What happened before: After their unexpected encounter on a dark, cold night in Toronto, Cheeky C and Great G decided to embark on a journey, each unknowingly with different destinations in mind. Cheeky C wants to discover her identity and purpose, while Great G aims to realize a vision of global health through the world of finance. The next day, they wander through Toronto, hoping to find initial clues. Bewildered, Cheeky C begins to question things that seem natural to us. At the lakeshore of Lake Ontario, she learns some facts about the power of banks and money that she had never considered before. However, it becomes increasingly evident that she has to confront internal struggles as well…
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Great G looks into the astonished eyes of Cheeky C. ‘Yes, this world is not a pony farm, to use a German saying, any German may forgive me for this hair-raising translation… Do you know how big JP Morgan’s investment into fossil fuel assets is?’
‘What? Fossil fuels? What is that?’
‘These are materials which lead to a rise in global temperature if you burn them in an excessive amount. This is what humanity is doing right now… “Powered” by money flows originating from specific banks. Often from those who are ranked highest in size and profitability.’
Great G shivers at the unpleasant thought. ‘This business model is comparable to the drugs a top student takes to outperform others in grade rankings while burning out internally. Nothing but unhealthy. So, what is your guess of JP Morgan’s fossil fuel investments?’
‘Ehh… I have no clue. And I am hungry…’
‘I give you the number as a starter. No worries, we will eat in about five minutes, with my friend. The number is big and hard to digest, so it’s good that your stomach is empty…’
This business model is comparable to a top student taking drugs to outperform others in grade rankings while burning out internally. Nothing but unhealthy.
She pauses dramatically, the effect slightly curbed by the hungry growling of Cheeky C’s stomach in the silence. ‘It is…nothing less than $434.154 billion![1] That’s as big as the whole 2023 government revenue of a country – for example, Albania in Southern Europe.’[2]
Cheeky C stares at her. ‘I am sorry, Great G, all that I can think about is Beaver Tails and being hungry…’
‘Okay, one last sentence before I turn into the great hero – Great G hero – who saves you from starving to death. You asked what a social bank is… You know what, to make it fast, let’s go to the website of the Institute for Social Banking. Just a second… Here!’
Her fingers perform a routined dance on the screen and finally stop. ‘Here it reads, bear with me: “Social Banking” describes banking and related financial services whose main objective is to contribute to the development of people and planet, today and in the future. First and foremost, this means simultaneously taking into account the social, environmental, governance, and economic impacts of activities on all levels, with the aim of reducing their negative and increasing their positive effects on the common good.”’
Great G takes a breath. ‘My God, what a long sentence… Is the author German? Now the most important part, keep this in mind as core explanation: “Social Banking means banking with the purpose of creating positive impact on society. It is not only about avoiding negative impact.”’[3]
Great G looks up. ‘The last sentence is crucial. Social banks don’t aim to make bad things less bad but aim to create good things right from the start. And how to ensure that, you might ask? Contrary to conventional banks, social banks have the strictest criteria in the world of finance to refrain from investing any money in harmful activities such as fossil fuels, the arms industry, child labour, etc. Instead, they put their money into projects thoroughly aiming at doing good for society.’
She takes the small hands of Cheeky C. ‘So, and that is the last thing before we dive into the breakfast buffet: This all might feel overwhelming. But there is this one impactful thing we can do as individuals against the harmful power of conventional banks. We can take our own finances out of their hands and start to use the power of our money mindfully. The easiest start is to open our bank accounts at a social bank. Everyone can do it. If you don’t know which one to choose, bank rankings by independent research institutions such as “Fair Finance International” can guide you. Opening a social bank account takes a few minutes but can change the world.’
There is this one impactful thing we can do as individuals against the harmful power of conventional banks. We can take our own finances out of their hands and start to use the power of our money mindfully.
‘Well said, Great G. Wanna restart in our marketing apartment?’ An amused, elderly man’s voice behind Cheeky C lights up a broad smile on Great G’s wrinkles and lets her jump up, reaching out her hands.
‘Ah, my friend is here! Finally! Let’s have breakfast together, you look as pale as North American bread, my Cheeky Child. There is so much more to explore and show you!’
Note: To avoid accusations of partisan advertisement and distractions from the actual message of this blog post, I refrained from telling the name of the bank we visited with our travel companions in this episode. However, if you really want to know it, I left enough traces for you to find out by yourself.
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Sources:
[1] See Banking on Climate Chaos Fossil Fuel Report 2023. 2023. p. 10. Available online from: https://www.bankingonclimatechaos.org/wp-content/uploads/2023/08/BOCC_2023_vF.pdf, last accessed 09 April 2024.
[2] See CIA. The World Factbook. 2023. Available online from: https://www.cia.gov/the-world-factbook/field/budget/, last accessed 09 April 2024.
[3] See The Institute for Social Banking. 2021. “Definition of ‘Social Banking.’ Available online from: https://www.social-banking.org/wp-content/uploads/2022/01/ISB_Definition_Social-Banking-2021_FINAL.pdf, last accessed 09 April 2024.
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