Innovations in Social Finance: Transitioning Beyond Economic Value

Innovations in Social Finance
	Acknowledgments
	Contents
	Notes on Contributors
	List of Figures
	List of Tables
	Introduction
	Expanding Our Understanding of Value Through Innovations in Social Finance
		1 Introduction
		2 Outlining Innovation Within Social Finance
		3 Overview of the Collection
		References
	Exploring the Potential of Social Finance
	Social Finance in the Anthropocene
		1 Introduction: Why a New Paradigm?
		2 Entering the Anthropocene Epoch
			2.1 Ontology: Understanding Reality as Increasing Complexity
			2.2 Epistemology: From Linear to Complex Systems Thinking
			2.3 A Shifting Paradigm for Sustainable Co-Evolution
		3 Deconstructing Money
			3.1 Money Is an Agreement Based on Trust
			3.2 Monetary Means-Ends Reversal
			3.3 Social Finance Framed as “Redistribution”
		4 A Framework for Social Finance in the Anthropocene
			4.1 Learning from and Adapting to Nature’s Dynamic Systems
			4.2 The Goals for Finance to Serve
		5 Social Finance as an Emerging Sustainable Ecosystem
			5.1 Social Finance Increases Societal Resilience
			5.2 Increasing the Ascendency of Social Finance
			5.3 Agenda 2030
			5.4 Legislation
			5.5 Education
			5.6 Research
			5.7 Taxation
		6 Conclusion
		References
	Social Finance in Quebec: An Ecosystemic Approach to Financial Innovation
		1 Introduction
		2 A Brief Overview of the Social Economy in Quebec
		3 Social Finance Initiatives and Enabling Policy Measures: A Brief Overview
			3.1 Community-Based Funds
			3.2 Co-Operative Funds
			3.3 Labor Solidarity Funds
			3.4 Hybrid Funds
			3.5 Private Funds
			3.6 State Funds
			3.7 Local Development Funds
			3.8 Community Bonds
		4 A Formal Platform Collaboration: CAP Finance
		5 Key Lessons from the Quebec Social Finance Experience
			5.1 A Bottom-Up Approach: Responding to Demand
			5.2 A Process of Co-Construction and Co-Ownership Among Diverse Partners
			5.3 An Ecosystemic Approach with a Diversity of Tools Working in Collaboration
			5.4 Continuing Training, Research, and Knowledge Transfer to Strengthen Supply and Demand Sides
			5.5 A Coherent Policy Framework Built Through Ongoing Dialogue Between Government and Civil Society
			5.6 Mobilization of Support from the Labor Movement
			5.7 Maintaining the Focus on Local Realities and a Long-Term Vision of Sustainable and Inclusive Development
		6 The Challenge of Knowledge Sharing: An Example from Quebec and South Korea
		7 Conclusion
		References
	Social Finance for Women’s Entrepreneurship in Canada
		1 Introduction
		2 Social Finance
			2.1 Social Impact Bonds and Pay for Success
			2.2 Impact Investing
			2.3 Social Banking
			2.4 Microfinance
			2.5 Crowdfunding
		3 Canada’s Social Finance Ecosystem
		4 Methods
		5 Findings
			5.1 Objective
			5.2 Strategic Focus
			5.3 Fund Receivers
			5.4 Funding Process
			5.5 Resources and Services
			5.6 Social Finance Type
		6 Discussion and Conclusion
			6.1 Recommendations
		References
	The Role of Youth in Scaling Social Value Investing: The Case of Canada\'s National Social Value Fund
