The new giving: Impact banking is fishing at the wrong end of the market
Billions of euros are waiting to be given a new sense of purpose. But the topic of green and social investing is precisely where it would work: with wealthy customers.
The Triodos Bank is shutting down its operations in Germany, citing an inability to achieve significant scale in the market. The bank's departure highlights the challenges faced by sustainable and social banks in Germany, despite growing demand for impact investing. Many sustainable banks struggle to be profitable as they finance a limited universe of social or eco-friendly companies with smaller, more costly loans.
However, there is a large and growing demand for impact investing, particularly among wealthy individuals, with 80% of Gen Z and Millennials planning to make more impact-oriented investments. A gap in the market exists for a bank that can offer impact investing across all asset classes.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
