Commitment to End Capital Starvation Promote access to and use of banking and financial services by all through new technologies and distribution channels to capitalize assets among the poor.

Commitment to Universalize Income, Savings, Credit and Finance
Provide basic income via ATM cards and mobile banking to reach the poor and open new channels of access to income, savings, credit, finance, insurance and opportunities.

Prudent Banking and Regulatory Compliance

Alternative banking seeks to work within regulations, guidelines and best practices recommended by domestic monetary authorities and international regulatory institutions such as the Bank for International Settlement Basel III Capital Risk Guidelines.

Corporate Social Responsibility Leadership

Integrate corporate social responsibility into down-market business strategies and institutions of representation and democratization.

Transparency and Accountability Publish annual reports and balance sheets in accord with international best practices of financial, social and sustainability reporting.

Leadership in Provision of New Banking

Services and Products to the Poor Use competitive advantages in banking and institutional networks to channel more effectively capital, income and finance to the poor.

Generate Sustainable Income and Household Asset Accumulation
Use branch offices and new banking technologies to accelerate progress toward UN millennium goals to eliminate poverty.

Promote financial education to encourage responsible banking and finance and avert predatory lending and unethical practices. Adopt Cutting Edge Technology and Management Practices to Provide Competitive Alternative to Private Commercial and Investment Banks Incorporate electronic card and mobile banking services to better serve the poor.

Contribute to Realization of Bellagio Principles for Sustainability

Promote alternative banking and business practices that contribute to environmentally sustainable income, consumption and production as stated in Bellagio Principles for Sustainability.

Respect and Build on National and Regional Differences

Instead of a single model, alternative banking institutions and international agents may best accelerate social inclusion by respecting different contexts, averting single models and working with existing social and political forces to innovate.

Finance thus increases inequality in a setting of high inequality and high financial returns. Indeed, given the inability of many citizens to save, and the reality that roughly 55 percent of Brazilians remain without bank accounts, this exercise underestimates the impact of finance on inequality. Given the notorious starting point of Gini Coefficients for Brazil in 1990 (0.60; one of the world´s worst), the gaping differences in the value of personal assets over time increase substantially. The geometric character of financial returns over time increases inequality.

A second example suggests that private bank-based strategies are not sufficient to counter legacies of underdevelopment and exclusion. The following figure extrapolates the pace of bank inclusion achieved during 2000-10 for the decades 2010-30 with four hypothetical supply curve scenarios. At the current pace of inclusion according to a private bank supply curve, one can expect 50 percent or 150 million of 300 million Brazilians to have bank accounts by 2030. A second lower supply curve of savings banks that specialize in “no-cost no-questions-asked” accounts indicates that one can expect roughly 66 percent or 200 of 300 million Brazilians to have bank accounts by 2030. A more expensive upmarket supply curve of private banks implies that five percent or 60 million Brazilians would be included by 2030. Finally, a fourth scenario of identity

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