European Savings Banks Group
"CSR Lab"on Business involvement
to enhance social inclusion at local level


European Savings Banks Group “CSR Lab”
on Business involvement to enhance social inclusion at local level

I. G
ENERAL BACKGROUND

1. The European Alliance on CSR

At the occasion of the adoption of the Communication on CSR in March 2006
1
, the
European Commission launched the European Alliance on CSR. It invited enterprises to
publicly express their support and commitment to CSR by joining the Alliance. More than 260
companies now formally support this initiative
2
.

In the Communication, the European Commission also recommended that companies
supporting the Alliance should set up “open coalitions for cooperation“ to “explore and develop joint
operational projects, in partnership with relevant experts and stakeholders”. The objective should be to
define concrete CSR solutions/projects, in a number of priority areas, such as innovation and
entrepreneurship in sustainable technologies, products and services which address societal
needs, CSR and SMEs, integration of social and environmental considerations in business
operations, improving and developing skills for employability, diversity and equal
opportunities, dialogue and engagement with all relevant stakeholders etc. These working
groups are referred to as “laboratory meetings” (“labs”).

2. ESBG member banks’ commitment to CSR

Savings banks embody a “stakeholder” model, seeking at the same time to be profitable, but also
to bring value and return to the whole community of stakeholders which surround them -
suppliers, customers, employees and the local community in which they operate. Community
investment activities (improvement of living conditions, support to greater social cohesion,
education projects etc) are therefore an integral part of savings banks’ identity throughout
Europe and one of their distinctive features amongst retail banking institutions.

It is nowadays only one of the pillars of their broader, balanced and comprehensive CSR
approach, which increasingly include all the various CSR components –human resources, human
rights, relations with suppliers and customers, corporate governance, environment, community
and society- and cover a whole range of fields, such as financial literacy, proximity banking and
access to finance, microcredit, transparency and corporate governance measures, workforce
training and life-long learning, targeted actions to support SME clients business, CSR raising
awareness activities, introduction of ethical criteria in financial products, etc. As genuine and
long-standing socially responsible actors, European savings banks proved able to adjust and to
innovate, to diversify their socially responsible initiatives to anticipate stakeholders’ needs and
demands, in the evolving context and concerns of the society in which they operate
3
.






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II.
ESBG INVOLVEMENT WITH THE ALLIANCE

1. Public support to the Alliance

On behalf of its member banks, the European Savings Banks Group (ESBG) expressed its
public support to the Alliance at an early stage, reflecting their belief that initiatives led by the
European Commission in partnership with market players will lead to further progress in CSR
engagement and achievements
4
.

As for its individual members, 15 Cajas de Ahorros in Spain, Lloyds TSB in the UK, Erste
Bank in Austria, OTP Bank in Hungary, Banque et Caisse d’Epargne de l’Etat in Luxembourg,
Montepio in Portugal, Groupe Caisse d’Epargne in France and a number of German
Sparkassen officially became supporters.

2. Contribution to the High-Level meetings of the Alliance

European savings banks were represented, at the highest level, at the 2007 and 2008 High-
Level meetings of the CSR Alliance, convened jointly by European Commission Vice
President Verheugen (Enterprise and Industry) and Commissioner Spidla (Employment, Social
affairs and Equal opportunities). This was the opportunity to highlight some of the main CSR
achievements of European savings banks and to renew their commitment to the EU CSR
initiatives. It was specifically underlined at this occasion that ESBG and the European savings

banks:
- support the voluntary approach of CSR promoted by the European Commission and the
creation of an EU enabling environment, rather than a binding framework. They are
convinced that this approach will encourage EU companies, including savings banks, to
integrate CSR principles in their strategy and implement CSR processes at their own pace
and following their own priorities. Besides, this will avoid any costly and additional legal
requirements imposed on companies, which could prevent development and innovation;
- welcome the fact that the European Commission identifies companies as primary actors
on CSR. But the CSR concept must mirror the diversity of business practices developed
throughout the European Union, and put on an equal footing the achievements of
multinational, listed companies and the contribution of all other business actors -SMEs,
local companies, non-limited stock companies, publicly-owned companies, foundations,
etc They are an integral part of and contribute to the dynamism, growth and
competitiveness of the corporate European landscape. Diversity is also an asset as regards
CSR and there is a need for a better EU recognition of the local, medium and small-scale
dimension of CSR, as developed by savings banks.






4
For example of CSR initiatives developed by ESBG members: www.savings-
banks.com/uploadedFiles/ESBG/CSR_Activities/study%20esbg%20november%202007screenview.pdf
and specifically on the Environment:
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2





On this basis, ESBG and European savings banks are convinced that CSR can be a key driver
for social and economic development of the local communities and European regions, leading
to job creation and sustainable growth, thus contributing to strengthening the EU
competitiveness.

III.
DEVELOPMENT OF AN ESBG-LED LAB

1. Scope and objectives of the Lab

With the support of its members and interested stakeholders, ESBG has decided to bring an
active contribution to the Alliance, through the facilitation of a laboratory meeting around the
theme “BUSINESS’ INVOLVEMENT TO ENHANCE SOCIAL INCLUSION AT LOCAL LEVEL”. This
topic will fall under the EU priority “fostering innovation and entrepreneurship in sustainable
technologies, products and services which address societal needs”.

