Triodos Bank Research Articles

Transaction Monitoring Netherlands: Fighting financial crime through data collaboration and advanced analytics

This paper discusses the experience of Transactie Monitoring Nederland (TMNL) — a collaboration between ABN AMRO, ING, Rabobank, Triodos Bank and De Volksbank, established in July 2020 to enhance financial security and compliance within the Dutch financial sector. The paper explores TMNL’s impact, the key lessons learned from its implementation and operation, best practices and its potential future role in safeguarding the integrity of the financial sector. As the paper explains, there is a growing consensus that more can be done to strengthen the framework for fighting financial crime through public–private partnerships and increased data/information sharing. To this end, TMNL works to identify potentially unusual transaction patterns that are not visible to individual banks in isolation, underscoring the significance of collaboration and information sharing among financial institutions (and with other key players in the prevention ecosystem), and developing a united front against financial crime. The paper calls for the integration of artificial intelligence and machine learning in identifying complex patterns and anomalies in transaction data and emphasises the need for this to happen in a secure, sustained and viable fashion. It also underscores the ongoing need for regulatory adaptability, arguing that as financial crimes evolve, regulatory frameworks must be dynamic to address emerging challenges effectively. In conclusion, the paper provides valuable insights into the successful implementation of collaborative compliance efforts and the continuous adaptations required to combat financial crime.

Effect of Green Finance on Environmental Performance of Banking Institutions: A Critical review

Effect of Green Finance on Environmental Performance of Banking Institutions: A Critical review

The role of regional banking systems in promoting sustainable development: challenges and opportunities

Regional banking systems play an essential role in sustainable development by financing environmentally and socially responsible projects. This article provides a comprehensive literature review and case studies of successful regional banks from various countries, including Triodos Bank (Netherlands), New Resource Bank (USA), and Sberbank (Russia). The analysis reveals that regional banks can contribute significantly to sustainable development by providing financing for renewable energy, organic food and farming, and social housing. Moreover, the study shows that regional banks can help to alleviate poverty and improve the standard of living for marginalized communities. The findings have important implications for policymakers, as regional banks can play a critical role in achieving the United Nations' Sustainable Development Goals. Furthermore, the study contributes to the literature on sustainable finance by providing empirical evidence on the role of regional banks in sustainable development.

Slim Skins: Towards a New Glazed Façade System

From early 20th century architects have envisioned transparent buildings such as Mies van der Rohe’s “skin and bones” concept and his 1921 proposal for the Friedrichstrasse Skyscraper competition in Berlin. One hundred years on, there is a much better understanding of the energy consumption implications of highly glazed buildings, yet architects, developers and users are still attracted to fully transparent facades. This paper sheds some light on the challenges to build with high performing glazing façade systems (originally called curtain wall systems) while efficiently utilising resources and reducing its manufacturing embodied carbon. This can be achieved by omitting the typical frame (mullions and transoms) and making the glass work structurally. Built examples by Octatube are Triodos Bank (Netherlands) and Echo Building (TU Delft- Netherlands). A further option that will focus on sustainable unitised systems is currently being explored by Octatube and TU Delft Building Technology graduation student. This is based on an optimised unitised frame integrated in between glazed units. These different systems will be assessed and compared against each other regarding its end-of-life recovery potential, embodied carbon and visual impact.

Sustainable and conventional banking in Europe.

At the end of the 20th century a new banking model, the so-called ethical banking, emerged becoming the maximum exponent of a socially responsible investment. The financial crisis in 2008 led to a distrust of the conventional financial system and consequently investors began to look with interest this new banking, which only invests in ethical activities and products, with social and environmental criteria, total transparency and a democratic management. The aim of this article is to analyze the economic structure of ethical banking, compared to that of conventional banking, by paying attention to its liquidity, coverage and solvency. Specifically, We compare the financial statements of Triodos Bank, the main European ethical bank belonging to the Global Alliance for Banking on Values, with two of the main conventional banks of each of the five countries in Europe in which it operates. To do this, we apply a financial and economic analysis to the period from 2015 to 2018, the means difference test and analysis of variance on an array of financial ratios and, finally, probit regressions. The results reveal that ethical banking is growing more than conventional banking and it presents greater liquidity and solvency, although, in general terms, its profitability is not higher. In conclusion, both savers and investors have guarantees that their savings are invested not only in a responsible but also in a confident way in ethical banking.

