Regional development of Basic Infrastructure Activities (BIAs), which operate as to public licenses, is also much needed by SMEs.
BIAs should be influenced by citizens / users / participants. However, BIAs are often organizations with a narrow corporate culture, i.e. controlled by somebody with a "power of office", which can open up to possible abuse. Cf. the Latin word: "Imperium".
Remedies to avoid negative impacts of a narrow corporate culture are:
Economic co-responsibility/accountability and empowerment resulting in shared interests - as well as a parallel practice of offering a value proposition to the atomist (read: the individual without influence alone). Thereby an organization can express its purpose (French: Raison d'Être).
Let us apply a common term for supplementing alternatives to “Banking Monsters” (read: Multi-Role Financial Groups); namely “Community Banking”. Massive stimulus directed to the large banks (“too big to fail”) have not been as productive as the “stealth”, continuous efforts for a. o. job creation of "Community Banking" – without any State support and stimulus.
According to FT.com - US “Community Banking” with less than 1 billion USD in Assets account for > 10% of the financial industry’s total assets, but provides 40% of the financial industry’s capital to small businesses.
US Federal Deposit Insurance Corporation has announced a new Initiative to support America's “Community Banking", including a project to gather more knowledge about this understudied sector. FDIC has observed that "Community Banks" are central to USA's job creation.
Therefore FT.com asserts: "The idea of being Small / Local / Specialist / Boutique is no longer taboo. Community Banks fit the times. They are the banks that politicians can be seen to embrace".
In South America, Europe, the Mid-East, Africa and in Asia the financial structures have different standards, reach and qualities – reflecting their nations’ diversity of industries and cultures – as well as their different exposure to Influences from other parts of the World.
According to FT.com - representatives of US Authorities do acknowledge lack of information about today’s "Community Banking", which contribute more than others to the real economy. This is also true in other Parts of the World.
A sub group of “Community Banking” are “Utility Banks”, like mutual saving & loans, credit unions and building societies based respectively on deposits and bond issues – to lend against collateral. Needless to say - they deal primarily with CREDIT-/ DEBT INSTRUMENTS.
Another sub group are Single-Role Investment-/Merchant Services and Social Enterprise for Impact Investing - configured as Collaborative Value Networks (CVNs). It can deal with micro financing of enterprise and viable innovation in Small and Mid-sized Enterprises (SMEs) based on competencies in the fields of equity-capital finance, ownership and owner-governance.
The CVN-approach can reach into the real economies of maritime regions by means of Regional Network Partners (RNPs) exercising the role of trustee/fiduciaries in peer-to-peer relations with owners/enterprisers and investors of Small and Mid-sized Enterprises (SMEs), hereunder family-owned firms, as well as directors of regional basic infrastructure activities. Most SMEs and regional basic infrastructure are not "Names" in media and financial markets. Therefore they may be underserved by transaction-fee driven, central financial players.
SMEs stand for more than 80% of BNP in developed nations and an even larger share of Job creation. Such initiatives can reposition Investment-/Merchant Services and position CVN-Approach to assemble liable capital from many. Thereby capacities can be built by spreading risk – to facilitate access to needed intermediate financing - and get in place needed EQUITY CAPITAL.
As already mentioned above - there is also a need of affordable access to confidants and trustees / fiduciaries, like those of Bankier.co, who act as a "Wedge" - always at arm's length to insurers, brokers, banks and fund managers. Thereby Bankier.co can contribute to financial reform; namely:
1. A financial structure also for the SMEs of the real economy, hereunder family-owned firms;
2. Separation of the roles to achieve impartiality;
3. Financial innovation; i. e. with social impact.
Please also look to the last page of this website. It refers to an article in the Economist on October 22nd 2016, which sheds light on the stealth growth of Private Equity Funds (P-E funds) and the growing riches of their managers. The vitality of the Private Equity has seen it replace investment banking as the most sought after job in finance, according to the Economist.
The page asks the reader to take a stance on the P-E funds - please evaluate the Creditas-Initiative as an alternative. It is a Social Enterprise for Impact Investing - organized as a Collaborative Value Network (CVN) - co-operated and co-owned by self-directed capital partners. They have a right but not an obligation to become Members of a Protection Club. Each member has an individual master account. Members can assemble, spread risk and build capacities to facilitate effectively a. o. pro-active restructuring - and they avoid extreme management fees.