As part of their support to local and regional communities, European savings banks have a
long-standing experience of developing solutions to contribute to greater social cohesion, in
partnership with local stakeholders. Their involvement is directed to long-term,
comprehensive and innovative schemes, which focus on providing means to encourage
people’s autonomy and initiative, rather than simply giving out financial aid. They target
people in fragile situations or who are seeking to attain self-reliance and benefit from long-
term programmes with a specific mentoring along the various steps.

Most of the projects combine the purely social dimension with other initiatives -e.g. support
to small business launch or job seeking, social integration through the preservation of natural
and cultural heritage etc, always aiming at a balanced, more equitable and enterprising society.

Since social and financial exclusion are so closely connected, banking support and access to
basic banking services are important components of the programmes developed, as well as
financial education. Microcredit is also increasingly included, either for the benefit of
microentrepeneurs or for social purposes.

Microcredit in Europe – Experiences from savings banks
Microcredit has become a key topic on the European social and economic agenda. It is increasingly
recognized by European actors –EU institutions, National Governments, the financial sector and civil
society organizations-, as one of the solutions to improve access to finance for micro and small enterprises
and to fight social exclusion.
Indeed, microcredit in Europe plays a significant role in expanding access to financial services of micro
and small enterprises, but it also has a strong social component allowing people at risk of social exclusion
to engage in an economic activity. In this sense, microcredit contributes to reaching the goals of the
Lisbon agenda, tackling the issues of business development, job creation and social cohesion through the
expanded provision of access to finance.
European savings banks are important players in their regions both in providing access to credit to micro
and small-sized companies and in putting in place social financial schemes that specifically target
individuals at risk of financial exclusion.
On their role towards micro and small enterprises, savings banks have - for more than a century -provided
easily accessible small-scale loans ranging, for example, from a very small loan for a start-up needing
hardware to develop its business, up to a larger amount for a migrant entrepreneur wishing to set up a
shop. Thanks to their proximity, savings banks are close partners of these businesses, providing not only a


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full range of financial services (credit, savings, payments and insurance) but also dedicated business
support services to accompany the enterprise in its development or possible expansion.

In this context, ESBG, as the European voice of savings and retail banking, fully supports and encourages
the increasing development of microcredit initiatives in Europe. In particular, ESBG stands ready to share
its members’ best practices and explore ways to collaborate with other microcredit providers, in order to
further increase the level of access to financial services, for all European citizens and entrepreneurs.
ESBG publication on Microcredit provides an overview of the current practice of microcredit within the
European savings banks sector. The case studies presented show these types of interventions and are
grouped in four main models: the microcredit subsidiary model, the balance sheet-based model, the
agency-based model, the off balance sheet-based model
5
.

Projects are developed on a local level, based on the banks’ close relationship with
stakeholders and beneficiaries and their thorough understanding of the local socio-economic
context. The multiplicity of these focused actions creates decisive input for local economic
and social dynamism.

Through the Lab, European savings banks wish to share with interested parties, stakeholders
and other businesses the key success factors and lessons they have learnt when getting
involved in local social projects, seeking to empower socially and financially excluded people.
They hope they could serve as guidelines for other European savings banks, intending to get
involved in social schemes or as references for those considering extending their existing
programmes. They could also inspire other businesses interested to join and enrich existing
schemes or to launch new ones, e.g. temporary employment agencies, insurance companies,
services companies (telephone, gas, water) etc, as well as stakeholders e.g. social proximity
networks, start up networks, local authorities etc.

2. Process and deliverable of the Lab

An analysis was made on the basis of national social inclusion schemes/experiences
developed or supported by European savings banks, at national or local level

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:
-
Parcours Confiance (« Fresh Start » programme), Groupe Caisse d’Epargne
(France)
.
Mid 2006, Groupe Caisse d’Epargne launched a prevention of banking exclusion
programme, Parcours Confiance. It temporarily supports individuals and professionals
who face social or financial difficulties and cannot find solutions in the
“conventional” banking system. It provides a two-year comprehensive support
package, including tailored banking services that are essential to maintain social
integration (account-keeping, means of payment) or to run microenterprises, and
microcredit facilities. In addition, it offers personalised social support through the
intervention of social workers and/or specialised voluntary organisations, and an
educational dimension through workshop on budget management and banking
products.





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4
6
See Annex 1 for an overview of each the schemes analysed.




More information from www.federation.caisse-epargne.fr/parcoursconfiance.htm

-
Die Zweite Sparkasse (“The Bank for the unbankable”), ERSTE Foundation
(Austria).
At the end of 2006, a new savings bank started to operate in Vienna with one
objective: to provide bank accounts to those people who are no longer banked,
because of economic and/or social difficulties such as unemployment,
overindebtness, homelessness etc. ERSTE Foundation initiated and financed this
project and works in close cooperation with counseling and charitable organisations,
primarily Caritas and debt counseling services, to identify eligible people. The service
provided is a basic account with a bank card, which does not offer overdraft facilities.
It also includes a basic insurance coverage. It is offered for three years with the hope
that after this period, clients can reintegrate the “conventional” banking system.
More information from: />
-
Support for employment of young people, BBK Gatze Lanbidean Foundation
(Spain).
The BBK Gatze Lanbidean Foundation programme aims at promoting the creation
of jobs amongst the young people in the region of Bizkaia. It offers support for the
self employed, through assistance to start up business projects, including the
financing aspects, until the consolidation of these projects. It also provides job
counseling services and facilitates access to first jobs, and extends its services to
recycling programmes for qualified and unqualified younsgters.
More information from:
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za=_cast&idVolver=1158929044991&tipoVolver=Page