		1 Introduction
		2 Investment Approaches and Social Value Investing
			2.1 Overview of Venture Capital and Philanthropy Approaches
			2.2 Social Value Investing
				2.2.1 Systemic Approach and Organization-Agnosticism
				2.2.2 Stewardship and Impact-Adjusted Returns
		3 The Role of Youth
			3.1 Youth and Community Development
			3.2 Youth Community Development Approaches
			3.3 Case Study: The National Social Value Fund
				3.3.1 Systemic Approach and Organizational Agnosticism
				3.3.2 Stewardship and Impact-Adjusted Returns
		4 Discussion and Conclusion
		References
	Innovations in Social Investing
	The Community Bond Experience in Montreal, Quebec
		1 Introduction
		2 Context
		3 Social Economy Movement in Quebec
		4 Financial Ecosystem
			4.1 The Funding Ladder
		5 The Community Bond: A Short History
		6 TIESS Pilot Project: Goals, Process, Results
			6.1 What Are Community Bonds?
			6.2 What Is the Promise of a Community Bond?
			6.3 Documenting the Community Bond
		7 Toward the Institutionalization of Participatory Investment
			7.1 A Common Vision for the Development of This Innovative Social Finance Practice
			7.2 Responsible Practices and “Self-Regulation”
			7.3 A Common Front to Promote the Scaling Up of Community Obligations in Quebec
			7.4 Applicability in Other Jurisdictions, Transferability
		8 Conclusion
		References
	Let’s Get Explicit: The Emergence of Impact-Linked Returns in the Commercial Debt Market
		1 Introduction
		2 Narrowing in on the Most Relevant Parts of the Value Chain
		3 An Overview of Available Mechanisms
			3.1 Sustainability-Linked Loans: Impact Pricing Comes to Wall Street
			3.2 Impact-Linked Returns in Private Market Impact Investments
			3.3 An Impact-Linked Deal in Practice: Being BOLD
		4 Summary and Comparison of Presented Mechanisms
		5 Discussion
			5.1 Common Foundations
			5.2 Challenges and Opportunities for Deeper Adoption
		6 Conclusion
		References
	A University Model of Social Finance: Reflections on the University of Edinburgh’s Social Investment Fund
		1 Introduction
		2 University Social Investments, in Historical and Institutional Context
		3 Case Study—The Edinburgh Social Investment Fund Model
			3.1 Background
			3.2 Development of the Social Investment Fund
		4 Discussion of Key Innovations
			4.1 Innovation 1: Whole-Institution Approach to Social Change
			4.2 Innovation 2: New Finance Flows
			4.3 Innovation 3: Collaborative Model
		5 Conclusion
		References
	Opportunities in Patient Capital Financing
		1 Introduction
			1.1 Asset Classification
		2 History of Patient Capital in Institutional Finance
			2.1 Emergence
			2.2 Patient Capital in Pension Funds
		3 Benefits of Use
		4 Patient Capital in the Private Markets: Toward Sustainable Outcomes
			4.1 Patient Debt: Fiducie du Chantier de l’économie sociale
			4.2 Venture Debt in Quasi-Equity: The European Investment Bank (EIB)
			4.3 Revenue Sharing in Quasi-Equity: Mirova Natural Capital Land Degradation Neutrality Fund
			4.4 Repayable Grant: ABSCAN First Nation’s Precursor Housing Fund
			4.5 Debt Guarantees: Garantie Solidaire Program
		5 Conclusion
		References
	Digitalizing Social Finance
	Inside Money Creation in the Digital Era
		1 Introduction
		2 What Is Money?
		3 Lex monetae and Network Effects
		4 “Inside” and “Outside” Money
		5 The GFC and the Emergence of New Suppliers of “Inside Money”
		6 Are “Cryptoassets” Money?
		7 Conclusion
		References
	Social Finance Investments with a Focus on Digital Social Business Models
		1 Introduction
		2 Theoretical Background
			2.1 Business Model Innovation
			2.2 Digitalization
			2.3 Social Finance
		3 Empirical Analysis
		4 Findings
			4.1 Proportion of Tech-Related Investments
			4.2 Fields of Investment Activity
			4.3 Specific Fields in the Database
			4.4 Technological Capabilities
			4.5 Digital Social Business Model
		5 Conclusion
		References
	From Community Bank to Solidarity Fintech: The Case of Palmas e-Dinheiro in Brazil
		1 Introduction
		2 Background—From a Local Bank to a Replicable Model
		3 Digital Social Currency—Questioning the Limits of the Paper Format
		4 First Digital Experience—Partnerships and the Lack of Control Over the Platform
		5 Palmas e-Dinheiro—A Solidarity Fintech Experience in Brazil
		6 The Case of Banco Mumbuca—The Largest e-Dinheiro Operation
		7 Conclusion and Lessons Learned
		References
	Social Finance and Agricultural Funding
		1 Introduction
		2 Theory
			2.1 Institutional Roles at the CSAs
			2.2 A Debt Contract Model of CSAs
		3 Farmers and Social Finance: Practical Examples
			3.1 Startup with a Crowdfunding Campaign
				3.1.1 Finding Consumers and Investors in One Step
				3.1.2 Case: MyFarm Harta
			3.2 Working Capital Finance
				3.2.1 Subscription Systems: Lessons from Hungarian CSAs
				3.2.2 Prepaid Baskets on Cooperative Webshops
				3.2.3 Online Adoption Projects
				3.2.4 Case: Bio Dió
			3.3 Investment Loans Through Peer-to-Peer Lending
				3.3.1 Peer-to-Peer Lending Platforms
				3.3.2 Case: ACRE
		4 Lessons Learned
		References
	Blockchains in Social Finance
	Public Governance of the Blockchain Revolution and Its Implications for Social Finance: A Comparative Analysis
		1 Introduction
