Summary of Ethical Banking. Knowing for what.

What is Ethical Banking?

Ethical Banking has been part of the business activities of the Raiffeisen banks in South Tyrol since 2000. Its guiding principles are solidarity, support for local initiatives and the promotion of self-help.
Through Ethical Banking, savings are collected and invested in projects that receive preferential financing. Together, the Raiffeisen banks and their customers contribute to creating a future worth living in - one where money is used responsibly and creates a positive impact.

How does Ethical Banking work?

With Ethical Banking, savers decide which sustainable sector they want their money to support. They can choose from several environmental and social financing lines, and their savings are used to provide preferential loans to projects within the selected area.
The favourable financing conditions are made possible in different ways: through savers choosing a lowe interest rate on their savings, and through the contribution of the participating Raiffeisen banks, which often only cover their costs and waive part of their potential profit.
The ability of savers to influence the financing conditions and choose the purpose of their savings is one of the key characteristics of Ethical Banking.
Projects financed through Ethical Banking are carefully selected by the Raiffeisen banks together with specialised partner organisations and associations. These partners contribute their expertise in the respective fields and ensure that each project meets the required ecological, social and ethical standards.

Why is it called Ethical Banking?

South Tyrol is a region with three official languages, which is why we chose a name that is understandable and recognisable across linguistic borders. The term Ethical Bankig remains the same in all three languages.
The concept of ethical finance gained international recognition in particular in 2006, when Muhammad Yunus, founder of the Grameen Bank and pioneer of microfinance in Bangladesh, received the Nobel Peace Prize. This award demonstrated the growing acceptance and importance of socially responsible banking models.
Today, several European financial institutions follow similar approaches. Ethical Banking maintains exchanges and collaborations with organisations such as ABS in Switzerland, GLS in Germany and Banca Etica, which serve as important examples of ethical and sustainable finance.

How can the customers see for what their savings are used for?

Transparency is one of the fundamental principles of Ethical Banking. Costumers can always see how their savings are being used and which projects are supported.
All projects financed through Ethical Banking - with the exception of the "Bäuerlicher Notstandsfonds" - are publicly presented. On our website and on our YouTube channel, we regularly share project examples, photos, articles and stories about the people and initiatives supported through Ethical Banking.
The idea behind this transparency is simple: savers should be able to see the real impact of their money and understand how their savings help turn ideas and visions into reality.

Where can I find Ethical Banking products?

Ethical Banking was developed in 2000 by the Raiffeisenkasse Bozen in South Tyrol, where the headquarters are still located today.
Since then, Ethical Banking has grown continuously. Today, numerous Raiffeisen banks throughout South Tyrol offer Ethical Banking products and enable their customers to invest their savings responsibly.
Under "Partner Banks", you can find athe nearest Raiffeisen bank offering Ethical Banking products.