Financing the social economy: A case study of Triodos Bank

Nonprofit and voluntary sector organisations are taking an increasingly sophisticated approach to their financial management, including their banking requirements. While there have been signs that the mainstream commercial banks have been responding to those needs, recent years have also witnessed a number of initiatives taken by organisations with roots closer to the nonprofit and voluntary sector. One such organisation is Triodos Bank.

This paper seeks to explain what Triodos Bank does, paying particular attention to those unusual features of its operations which are likely to be of interest to managers of nonprofit and voluntary sector organisations. It is suggested that what Triodos does is both interesting in itself and indicative of ways in which social economy financing might develop in the future.