector once back to a healthy banking and social situation

Experience has shown that a problematic financial situation can be remedied within a given

period of time (3 years for Die Zweite Sparkasse, 2 years for Parcours Confiance), and that some

mild pressure to do so is a useful help

6 The development of projects on a local scale is a key element to deepen the

proximity relationship

Experiences demonstrate the efficiency of decentralised implementation/management of

initiatives at local level, as part of global and coherent social inclusion policy programmes The

proximity relationship and local connection are essential to bring the kind of support adapted

to the needs of the local population It also facilitates trust, both with targets and partners

Local social players are involved, and the work develops through a proximity network of

professionals, who have an in-depth knowledge of the local markets, their challenges and

opportunities, facilitating the definition of workable and sustainable solutions

Besides, these local networks can have positive effects on the local economic development

and social cohesion, including the employment and job creation policy It also creates

opportunities to develop cooperation with and benefit from support of public local

authorities The launch of the Ostpol-Kredit scheme in Germany for example is part of the

economic and urban development strategy of Offenbach One of the prerequisites to benefit

from the scheme is that the microentrepreneurs are located in a new urban infrastructure, the

Ostpol business start up campus, whose purpose is to attract microentrepreneurs and support

the launch of their business, with the ambition to economically revive the eastern inner city of

Offenbach, a structurally weak part of the region

8 http://www.esbg.eu/uploadedFiles/ESBG/CSR_Activities/financialeducation%20for%20screen.pdf

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The fact that people in need can also be reached by savings banks even in the most remote

areas –through Caja Castilla de la Mancha’s mobile bank branches for example in Spain – is

also a very important point in the context of financial exclusion

The branches network of Caja Castilla La Mancha

For the BEM programme, 23 multiservices branches in different towns of Castilla la

Mancha, Madrid, Valencia and Barcelona

TWO MOBILE BRANCHES

TO COVER THE FINANCIAL NEEDS

OF VERY SMALL RURAL AREAS

The local deployment of Die Zweite Sparkasse

Erste Bank, Tiroler Sparkasse, Salzburger Sparkasse, Kärntner

Sparkasse, Steiermärkische Sparkasse

7 The definition of categories of beneficiaries is requested to provide targeted

support

The social schemes developed by savings banks target individuals whose situation cannot be

handled at commercial, branch level: low income people unable to access conventional credit

and in precarious situations, persons in financial difficulty or at risk of sinking into debt,

microentrepreneurs unable to access conventional credit and assisted by a mentoring

network/an organisation specialised in small business creation etc

In this regard, partnerships with public/private authorities are required to identify groups in

specific needs and define adequate and tailored solutions It also leads to a better and more

precise analysis of the causes of exclusion and the development of appropriate prevention

policy responses

Social support/microentrepreneur networks therefore play a key role in the identification of

potential beneficiaries A recommendation from one of the participating, social organisations

can be a prerequisite to access the support scheme Mutual prescription of partners to

orientate beneficiaries to relevant schemes or to some of the services they offer, is also

organized, e.g Adecco/Groupe Caisse d’Epargne, Caritas/Die Zweite Sparkasse, University

of Art and Design/Sparkasse Offenbach

Participation to the schemes can be offered to clients and non-clients But it is still difficult to

approach the existing clientele (clients at risk) It is difficult to know where to set the

borders/which criteria to apply

The number of beneficiaries is usually limited since individualised support provided is

time-consuming and requires heavy resources

Network of counselling organisations, chanelling beneficiaries to Die Zweite

Sparkasse

identification of people eligible and in need of the support provided by the savings banks Since

October 2007, it has extended its collaboration with four new counselling organisations in Vienna,

both from the public and private sectors:

providing assistance to Viennese residents in distress;

- “Verein Dialog”, which offers support to drug addicts and their relatives;

- “NEUSTART”, an initiative aimed at delinquents;

- the “Wiener Hilfswerk”, which provides comprehensive counselling services to people in difficult

life situations

These organisations will select amongst their clients those without access to banking services and

continue to support them once they have become customers of the Sparkasse

8 Tailored services and products need to be proposed to beneficiaries

Personalised and tailored services are defined to meet the needs of each individual/beneficiary

(employment, housing, training, psychological help, budget supervision etc) The full package

of services can be proposed, or only a part of it

In order to better guide beneficiaries and provide them with long-term skills, education and

counseling can complement the delivery of basic banking services and products (Parcours

Confiance, Die Zweite Sparkasse)

Examples of financial and banking services and products offered:

- Parcours Confiance provides the tools enabling economically disadvantaged individuals and

entrepreneurs to become self-sufficient These tools include:

9 affordable banking services (loans, means of payments, saving accounts…)

9 financial education and coaching that enable individuals to use credit and means of

payments

9 social services (housing, job search…) in partnership with charitable organisations

Specific needs and services for microentrepreneurs, in partnership with mentoring

networks which provide small business support services (start-ups financing: access to

conventional loans -1 000 to 90 000 €-, professional account services)

Banking services essential to maintaining social integration: account keeping, means of

payment, on preferential terms + help in building precautionary savings + individualised

banking accompaniment + loans at specific conditions (from 300 to 12 000 €, 3% rate)

- Die Zweite Sparkasse:

9 Account solutions

¾ interest-bearing current account: basic account with a bank card (Erste Bank

ATMs), with no overdraft facility For these accounts, the customer pays a

deposit of EUR 9 per quarter, which will be fully refunded if the account rules are complied with

¾ investment account bearing higher interest rates

¾ building loan contract free of charge (s-Bausparvertrag)

