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Banking on Shared Value: FSG release their latest shared value industry report

July 21, 2014

The potential to create shared value in banking through retail, commercial and investment banking is enormous. And although there is already a great level of interest and engagement by the banking sector, for example in Australia by the National Australia Bank, Bendigo and Adelaide Bank, and bankmecu, there is a vast amount of value on the table untapped.

As SVI states: “The banks that realise this potential will recast their role in society through a lens of mutual opportunity: an opportunity for banks to increase long-term profitability, and an opportunity for society to leverage the unique financial capabilities of banks to drive progress. This new approach will enable banks to capitalise on new opportunities and leverage their biggest asset—their core business—to address some of the world’s toughest challenges.”

Report overview

In the wake of the financial crisis, the relationship between banks and society has grown increasingly combative. However two crucial points have been obscured which the report highlights: banks are essential to solving today’s most pressing challenges and addressing those challenges is critical to the growth and success of banks.

Shared value co-founder Professor Michael E. Porter writes: “We have written this paper to help banks navigate this paradigm – to improve the understanding not just of what banks should do but also how banks can embed shared value within their day-to-day operation.”

The report outlines three areas that shared value opportunities exist:
– Furthering client prosperity
– Fuelling the growth of regional economies
– Financing solutions to global challenges

Yet many banks are leaving much of this value on the table.

Drawing on the experiences and insights of leading practitioners from the banking industry, including the National Australia Bank and Bendigo-Adelaide Bank, this paper highlights opportunities for banks to create shared value, and demonstrates how banks can capitalise on those opportunities by leveraging their unique expertise and resources while flexing in new ways that will be essential to their success in the 21st century.

Click here to read more and to download the report.


Image cred: Shared Value Initiative