Banca Ética y Banca Tradicional. Comparativa entre Triodos Bank y Banco Santander

La crisis financiera de 2008 ha provocado cambios en la estructura bancaria tradicional, generando una desconfianza por parte de los ciudadanos con el sistema financiero tradicional, como consecuencia de ello ha surgido otro tipo de banca, la Banca Ética. El objetivo de este trabajo es estudiar si la Banca Ética puede llegar a ser igual de rentable que la Banca Tradicional, invirtiendo principalmente en valores sociales. Para ello, se realiza un análisis comparativo entre la Banca Ética (Triodos Bank) y la Banca Tradicional (Banco Santander). Para alcanzar el objetivo propuesto se realiza un análisis económico centrado en la actividad financiera de ambas tipologías de bancos durante el período 2011-2017 y se analizan el Balance de Situación, la Cuenta de Pérdidas y Ganancias y las Ratios de Liquidez, Endeudamiento y Rentabilidad de ambos bancos. Se comprueba que la Banca Ética no llega a ser tan rentable como la Banca tradicional, pero ha conseguido atraer a los clientes con sus inversiones sociales y la transparencia total de sus acciones financieras.

Ethical Versus Conventional Banking: A Case Study

The 2008 financial crisis has changed the structure of banking, generating public distrust in the conventional financial system. An alternative has emerged as a result of this lack of confidence. This alternative is known as ethical banking. A growing number of investors, asset managers, and financial intermediaries have incorporated sustainability considerations into their business practices. This paper discusses the origins of ethical banking and describes its primary characteristics. The goal is to determine whether ethical banking can be as profitable as conventional banking despite only investing in projects based on social values. A comparative analysis is performed to identify differences between an ethical bank (Triodos Bank) and a conventional bank (Banco Santander). The analysis was conducted to study the financial activity of both banks over a four-year period (2012–2015). The balance sheets, profit and loss accounts, liquidity ratios, indebtedness, and returns provided by both banks were analyzed. The results indicate that ethical banking is less profitable than conventional banking. Nevertheless, customers are attracted to the social investments and financial transparency that characterize ethical banking. Over the study period, Triodos Bank experienced a greater increase in the number of employees and the volume of loans and deposits than did Banco Santander. Triodos Bank invests in social and environmental projects. This investment approach makes it less profitable than Banco Santander.

Ethical Banking and Islamic Banking : A Comparison of Triodos Bank and Islami Bank Bangladesh Limited

Ethical finance and Islamic finance are the two important topics in the post global financial crisis market environment and in the context of sustainable development goals and circular economy. If Islamic finance is inherently ethical finance, then what remains the difference between the two is an interesting theme for investigation. Islamic finance is governed by universal and divine legal and moral principles and standards related to economic transactions. Contemporary Islamic financial practices are however, strongly criticized for giving precedence to legal forms over ethical substance and for the rising gap between moral ideals and practical realities. Ethical finance is a conscious human effort to reform finance and it embraces environmentally, socially and morally conscious practices. In this paper we select two banks, namely Islami Bank Bangladesh Limited (IBBL) and Triodos Bank. We perceive that the first is an ideal Islamic Bank and the second is an ideal Ethical Bank. We undertake an analysis of the content of balance sheet disclosures of the two banks and try to gauge the similarities and divergences in their business principles and practices. The analysis uncovers that the current practices of IBBL may far exceed other Islamic banks in terms of financial inclusion, microfinance, gender balance, SME financing and green banking while still being financially stable and profitable. However, Triodos Bank has some significant lead over IBBL regarding ethical practices since it only promotes sustainable businesses. If Triodos Bank exceeds IBBL in ethical expectations as we conclude, then it is far ahead of other Islamic banks in such comparison. The implication of our conclusion is that Islamic banking needs ethical reform and this can be benchmarked with Triodos Bank’s business model. For Islamic banks the correct approach would be to strike the right balance between ethics, moral standards, Sharī‘ah compliance and profitability. The Islamic banking model has in-built features to ensure Sharī‘ah compliance, and this can be enhanced through adopting sound ethical practices as well as dedicating efforts towards being environmentfriendly. The paper attempted to present some considerations which if present in Islamic banks would take them away from the criticism of being only forprofit in motivation. Triodos has balanced its for-profit and not-for-profit motivations letting the later to lead the first.