		2 Social Finance, Innovation & Blockchain
		3 Adapting the Regulatory Framework for Blockchain
			3.1 The EU
			3.2 Israel
			3.3 East Asia and the Philippines
		4 Blockchain in Action
		5 Conclusions
		References
	Blockchain Consortia for the Social Good: An Introduction for Non-Technical Audiences
		1 Introduction
			1.1 Chapter Description
			1.2 Ant Financial
			1.3 Bloxberg
		2 Consortia as New Use Cases Beyond P2P and B2B
		3 Methodology
		4 Literature Review
			4.1 Blockchain
			4.2 Blockchain Consortia
		5 Blockchain in Finance and Social Platforms
			5.1 Blockchain Basics
			5.2 Investment in Blockchain
			5.3 History of Blockchain Consortia
			5.4 Technology Penetration
		6 Hyperledger
		7 Corda and Its Impact on Sustainable Finance
			7.1 Corda’s Applicability for Sustainable Finance in the Field of Improved Public Services
			7.2 Consortia Development on Corda
		8 Results and Case Studies
			8.1 Private Sector: Ant Financial
			8.2 Academia: Bloxberg
			8.3 Fair Ai
		9 Corda
			9.1 Renewable Energy Certificate Trading
			9.2 SME Financing
		10 Discussion
			10.1 Risks and Negative Impacts
		11 Conclusion
			11.1 The Future of Blockchain Consortia
		Appendix
		References
	Informational Efficiency and Cybersecurity: Systemic Threats to Blockchain Applications
		1 Introduction: Informational Efficiency of Cryptocurrencies Markets and Technology Threats to Social Impact Finance Intermediaries
		2 Literature Review: Crypto-Markets and Informational Inefficiencies
			2.1 Bitcoin, Blockchain, and the Rise of Crypto-Hacking
			2.2 From the Efficient Market Hypothesis to the Fractal Markets Hypothesis
		3 Detecting Informational Inefficiencies in Crypto-Markets
			3.1 Methodology
			3.2 Key Findings
				3.2.1 R/S Analysis and V-Statistic
				3.2.2 Hacking Events
		4 From the Evidence of Markets Inefficiency to Risk Transmission in Social Impact Finance
		5 A Path for More Secure Applications of Crypto-Assets in Social Finance
		References
	Governance and the Role of Institutions
	Who Should Fund Social Innovation?
		1 Introduction
		2 The “Who” and “What” of Social Innovation
			2.1 What Is Social Innovation?
			2.2 Who Innovates in Social Services? Who Funds Innovation?
			2.3 Who Should Fund Social Innovation?
			2.4 The Argument from Responsiveness
			2.5 The Argument from Mission
			2.6 The Argument from Risk
		3 Conclusion and Further Thoughts
		References
	The Financial Intermediary Role of Peer-To-Peer Lenders
		1 Disruption of Financial Intermediation
			1.1 Business Models of Alternative Finance
			1.2 Comparison of Banks and P2P Lending Platforms
		2 Market Overview
		3 Relevance of P2P Lending
			3.1 Transaction Costs
			3.2 Information Asymmetry
			3.3 Liquidity Shocks
			3.4 Benefits of P2P Lending
		4 Empirical Results on P2P Lending
			4.1 The Role of P2P Lending
			4.2 Factors Influencing Investment Decisions
			4.3 Performance of P2P Portfolios
		5 Regulatory Framework
		6 Summary
		References
	The Role of Social Financing in Sustainable Development: The Case of Nigerian Co-operatives
		1 Introduction
		2 Conceptual Clarifications
			2.1 Cooperatives and the Social Economy
			2.2 Financial Services and Social Financing
			2.3 Sustainable Development
		3 Social Financing and the Nigerian Cooperative Movement
		4 Challenges of Social Financing/Cooperatives in Nigeria
		5 The Intersection Between Cooperatives, Social Financing, and Sustainable Development in Nigeria
		6 Social Financing in Other Developing Countries
			6.1 India
			6.2 Kenya
		7 Prospects of the Cooperatives and Social Financing in Nigeria
		8 Conclusion and Recommendations
			8.1 Upward Review of Cooperative and Allied Legislation in Nigeria
			8.2 Improved Supervision
			8.3 Integration of the Structures of Conventional and Social Finance
			8.4 Integration of Programs
			8.5 Personnel Planning and Development
		References
	Evaluating Impact Investments: Frameworks and Applications for Social Ventures
		1 Introduction
		2 Social Impact Assessment in Impact Investing: Concepts, Methods, and Barriers
		3 Research Design
			3.1 Case Selection and Description
			3.2 Data Gathering and Analysis Process
			3.3 Data and Results
		4 Findings
		5 Discussion
			5.1 Qualitative-Based Process
			5.2 Validation and Standardization of the Framework
			5.3 Integration of Qualitative Assessment in the Impact Investment Process
		6 Conclusion
		References
	Social Investment in the UK: The Emergence of a Hollow Field
		1 Introduction
		2 Field Theory and Institutional Work
		3 The Development of the Field of Social Investment in the UK 1997–2020
		4 Activity Levels in the Field of Social Investment
		5 Key Actors and Their Institutional Work
			5.1 Social Investment Task Force (and Successor Bodies)
			5.2 Big Society Capital
			5.3 Sir Ronald Cohen
		6 Hollow Fields Emerging from Institutional Work
		7 Conclusion
		References
	The New Venture Philanthropy
		1 Introduction
		2 Where Does Venture Philanthropy Stand Within the Philanthropy Industry?
		3 Innovations of Venture Philanthropy
		4 Organizational Structure of VP
		5 Impact Measurement
		6 Risks and Critics
		7 VP in Europe
		8 Discussion and Conclusion
		References
	Index