9 Legal advice service, available once per quarter, providing consultation on issues

related to Austrian or European law, EEA law or Swiss law – for private or

professional purposes

9 Insurance

¾ accident insurance providing 24-hour cover of up to EUR 50,000,- in the

event of disablement and paying a benefit of EUR 5,000,- to dependants in the event of accidental death of the insured person

¾ homeowner’s insurance with private liability coverage at an affordable

premium (EUR 3 per month), and also includes a private liability coverage

- BBK support to young people entrepreneurship projects : start-ups financing loans of up to 30 000

€, subsidised interest rate (Euribor + 0,50), grace period depending on cash flow The

principle is that no worthwhile project should be denied financing because of a lack of

collateral

- BEM, financial services and communication centres for migrants: multiservices branches with a

range of adapted retail financial services, e.g; personal loans, remittances, debt

consolidation, credit cards, mortgages

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9 of a limited amount, from 1000 EUR, in order to build up the business

9 me of the micro-loan determined by doubling the sum of the guarantees put

9 maximum duration: 36 months

them for free,

r beneficiaries’ education purposes and as a first step towards responsibility

- O stpo -Credit scheme for microenterprise start-ups: l

presentation of the business concept to the

immediately takes a decision on commitment

first loan

gradually

volu

up

9 interest rate nom 10% p.a

Products and services have a moderate cost, since it is important not to offer

fo

An extensive range of services offered through Caixanova programme

9 Businesses have to dedicate specific resources and means

of handling difficult personal situations and benefit from specific regular training

INFORMATION AND ADVICE

and protection Documents

The development of social inclusion schemes requires a strong mobilisation of banks staff,

since they are operated by dedicated teams of bankers (Parcours Confiance) or a specific

structure for example run by volunteer employees and pensioners Die Zweite Sparkasse is

entirely managed and operated by employees and pensioners of Erste Bank and the savings

banks in the provinces, on an honorary basis Staff with specific skills and background is

devoted to the initiatives (e.g BEM staff of foreign origin, Parcours Confiance bankers have

experience

se

Die Zweite Sparkasse, a volunteer-run institution

The uniqueness of Die Zweite Sparkasse lies particularly in the fact that it is exclusively managed and

operated by volunteers From the managing board to the bank clerks and assistants, everybody who works

at Die Zweite Sparkasse for people in need of a helping hand does it on a voluntary basis

More than 200 of the current and retired staff of Erste Bank have volunteered to contribute their services

without receiving payment Many of the staff of the savings banks in Tyrol and Salzburg have also got

involved

The volunteer-based nature of the bank is another example of Die Zweite Sparkasse returning to its roots,

while sending a clear motivating message that our society can show solidarity, even in a modern

return-oriented context

SOCIAL SENSIBILITY

conferences, movies, theatre…

Labour integration (learning a job)

A dedicated Parcours Confiance structure

In order to provide the support package, each local Caisse d’Epargne sets up a dedicated Parcours Confiance

structure, which is invited to partner with local social workers and socially-oriented organisations in order

to benefit from their expertise (employment, housing, psychological help etc)

Finances et Pédagogie, a financial education body created and supported by Groupe Caisse d’Epargne, is in

charge of the education dimension, while a dedicated Caisse d’Epargne account manager is responsible for

the financial diagnosis and overall supervision of a small number of people on the programme He/She

analyses each situation, holds diagnostic interviews, makes a recommendation and participates in banking

decisions He/She also supervises the beneficiary daily situation until his/her situation has stabilised

Time needs to be spent on individualised service and coaching, in order to forge deep

relationships with beneficiaries It is therefore a long-term investment for banks, without

expected immediate return

The savings banks’ model which exists in a number of countries, such as in Spain, are well

suited to develop such social inclusion schemes, in compliance with their charter according to

which parts of the profits are allocated to social activities and community projects

In Spain, the savings banks’ model enables them to allocate to community projects the remaining parts of

their profits not allocated to reserves, after having paid the corresponding taxes This return to society

distribution amounted to 23,5% in 2007 and is know as Obra Social, whose allocation, distribution, policy

and administration are decided independently by each savings bank

In 2007, Obra Social covered social and health assistance projects for 32%, the rest being dedicated to

culture and leisure (41%), Research and education (17%) and Historical and natural heritage (10%) In

2005 a study made by external consultants evaluated the impact of Savings banks’ social action in Spain

and showed how 96% of the Spanish population was covered by savings banks´ Obra Social This Obra

Social scheme represents an active cohesion element for the population since less inhabited areas, elderly

population and low income social groups are the primary beneficiaries

10 The evaluation of the impact of the schemes requires both qualitative and

quantitative indicators

Although most of the support programmes analysed are still at an early stage of their

development, it would be useful to already set up indicators to evaluate their impact and

benefits, both in terms of numbers:

- Number of beneficiaries and evolution over the years

- Types of services provided

- Length of presence of beneficiaries within the schemes

etc

and in terms of quality of the support provided:

- Follow-up of beneficiaries

- Viability of micro-entreprises supported

- Scheme beneficiaries entered as “conventional” clients in a bank

17

tc

E

Parcours Confiance Success stories

9 Young man, unemployed, finds a job thanks to Parcours Confiance He could buy a

motorbike to go to work with a small loan from Caisse d’Epargne

9 Middle-aged, divorced mother, with no allowance from her former husband, gets a

driving license thanks to a Caisse d’Epargne loan via Parcours Confiance

9 Unemployed young woman creates her own business thanks to Parcours Confiance’s

technical assistance and 40 000 € loan from Caisse d’Epargne

ANNEX 1

PRESENTATION OF SCHEMES USED BY A BASIS FOR THE ANALYSIS