Stream 13
Opportunities and challenges for financial cooperatives
Stream leads: Inmaculada Buendia-Martinez (University of Castilla-La Mancha and IICADD), Thuy Seran (University of Montpellier)
Stream Committee: José Luis Blanco (Specialized Consultant in Strategic Planning for Cooperative Financial Institutions, Peru), Inmaculada Buendia-Martinez (University of Castilla-La Mancha and IICADD), Myriam Demers (Senior Director of Culture and Cooperation, Desjardins Group, Canada), Thuy Sera (University of Montpellier)
Description:
Financial cooperatives occupy an important place in the world banking landscape. The first financial crisis of this century highlighted the strength of the cooperative sector not only for its contribution to financial stability, but also for its importance in the economic development of the territories in which it operates. Despite this, financial cooperatives have been affected by the important transformations of the banking sector in the institutional, legal and political spheres with a new financial ecosystem characterized by increasing complexity and competition, a high concentration of large financial players and an inevitable digital transition with the emergence of new companies.
In addition to facing these regulatory and market dynamics, cooperatives have their own challenges derived from the specificity of their model: generational replacement, regulation, relationship with members, legal framework, compliance, governance and transparency, centralization and organizational integration, contribution to sustainability, cooperative integration and public recognition of the cooperative contribution and culture to society. Facing these internal and external challenges requires different strategies depending on the level of economic development of each nation.
Taking into consideration the above, this research stream calls researchers, experts, professionals and public managers to send their communication proposals to advance in the knowledge of financial cooperatives in order to face the challenges of the coming years in the different regions of the world. Although the research stream is open to submit contributions on any issue related to financial cooperatives, the following topics are presented as a reference on which we invite contributions:
The crisis of 2007 highlighted the strength of the cooperative financial sector, but how resilient are financial cooperatives, and what are the key drivers of their resilience?
In the face of the digital revolution, cooperative banks are turning to partnerships with financial technology companies to accelerate the digitization of their services. How are these partnerships transforming the traditional cooperative model?
Prudential regulations, introduced after the 2008 financial crisis, have profoundly changed the way financial cooperatives are managed. How are they adapting to these new requirements in terms of governance, capital, risk management and transparency?
Managing complex member relationships and collective decision-making within financial cooperatives brings significant challenges. What new governance models are needed to maintain the balance between internal democracy and organizational efficiency? What influence do members have in financial cooperatives? The governance of financial institutions is highly standardized and regulated, so how much influence do members have in this context?
In an increasingly complex and competitive market, it is necessary to differentiate oneself from the competition in a context where members act primarily as individual consumers. How do members perceive the added value provided by the financial cooperative? How do they perceive their responsibilities as members of a financial cooperative?
In this competitive environment, how do cooperative banks adapt to new market demands without losing their identity based on mutualist values? What is the impact of mergers, acquisitions and hybridization on their business model?
What is the state of regulation and supervision in the different regions of the world? How adapted is it or how well does it recognize the distinct nature of the sector?
What is the ecosystem necessary to achieve the development of financial cooperatives in different institutional frameworks? What is the role of education in cooperative regeneration, attracting professionals and the recognition of its economic and social contribution by the society? What is the role of financial cooperatives in economic development and wealth distribution?
References:
Literature on this topic can be found at PortailCoop: https://portailcoop.hec.ca