Banca Prossima - Alessandra Dalcolle

Banca Prossima - Alessandra Dalcolle

• 1.
  Presentation to theSocial Innovation Summer School San Sebastian, July 2008
• 2.
  Outline The “Third”sector in Italy The need for a dedicated bank November 2007: Banca Prossima is launched June 2008: the first results
• 3.
  Banca Prossima OnNovember 2007 Intesa Sanpaolo created Banca Prossima as the first European bank fully dedicated to the nonprofit sector. Banca Prossima is a bank and will operate exclusively by lending and not grantmaking. Intesa Sanpaolo settled on Banca Prossima euro 80 mn in equity and over 100 of its professional staff , chosen both for their skills and for personal experience as volunteers in nonprofit organisations Banca Prossima will retain all its earnings : a share has to maintain equity in order to ensure economic sustainability the remaining share will feed the Fund for the Development of the Social Enterprise. The Fund brings about mutuality across all client Organisations and it enables lending towards borrowers or projects that would otherwise be priced out of credit .
• 4.
  Art 4 –Purposes of the Company “ (...) the Company’s purpose shall be the creation of social value , ensuring at all time the sustainability of its operations (...). The Company shall finance the most deserving non-profit initiatives aimed at providing services to individuals, disseminating culture and education, promoting access to and safeguarding the environment and the arts and providing access to credit and employment. The Company shall cooperate with public and/or private entities on initiatives aimed at promoting the common good by making available its human and financial resources . The Company shall undertake to make its products, services and funding schemes available in Italy, as far as possible, and subject to the necessary modifications, to the overseas countries where the Intesa Sanpaolo” banking group is present. ”. From Banca Prossima’s Articles of Association:
• 5.
  Widespread presence asa member of a large Group Over 85 relationship managers currently bring Prossima’s services at the customers’ door. In order to offer full services anywhere Banca Prossima also avails itself of all the skills and the geographical presence of the Intesa Sanpaolo Group. Financial services brought to the organisations and to 60 dedicated “financial corners” of Banca Prossima Full availabiliy of branch operations Direct access SOCIAL ENTERPRISES and COMMUNITIES Internet banking Phone banking 6,000 Intesa Sanpaolo branches 85 Relationship managers
• 6.
  Tailor-made valuation toolsSocial enterprises do not usually have strong equity and may lack financial professionals, so they need specialised valuation tools. Banca Prossima’s valuation model does not contrast with standard banking valuation models as it completes them with elements which are typical of the nonprofit world (such as fund raising capability, success in attracting government and private grants from foundations, the share of market revenues, the governance model). It thereby opens a new chapter in the valuation tools for the social enterprise. The Rating model for the Social Enterprise developed by Banca Prossima considers the enterprise as the centre of a network of relationships which link it to society.
• 7.
  In Banca Prossima’sgoverning structure a special place is reserved for nonprofit rappresentatives . In the “Solidarity and Development Committee” sit scholars, managers or professionals of the nonprofit sector . Its main tasks are to contribute to the design the operation strategy for the Fund for Development of the Social Enterprise and to assign targets and assess effectiveness of Banca Prossima’s operations. Members Felice Scalvini, lawyer, promoter of the law for the Social Enterprise Arnaldo Borghesi, investment banker, financial counselor to foundations Pierpaolo Donati, professor of sociology of the family Johnny Dotti, retired president of CGM cooperative network Costanza Fanelli, pioneer in cooperation for women Gianni La Bella, founder of Comunità di Sant’Egidio Antonio Mandelli, retired president of CdO cooperative network Carlo Secchi, professor of economics Governance structure open to the Third sector
• 8.
  First results atthe of June 2008 (1/2) At the end of June Banca Prossima is already working with the first 2,145 non profit organizations , over 60% of which are new clients for Intesa Sanpaolo group. Lay organisations are more frequent (70% of all clients) mostly in the form of Associations for Social Promotions, Registered and non Registered Associations (over 50%). Customer distribution follows the location of non profit organizations in Italy: 50% in Northern ltaly, 30% in the South and 20% in the Central regions . The more frequent sectors of activity are Social Welfare and Education/Training and Research (49% in total) About euro 150 mn loan requests are being processed by Banca Prossima’s credit department
• 9.
  First Results atthe of June 2008 (2/2) company credit/debit card (20% of clients have at least one ) remote banking to make and receive payments (over 15% of clients are using it) advance payments on credits towards Local Authorities (mostly required by Social Cooperatives) mortgages to finance redevelopments and new real estate (mostly asked by associations and foundations) low-risk liquid investment products (mostly by cash rich clients)
• 10.
  Fund for Developmentof the Social Enterprise At the end of April 2008 about 20% of the Fund is being used as a guarantee to over one hundred loans for a total amount of nearly 9 million euro Associations are the more frequent users of the facility By activity, social welfare and diversified insitutions are the more needy 100 Total 23 h) more than one 22 g) religion 2 f) employment of disadvantaged individuals 11 e) social cooperatives 1 d) research 26 c) social welfare 3 b) education 12 a) free time, (sport, travel, events ...) % of use of the Fund By Activity 100 Total 32 e) Other 2 d) religlious organisation 11 c) foundation 37 b) association 18 cooperative % of use of the Fund By Type of Institution
• 11.
  Network projects: PANPAN - Progetto Asili Nido (nursery centres) starts in 2005. Target: create 500 cooperative nursery centres all over Italy with an adequate price-quality ratio. Intesa Sanpaolo creates a Consortium with the major Networks of Social Cooperatives: FIS CdO, Legacoop, CGM . The Consortium selects, trains and supports the entrepreneurs up to the opening of the nursery and also guarantees up to 5% of the start-up loans. Intesa Sanpaolo completes the training with a finance module and grants up to euro 100,000 each nursery without any personal guarantee from the entrepreneurs. In just over 3 years 280 nurseries have opened all over Italy. None of the loans has defaulted . 1800 nursery teachers (30 years of age on average, all of them with a degree and/or specialised training) work for PAN where babies from 7000 families are hosted . PAN is the largest network of welfare services for up to 3-year old in Italy.
• 12.
  A New Networkproject: Al.Fa. “Dopo di noi” The next challenge of the PAN consortium model is concerned with another top Italian emergency: providing services for mentally disabled people who survive their parents . The innovative approach, the sensitivity of the matter, the long life-expectancy of mentally disabled people make sheltered residence for mentally disable persons who survive their parents the hardest challenge: a true attempt at the frontier of the Social Enterprise . ANFFAS (the largest organisation of families with mentally disabled dependants in Italy), Comunità Solidali (a network of Social Enterprises with a specialisation in care of mentally disabled patients) and Banca Prossima have created Al.FA, ALtra FAmiglia dopo di noi , the first social enterprise in Italy, with the aim to open 100 sheltered residences in two years hosting 6-700 patients.
• 13.
  In the pipelineCommunity Sports National platform to develop Microcredit organisations Youth Tourism Platform for Fundraising Social housing (self-builders coop network)