Banks and Insurance Companies' role in the impact ecosystem
In the impact ecosystem, investing for impact puts their investee/grantee at the centre of investment decisions and focuses on the additionality of the impact generated; while investing with impact needs to guarantee a certain financial return on investment alongside the intended positive impact.
With their access to large pools of financial and non-financial resources (i.e. their wide network of stakeholders), as well as their expertise in financial management and in working with entrepreneurs, banks and insurance companies are in an advantageous position to implement strategies both for and with impact.
They can engage in a wide range of activities to generate societal impact. In addition to direct investments, they can also act as consultants, connecting the supply and the demand sides of the market, and as field-builders, leveraging their capacity and expertise to build infrastructure or provide non-financial support to other organisations or individuals.