UK market ripe for investment

AS WE head into 2015, Renewable Energy Focus contributor Katharine Earley speaks to Triodos Bank about investment trends, including crowd-funding, community-owned energy and on-site energy generation.

The Upside of the Downturn: How Sustainable Banking Can Deliver a Better Future

ly as the current financial crisis has unfolded. Why? What makes these apparently unconventional financial institutions more crisis-resistant than their mainstream contemporaries? And can they offer a viable alternative, plotting a path for the future that other banks can follow? Sustainable banking is becoming a significant force in the world’s financial markets. The ten best-known sustainable banks in the developed world have assets of around $30 billion, not including the much wider-reaching, more mainstream institutions like cooperative banks. These commercially solid, growing banks focus on financing environmental projects, social entrepreneurship, and community businesses. Even though they operate in emerging markets, microfinance banks have realized extraordinary growth rates in both volume and profit. The total assets of all microfinance providers are estimated at $50 billion; they serve 150 million people in the developing world. As the sustainable banking industry has flourished, so have some of the key institutions driving it. Triodos Bank is one. Founded in the Netherlands in 1980, today it has offices in five European countries. Over more than two decades, the bank has built assets under management of almost $5 billion and grown by 25 percent per year, delivering a consistent profit. It has almost 10,000 sustainable businesses and projects in its loan book and close to 200,000 customers. Investors, customers, and commentators alike are increasingly familiar with this kind of solid growth. Perhaps more surprisingly, these organizations have been propelled forward by the credit crunch and the turbulence that followed it.

Viable social enterprise: an evaluation of business support to social enterprises

PurposeTo identify the challenges faced by UK social enterprises in their attempts to develop the kind of support needed to achieve their social, economic and environmental objectives.Design/methodology/approachThe history of social enterprise development in the UK is traced, focusing on some of the key problems of definition and complexity within the social enterprise sector. Examines some of the current problems facing social enterprises in terms of the provision of business support. Reports the results of a survey of 28 key informants working in 30 social enterprises (20 drawn from Triodos Bank’s client list, 10 non‐Tiodos Bank clients) to gather data relating to: business profile; technical profile; business support; evaluation of business support; and the role of social businesses in the UK and the quality and level of support available to the sector. Includes results for five organizations from two specific industry sectors for more detailed research (electrical and electronic waste refurbishment sector, care sector).FindingsThe results indicated that the current needs of social enterprises are not being met by the current provision for such organizations since such provision fails to address the strategic tension that exists between social and business purpose. Concludes with recommendation for providers of business support and advice to the social enterprise sector.Research limitations/implicationsThe sample was skewed towards organic related businesses (farming, wholesale/retailing of organic products) and fewer care‐related businesses than anticipated from national statistics were included.Originality/valueProvides important results based on research commissioned by Triodos Bank, an ethical and social bank that lends to social enterprises across the UK.

Financing the social economy: a case study of Triodos Bank

AbstractNonprofit 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 thatwhatTriodosdoesisbothinterestinginitself and indicative of ways in which social economy financing might develop in the future. Copyright © 2001 Henry Stewart Publications