-
BEM, financial services and communication centres for migrants, Caja

Castilla de la Mancha (Spain).
Caja Castilla de la Mancha is the main banking partner of BEM Centres. BEM
Centres offer one single space where tailored services for migrants are available, with
the objectives to promote the social and financial integration and development of new
residents, accompanying them and helping them in the process of adaptation and
personal growth. These include financial products (e.g. personal loans, giros and
transfers, debt consolidation etc) and communications services (facilities for long
distance calls or recharging mobile phones), as well as insurance or legal assistance
services.
More information from: and
/>

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-
Caixanova advice and reception programme for immigrants (Spain).
Caixanova programme seeks to help migrants in a social exclusion risk to cover their
basic physical, housing, education, psychological and social needs in order to increase
their autonomy and independence, allowing them to settle in a satisfactory way. It
offers support for temporary housing, labour inclusion -including through
microcredit- and cultural integration, as well as legal information and advice, language
classes etc.
More information from:
/>tro_de_iniciativas_sociales_caixanova

-
Ostpol-Credit scheme for microenterprise start-ups to revive the eastern inner

city of Offenbach, Savings Bank of Offenbach (Germany).
The Ostpol-Credit scheme supported by the Saving Bank of Offenbach targets
microenterprise start-ups, and also young graduates from the local University of Art
and Design. Beneficiaries from the scheme are based in a business start-up campus
located in the structurally weak eastern inner city area. The Ostpol loan is part of a
package of services, including training, business advice, offices, network and contacts
etc, provided through a local network of professionals. The involvement of the local
public authorities (City of Offenbach, regional young entrepreneurs and industry-
related associations, local Chamber of commerce and industry etc) reflects the
importance of the scheme to support the economic and urban development of the
city and of the region.
More information from: www.ostpolkredit.de

Two other initiatives were also part of the overview:
- The “4 Wände und mehr” (“4 walls and more”) project launched by the Austrian
Bausparkasse, which will support institutions working with homeless people or those
threatened by homelessness (www.sparkasse.at);
- the work currently being developed by Lloyds TSB in the UK with the Community
Finance Development Association, which seeks to identify a different model for
addressing financial inclusion.

Core principles shared by the different schemes which, in the savings banks’ experiences,
were key building stones to reach their objectives, were identified. They were discussed with a
group of stakeholders including mainly social NGOs – Caritas Europe, European Liaison
Committee for Social Housing-Cecodhas, European Consumer Debt Network, Secours Catholique - Réseau
mondial Caritas, Finances et Pédagogie, Réseau France Active as well as CSR Europe, and DG
Employment, Social Affairs and Equal Opportunities of the European Commission, and were
enriched based on their experience developed both at European level and at national level
7
.


A summary of the key success factors and lessons learnt is presented below.







6
7
See Annex 2 for the full list of stakeholders involved.




IV.
SUMMARY OF THE LAB FINDINGS

1. There is ground to develop specific support programmes for the population
at risk of social exclusion

A pragmatic approach to fight social exclusion leads to the recognition of the benefits of
schemes targeting groups specifically at risk. This should however not be read as a position of
principle in favour of differences of treatment for different types of clientele. It is important
not to fully detach services provided for groups “at risk” from regular clients, which could
increase further the feeling of exclusion. The overall objective of the involvement of savings
banks is to work towards inclusive financial sectors and to increase the level of banked people.

Through the development of specific support programmes, packages of adapted services and

support, in a variety of fields, are made available at a single “counter” enabling beneficiaries to
access comprehensive and tailored programmes, combining prevention, accompaniment and
follow-up. Besides, services are offered in a way which matches the specific needs of the
population targeted e.g. opening hours of centres for migrants, language skills of staff.

The dedicated schemes are used as much to prevent social and financial exclusion as to
support integration or re-integration into the social and economic life. Individual follow-up is
required, even though beneficiaries have left the support schemes.

The development of dedicated schemes is undoubtedly a way to bank people who otherwise
would remain, or turn, unbanked, with the mid-term objective to enable them to (re)integrate
the conventional banking system.

It is important to mention at this stage the communication aspect on the existence of such
dedicated schemes. It seems that for some of the targets, especially the migrants, the “word of
mouth” channel and the strong links between members of a given community are the most
efficient means to reach the potential beneficiaries. However, for a number of other groups,
and especially for the people suffering from social exclusion in a literal sense, and living in
isolation, information on these services must be made sufficiently and easily accessible.

2. The fight against social exclusion requires an integrated approach of
individuals’ situation

Social exclusion is directly related to banking exclusion. Citizens’ crisis situations are often not
caused by a single event or occurrence, but are the results and consequences of a series of
factors, all impacting on the social status of the individuals. Being banked is one pivotal part
of the recovery process, e.g. regular transfers to pay basic expenses such as rent, gas and
electricity bills or a bank account to which wages can be paid.

That is why initiatives of a social nature developed, or supported, by European savings banks

do not exclusively focus on the banking aspects. They often include a comprehensive set of
services: social/education/medical/employment/housing/insurance etc, but also cultural and
language support in the particular case of migrants. Banking services in this context are not a
stand-alone offer but part of a package of advice and mutually reinforcing support services.


7



Banking support is a key component of these comprehensive programmes of social
integration.

