The oldest form of banking
What is Community Finance?
Community finance is lending, borrowing, and resource pooling between friends, family, neighbors, and co-workers in social networks. This type of finance is often referred to as “informal,” which diminishes its complexity and importance. Formality is not solely a corporate domain. Therefore, we prefer “community” as it is finance that originates in, is led by, and is for the benefit of the community. This is a far more important point to highlight and an entry point into this form of finance than its alleged informality.
Solidarity economy
Community finance is at the heart of the solidarity economy. It is an everyday part of life for people living with low-incomes, extending beyond the popularized Rotating Savings and Credit Associations (ROSCAs). For many this is not just a way of getting by, it is part of their culture, how they get ahead and support their communities.
Yet, our exclusionary credit system does not recognize community finance. We are on a mission to fix that!
What we do
Community finance needs to be integrated into the mainstream lexicon and financial services. Addressing this at the systemic level is the only way to create finance for everyone. We do this through:
Capital
We leverage philanthropic resources to drive dollars into the social credit networks of low-to-moderate income individuals through our partner, Giving Credit.
Recognition
We recognize organizations that enhance and integrate community finance into their work.
Research
We conduct research on the role of community financial activities on the financial health of low-to-moderate income consumers.
Incubation
We incubate early-stage community finance innovations from ideas to incorporation.