The overall objectives of the schemes are to enable beneficiaries to actively participate in
social and economic life and to reinforce their sense of responsibility, which includes helping
them managing their finances with confidence.

Parcours Confiance Platform of services


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3. A network of professional partners is needed to offer comprehensive
support

In order to propose an efficient package of quality services to beneficiaries, savings banks
involved in social schemes partner with public/private sector professional organisations,
experts in non-banking fields (insurance, employment, training, psychological, housing, debt
counseling service, welfare etc).


Private partners can be NGOs (Caritas in Austria), but also companies such as Adecco
France, the world leader in human resource solutions in the case of Parcours Confiance, or the
Vienna Insurance Group, an insurance company for Die Zweite Sparkasse, or business networks
(France active, Boutique de gestion in France), chambers of commerce in the case of BBK or
Sparkasse Offenbach. Social foundations are also key partners in Spain. Public stakeholders
can include municipalities or regions (Basque government for BBK, Offenbach City for
Ostpol-Kredit, Vienna municipality’s strong involvement in the case of Die Zweite Sparkasse), as
well as social services (e.g. Caisse d’Allocations familiales for Parcours Confiance) or universities (eg.
University of Art and Design, HfG in Germany).

Each of the partners is responsible in its own field of expertise, including banks.
Complementary expertise is needed to leverage synergies.
• Compulsory
workshops about :
relationship to
banks, dealing
with a budget…
Education
• Financial
advice and
coaching
• Preparing
loan
transactions
Finance
Diagnosis, individual programme of action
and follow up
Social
• Job search

• Housing
Local Caisse
• Psychological
Help
d’Epargne
branches
• Bank accounts
• Loans
Finances
et
Pédagogie
External
partners

• Means of
payment
• Cash withdrawals
• Transfers
• Savings accounts




In this context, the professional support provided by banks is restricted to the financial field,
be it banking facilities and products (microcredit, account facilities, loan, means of payment
etc) or financial advice/diagnosis/coaching. No business plan for microentrepreneurs for
example.

It is highly important to build bridges between partner organisations, for an efficient
coordination of the different dimensions of the schemes. Support measures and services must

be developed in permanent cooperation with the partners, and there should be an ongoing
counseling relationship between involved institutions on a given individual case.

Partnership network of the BBK Gatze Lanbidean Foundation programme



9

BASQUE GOVERNMENT
PROVINCIAL COUNCIL OF
• LANBIDE
BIZKAIA
• SPRI
• EMPLOYMENT AND
TRAINING DEPT


BBK
Gazte
Lanbidean
Fundazioa
• MENDIKOI
• DEMA
• DEPARTMENT OF LABOUR
• BEAZ
• DEPARTMENT OF EDUCATION
NON PROFIT ENTITIES
TOWN HALLS
• CARITAS

• BEHARGINTZA PROJECT
• PEÑASCAL FOUNDATION
• ADSIS
• SARTU
BUSINESS
ORGANISATIONS
UNIVERSITIES
• CEBEK
• BASK COUNTRY UNIVERSITY
• ASLE
• CHAMBER OF COMMERCE
• DEUSTO UNIVERSITY
• PROFESSIONAL TRAINING CENTRES



Ostpol – Credit Sparkasse Offenbach Operators


4. An important part of the schemes has to be devoted to the prevention of
social exclusion

The overall objective of the programmes aimed at fighting social and financial exclusion
include an important focus on the provision of basic social support for people in precarious
situations, e.g. language skills for migrants, education on general money matters, support to
job seeking, debt mediation etc, in order to encourage self-reliance and prevent any
deterioration of their condition.

Interventions are planned at the earliest possible stage of a potentially worsening situation and
the “detection” of individuals at risk is a joint responsibility of all participating partners, who

channel difficult cases to appropriate support schemes.

One of the essential axes of the prevention of banking and social exclusion is the provision of
financial literacy skills. It should not only reach beneficiaries once enrolled in the dedicated
schemes, but beyond, networks and organizations involved in the provision of social support
at large. Financial education must be part of the core elements taken into consideration to
reach full social inclusion.

European savings banks’ commitment to Financial education
Financial education is a key field of ESBG members’ contribution to society and interaction with
stakeholders. They play a key role in educating people on finance and budget issues, far beyond the
scope of their clientele. They are motivated by the strong belief that these initiatives contribute to
preventing social and economic exclusion and that citizens with a better knowledge of financial issues
are able to make informed choices, for products and services best tailored to their needs.
Initiatives taken by ESBG member banks to improve financial literacy focus on all kind of public
(households/families, employees, children, older people, low-income part of the population, socially
excluded, etc) and cover all types of issues (budget planning, personal finance management, use of


10



payment instruments, borrowing, savings, investment and pensions, etc). An overview of programmes
developed is available in ESBG brochure on financial education initiatives by members.
8


5. The provision of support to (re)integrate the social and economic life is
temporary


The schemes launched are usually not intended as permanent solutions, but as means and
tools to get individuals out of a deteriorating situation. Interventions are therefore planned at
the earliest possible stage, in a prevention mode.

The overall aim is to foster beneficiaries’ autonomy and independence, rather than providing
long-term assistance. The temporary support is used as a basis to adjust to the environment of
a new country, to start a working life and/or to (re)integrate into the “conventional” banking
sector once back to a healthy banking and social situation.

Experience has shown that a problematic financial situation can be remedied within a given
period of time (3 years for Die Zweite Sparkasse, 2 years for Parcours Confiance), and that some
mild pressure to do so is a useful help.

6. The development of projects on a local scale is a key element to deepen the
proximity relationship

Experiences demonstrate the efficiency of decentralised implementation/management of
initiatives at local level, as part of global and coherent social inclusion policy programmes. The
proximity relationship and local connection are essential to bring the kind of support adapted
to the needs of the local population. It also facilitates trust, both with targets and partners.

Local social players are involved, and the work develops through a proximity network of
professionals, who have an in-depth knowledge of the local markets, their challenges and
opportunities, facilitating the definition of workable and sustainable solutions.

Besides, these local networks can have positive effects on the local economic development
and social cohesion, including the employment and job creation policy. It also creates
opportunities to develop cooperation with and benefit from support of public local
authorities. The launch of the Ostpol-Kredit scheme in Germany for example is part of the

economic and urban development strategy of Offenbach. One of the prerequisites to benefit
from the scheme is that the microentrepreneurs are located in a new urban infrastructure, the
Ostpol business start up campus, whose purpose is to attract microentrepreneurs and support
the launch of their business, with the ambition to economically revive the eastern inner city of
Offenbach, a structurally weak part of the region.






8
/>

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The fact that people in need can also be reached by savings banks even in the most remote
areas –through Caja Castilla de la Mancha’s mobile bank branches for example in Spain – is
also a very important point in the context of financial exclusion.

The branches network of Caja Castilla La Mancha


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For the BEM programme, 23 multiservices branches in different towns of Castilla la

Mancha, Madrid, Valencia and Barcelona.

CCM HAS
245
SERVICE
WINDOW
S
NUMBER OF BRANCHES IN 2007
RURAL AREAS
(TOWNS AND
URBAN AREAS
(TOWNS WITH
248 278
TWO MOBILE BRANCHES
TO COVER THE
FINANCIAL NEEDS
OF VERY SMALL
RURAL AREAS




The local deployment of Die Zweite Sparkasse



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Branches in Austria:
• Vienna (since 11/2006)

• Innsbruck (since 9/2007)
• Salzburg (since 11/2007)
• Klagenfurt (since 2/2008)
• Graz (since 5/2008)


Infrastructure is provided by
Erste Bank, Tiroler Sparkasse, Salzburger Sparkasse, Kärntner
Sparkasse, Steiermärkische Sparkasse


7. The definition of categories of beneficiaries is requested to provide targeted
support

The social schemes developed by savings banks target individuals whose situation cannot be
handled at commercial, branch level: low income people unable to access conventional credit
and in precarious situations, persons in financial difficulty or at risk of sinking into debt,
microentrepreneurs unable to access conventional credit and assisted by a mentoring
network/an organisation specialised in small business creation etc.

In this regard, partnerships with public/private authorities are required to identify groups in
specific needs and define adequate and tailored solutions. It also leads to a better and more
precise analysis of the causes of exclusion and the development of appropriate prevention
policy responses.

Social support/microentrepreneur networks therefore play a key role in the identification of
potential beneficiaries. A recommendation from one of the participating, social organisations
can be a prerequisite to access the support scheme. Mutual prescription of partners to
orientate beneficiaries to relevant schemes or to some of the services they offer, is also
organized, e.g. Adecco/Groupe Caisse d’Epargne, Caritas/Die Zweite Sparkasse, University

of Art and Design/Sparkasse Offenbach.

Participation to the schemes can be offered to clients and non-clients. But it is still difficult to
approach the existing clientele (clients at risk). It is difficult to know where to set the
borders/which criteria to apply.

The number of beneficiaries is usually limited since individualised support provided is time-
consuming and requires heavy resources.




Network of counselling organisations, chanelling beneficiaries to Die Zweite
Sparkasse
Die Zweite Sparkasse initially cooperated with Caritas and the debt counselling

services for the
identification of people eligible and in need of the support provided by the savings banks. Since
October 2007, it has extended its collaboration with four new counselling organisations in Vienna,
both from the public and private sectors:
- the Vienna municipal authority “Magistratsabteilung 40” (Social Affairs, Social and Health Law),
providing assistance to Viennese residents in distress;
- “Verein Dialog”, which offers support to drug addicts and their relatives;
- “NEUSTART”, an initiative aimed at delinquents;
- the “Wiener Hilfswerk”, which provides comprehensive counselling services to people in difficult
life situations.
These organisations will select amongst their clients those without access to banking services and
continue to support them once they have become customers of the Sparkasse.

8. Tailored services and products need to be proposed to beneficiaries


Personalised and tailored services are defined to meet the needs of each individual/beneficiary
(employment, housing, training, psychological help, budget supervision etc). The full package
of services can be proposed, or only a part of it.

In order to better guide beneficiaries and provide them with long-term skills, education and
counseling can complement the delivery of basic banking services and products (Parcours
Confiance, Die Zweite Sparkasse).

Examples of financial and banking services and products offered:
- Parcours Confiance provides the tools enabling economically disadvantaged individuals and
entrepreneurs to become self-sufficient. These tools include:
9 affordable banking services (loans, means of payments, saving accounts…)
9 financial education and coaching that enable individuals to use credit and means of
payments.
9 social services (housing, job search…) in partnership with charitable organisations.
Specific needs and services for microentrepreneurs, in partnership with mentoring
networks which provide small business support services (start-ups financing: access to
conventional loans -1 000 to 90 000 €-, professional account services).
Banking services essential to maintaining social integration: account keeping, means of
payment, on preferential terms + help in building precautionary savings + individualised
banking accompaniment + loans at specific conditions (from 300 to 12 000 €, 3% rate).

- Die Zweite Sparkasse:
9 Account solutions
¾ interest-bearing current account: basic account with a bank card (Erste Bank
ATMs), with no overdraft facility. For these accounts, the customer pays a


14




deposit of EUR 9 per quarter, which will be fully refunded if the account rules
are complied with
¾ investment account bearing higher interest rates
¾ building loan contract free of charge (s-Bausparvertrag)
9 Legal advice service, available once per quarter, providing consultation on issues
related to Austrian or European law, EEA law or Swiss law – for private or
professional purposes
9 Insurance
¾ accident insurance providing 24-hour cover of up to EUR 50,000,- in the
event of disablement and paying a benefit of EUR 5,000,- to dependants in the
event of accidental death of the insured person
¾ homeowner’s insurance with private liability coverage at an affordable
premium (EUR 3 per month), and also includes a private liability coverage.

- BBK support to young people entrepreneurship projects : start-ups financing loans of up to 30 000
€, subsidised interest rate (Euribor + 0,50), grace period depending on cash flow. The
principle is that no worthwhile project should be denied financing because of a lack of
collateral.

- BEM, financial services and communication centres for migrants: multiservices branches with a
range of adapted retail financial services, e.g; personal loans, remittances, debt
consolidation, credit cards, mortgages.


15
9 Loan Allocation Committee which
9 of a limited amount, from 1000 EUR, in order to build up the business

9 me of the micro-loan determined by doubling the sum of the guarantees put
9 maximum duration: 36 months
them for free,
r beneficiaries’ education purposes and as a first step towards responsibility.

- O lstpo -Credit scheme for microenterprise start-ups:
presentation of the business concept to the
immediately takes a decision on commitment
first loan
gradually
volu
up
9 interest rate nom. 10% p.a.

Products and services have a moderate cost, since it is important not to offer
fo













An extensive range of services offered through Caixanova programme



9. Businesses have to dedicate specific resources and means
of handling difficult personal situations and benefit from specific regular training
ssions).
LABOUR INCLUSION
rative requirements and legal
sential rules
me in
Leaving the centre and coming after
INFORMATION AND ADVICE
and protection
Documents
• Information
• Legal advise
•
• Guidelines to find a job
• Administ
advice


16

The development of social inclusion schemes requires a strong mobilisation of banks staff,
since they are operated by dedicated teams of bankers (Parcours Confiance) or a specific
structure for example run by volunteer employees and pensioners. Die Zweite Sparkasse is
entirely managed and operated by employees and pensioners of Erste Bank and the savings
banks in the provinces, on an honorary basis. Staff with specific skills and background is
devoted to the initiatives (e.g. BEM staff of foreign origin, Parcours Confiance bankers have
experience

se

Die Zweite Sparkasse, a volunteer-run institution
The uniqueness of Die Zweite Sparkasse lies particularly in the fact that it is exclusively managed and
operated by volunteers. From the managing board to the bank clerks and assistants, everybody who works
at Die Zweite Sparkasse for people in need of a helping hand does it on a voluntary basis.
More than 200 of the current and retired staff of Erste Bank have volunteered to contribute their services
without receiving payment. Many of the staff of the savings banks in Tyrol and Salzburg have also got
involved.
The volunteer-based nature of the bank is another example of Die Zweite Sparkasse returning to its roots,
while sending a clear motivating message that our society can show solidarity, even in a modern return-
oriented context.
• Training on es
SOCIAL SENSIBILITY
• Living with the difference
• Microcredits
• Grants for the first job (program

conferences, movies,
theatre…
• Understanding the other
• Promotion of a volunteers group
• Meetings,
collaboration with companies)
•
TEMPORARY HOUSING
our (respect for
Children’s care
• Between 3 and 6 months
EDUCATION

Labour integration (learning a job)
• Alone or with their relatives
• Living together behavi
• Language
• Social skills
•
the plurality)
•




A dedicated Parcours Confiance structure

In order to provide the support package, each local Caisse d’Epargne sets up a dedicated Parcours Confiance
structure, which is invited to partner with local social workers and socially-oriented organisations in order
to benefit from their expertise (employment, housing, psychological help etc).
Finances et Pédagogie, a financial education body created and supported by Groupe Caisse d’Epargne, is in
charge of the education dimension, while a dedicated Caisse d’Epargne account manager is responsible for
the financial diagnosis and overall supervision of a small number of people on the programme. He/She
analyses each situation, holds diagnostic interviews, makes a recommendation and participates in banking
decisions. He/She also supervises the beneficiary daily situation until his/her situation has stabilised.

Time needs to be spent on individualised service and coaching, in order to forge deep
relationships with beneficiaries. It is therefore a long-term investment for banks, without
expected immediate return.

The savings banks’ model which exists in a number of countries, such as in Spain, are well
suited to develop such social inclusion schemes, in compliance with their charter according to
which parts of the profits are allocated to social activities and community projects.


The Spanish savings banks’ model to the service of

Obra Social


In Spain, the savings banks’ model enables them to allocate to community projects the remaining parts of
their profits not allocated to reserves, after having paid the corresponding taxes. This return to society
distribution amounted to 23,5% in 2007 and is know as Obra Social, whose allocation, distribution, policy
and administration are decided independently by each savings bank.
In 2007, Obra Social covered social and health assistance projects for 32%, the rest being dedicated to
culture and leisure (41%), Research and education (17%) and Historical and natural heritage (10%). In
2005 a study made by external consultants evaluated the impact of Savings banks’ social action in Spain
and showed how 96% of the Spanish population was covered by savings banks´ Obra Social. This Obra
Social scheme represents an active cohesion element for the population since less inhabited areas, elderly
population and low income social groups are the primary beneficiaries.

10. The evaluation of the impact of the schemes requires both qualitative and
quantitative indicators

Although most of the support programmes analysed are still at an early stage of their
development, it would be useful to already set up indicators to evaluate their impact and
benefits, both in terms of numbers:
- Number of beneficiaries and evolution over the years
- Types of services provided
- Length of presence of beneficiaries within the schemes
etc

and in terms of quality of the support provided:
- Follow-up of beneficiaries

- Viability of micro-entreprises supported
- Scheme beneficiaries entered as “conventional” clients in a bank


17





18
tc E

Parcours Confiance Success stories

9 Young man, unemployed, finds a job thanks to Parcours Confiance. He could buy a
motorbike to go to work with a small loan from Caisse d’Epargne.

9 Middle-aged, divorced mother, with no allowance from her former husband, gets a
driving license thanks to a Caisse d’Epargne loan via Parcours Confiance.

9 Unemployed young woman creates her own business thanks to Parcours Confiance’s
technical assistance and 40 000 € loan from Caisse d’Epargne.

























ANNEX 1

PRESENTATION OF SCHEMES USED BY A BASIS FOR THE ANALYSIS
PARCOURS CONFIANCE
A path towards autonomy !
2008
2
ABI Slide Show - 29.01.08
Groupe Caisse d’Epargne
 A full-service multi-brand and multi-business Group
 The third largest retail banking network in France
 Over 4,700 branches serving 26 million customers
3

ABI Slide Show - 29.01.08
Historic social involvement
1818 First Saving Bank is funded to provide people with the means to
use their money wisely along with the benefits of saving in a period
marked by tough economic and social conditions.
1895 The law dated 20th July sets up a Reserve Fund within each
Savings Bank allowing them to fulfil their principal interest duties of
providing finance for inexpensive housing, allotment gardens and
public baths.
1999 A law is introduced that confirms the economic and social utility
of the Savings Banks, and specifies that a portion of profits must be
allocated to financing Local and Social Economy Projects.
4
ABI Slide Show - 29.01.08
Local and Social Economy Projects
 Lfor Local
LSEP are local initiatives, located in
the territory of French Savings Banks
 Sfor Social
LSEP target people seeking to
become self-reliant
 Efor Economy
The supported projects must
generate economic activity
 Pfor Project
Financed initiatives are intended to
help strengthen social cohesion
14 000
projects financed
since 2001

55million
euros earmarked
in 2007
130collaborators
on public interest
activities
5
ABI Slide Show - 29.01.08
A new stake : financial exclusion
“over 5 million individuals are faced with financial
exclusion in France today. These people face
difficulties such as banking services and banking
products which means that they can not lead a
normal social life”.
Georges Gloukoviezoff – LEFI – Lyon 2
In 2005, the French minister Jean-Louis
Borloo created a State financed fund to the
tune of the sum of €73 million over 5 years to
secure loans to entrepreneurs and individuals
excluded from bank credit.
6
ABI Slide Show - 29.01.08
An answer : Parcours Confiance
 A network of non-profit making
organisations
 funded by Group Caisse d’Epargne
 to prevent financial exclusion
 providing individuals with :
 loans and financial services
 financial education

 social coaching
 A path towards autonomy !
Parcours Confiance ("Fresh Start" programme), Groupe Caisse d'Epargne (France)
7
ABI Slide Show - 29.01.08
Targeted people
Who…
1. Are unable to access or use banking services
2. Have a personal project
3. Need coaching for a short-term period
Low income
individuals
People facing
unfortunate events
Small-scale
entrepreneurs
8
ABI Slide Show - 29.01.08
A range of needs
Vocational training
Clothing
Work
Funeral expenses
Health costs
Other
Household appliances
Disability equipment
Equipment
Estate agency fees
Rental bonds

Housing
Licence
Vehicle
Mobility
9
ABI Slide Show - 29.01.08
External
partnerships
A platform of services
• Compulsory
workshops about :
relationship to
banks, dealing
with a budget…
Education
Finances
& Pedagogie
Diagnosis, individual programme of
action and follow up
• Financial advice
and coaching
• Preparing loan
transactions
• following up
bank accounts
Finance
• Bank accounts
•Loans
• Means of payment
• Cash withdrawals

• Transfers
• Savings accounts
Local Caisse
d’Epargne branches
•Job search
•Housing
• Psychological
Help
Social
10
ABI Slide Show - 29.01.08
Customised services for individuals
 Dedicated retail bankers
 Affordable banking services
 Microcrédit € 300 to 12 000 at 3% rate
 Training sessions with NGO « Finances & Pédagogie »
 Cross services with social workers
 Housing
 Job search
 Psychological help
 …
A two year support program to gain financial autonomy !
11
ABI Slide Show - 29.01.08
Customised services for entrepreneurs
 Dedicated bank specialists for micro-entrepreneurs
 Affordable banking services
 Access to conventional loans € 1 000 to 90 000
 Assistance from a mentoring network such as :
 France Active

 Les Boutiques de gestion
 France Initiative
 …
 Mentoring before starting and during development
A three year support program to recover professional
autonomy !
12
ABI Slide Show - 29.01.08
A system of co-guarantees
Regional Savings Banks
Parcours
Confiance
BorrowersPartners
State’s funding
Subsidies
Credits
Subsidies
Guarantee
Guarantee
Subsidies
Guarantee
13
ABI Slide Show - 29.01.08
Implementation in progress
Target for 2009
1. 10 000 microcredits
2. 70 collaborators
3. Branches on all the French territory
14
ABI Slide Show - 29.01.08

Success stories
Unemployed young woman creates her own business
thanks to Parcours Confiance’s technical assistance
and 40 000 € loan from Caisse d’Epargne.
Young man, unemployed, finds a job thanks to
Parcours Confiance. He could buy a motorbike to go to
work with a small loan from Caisse d’Epargne.
Middle-aged, divorced mother, with no allowance from
her former husband, gets a driving license thanks to a
Caisse d’Epargne loan via Parcours Confiance.
15
ABI Slide Show - 29.01.08
Contacts
FEDERATION NATIONALE DES CAISSES D
FEDERATION NATIONALE DES CAISSES D
’
’
EPARGNE
EPARGNE
René DIDI
Chief Executive

Tel: + 33 (0)1 44 38 50 11
www.parcours
www.parcours
-
-
confiance.fr
confiance.fr
CAISSE NATIONALE DES CAISSES D

CAISSE NATIONALE DES CAISSES D
’
’
EPARGNE
EPARGNE
Pierre DUTRIEU
Chief Executive

Tel: +33 1 58 40 41 33
www.parcours
www.parcours
-
-
confiance.fr
confiance.fr
www.erstestiftung.org 1
Seite: 1 Seite: 2
“No Progress Without Provenance”
(“Keine Zukunft ohne Herkunft”)
Odo Marquad
Seite: 3
ERSTE Foundation
• direct legal successor of Erste Oesterreichische Spar-
Casse founded in 1819
• established as a savings-bank foundation in 2003
• major shareholder of Erste Bank Group: the largest
foundation indigenous in the South Eastern / Central
European region
Seite: 4
ERSTE Foundation – Core Shareholder of Erste Bank

Private
investors
7 %
savings banks
7%
31%
employees
3%
other institutional
investors
42%
Austria Verein
5%
Capital Research
& Management
5%
Seite: 5
ERSTE Foundation
• as a charitable / non-profit organisation active in
Central and South Eastern Europe since 2005
• developing projects independently and in collaboration
with partners within the three programmes:
• Social Affairs
• Culture
• Europe
Seite: 6
Programme „Social Affairs“
Social Integration –
Developing ideas and concepts for social participation
projects:

• Die Zweite Sparkasse
• ERSTE Foundation Award for Social Integration…
Social Transformation –
Analysing and shaping social change processes
projects:
• European Fund for the Balkans
• Long-Term Care in Central and South Eastern Europe…
Die Zweite Sparkasse ("The Bank for the unbankable", Erste Bank Foundiation (Austria)
www.erstestiftung.org 2
Seite: 7
Programme „Culture“
PATTERNS –
Researching and understanding recent cultural history
Projects:
• Monument to Transformation
• travelling lectures in CEE…
LINKS –
Promoting and communicating contemporary culture
Projects:
• Igor Zabel Award
• Paul Celan Fellowship for Translators…
Seite: 8
Programme „Europe“
Encounters – Enabling dialogue and mobility in Europe
Projects:
• ACES – Academy of Central European Schools
• Balkan Fellowship for Journalistic Excellence
• Balkan Case Challenge…
Enlarging Knowledge – Documenting and passing on
European enlargement knowledge

Projects:
• New Economic Geography (with ESI)
• Balkan Journey (10 TV documentaries with ORF, 3sat, ESI)
• Reclaiming Democracy (book and lectures)…
Seite: 9
our responsibility
Due to its position as the major share holder of one of
the largest companies in Central and South-Eastern
Europe, ERSTE Foundation is committed to social and
cultural responsibility in this region:
• This commitment is based on its historical roots.
• As successor to the savings association bank “Erste
Oesterreichische Spar-Casse“, ERSTE Foundation draws
its mandate from the tradition of the savings banks,
which were founded more than 180 years ago to serve
the common good.
Seite: 10
Seite: 11
Early 19th century – „good old days?“
Napoleonic wars
Begin of industrialisation
Austrian Government bankruptcy 1811
Harvest failures
No chance of banking for “normal” citizens, craftsmen,
peasants
Rather hoarding than saving
Savings and loans associations in England
-> “set up Savings Banks!”
(Emperor Franz I)
Not a Really New Idea…

Seite: 12
Following the founding idea of the Erste
Following the founding idea of the Erste
oesterreichischen
oesterreichischen
Spar
Spar
-
-
Kasse
Kasse
, ERSTE
, ERSTE
Foundation
Foundation
–
–
for the first time in 120 years
for the first time in 120 years
–
–
initiated the founding of a new
initiated the founding of a new
Vereins
Vereins
-
-
Sparcasse
Sparcasse
(savings association bank)

(savings association bank)
…
…
to provide people in difficult life situations
to provide people in difficult life situations
with a basis to re
with a basis to re
-
-
start their lives and to
start their lives and to
contribute to the overall stabilisation of
contribute to the overall stabilisation of
society.
society.