Banks are crucial allies for the social business, with a push towards blended finance solutions.
In a significant call to action, Giusi Biaggi, the president of the Consorzio Cgm, has emphasized the need for banks to broaden their perspective of the third sector, moving beyond traditional balance sheet criteria. This call comes as the social economy sector continues to evolve significantly, driven by the reform of the Third Sector and its increasing role in addressing growing social demands.
The social economy sector, which employs 471,199 people, more than half of all workers in the sector, is undergoing a transformation. According to recent findings from the Observatory, trends in hybrid finance tools for social enterprises and social cooperatives are focusing on integrating innovation, training, and strategic impact finance use to enhance their effectiveness and sustainability.
Hybrid Finance Solutions
The evolving landscape of hybrid finance solutions involves combining traditional financing with impact investment and fintech innovations. These innovations include AI-driven personalization and decentralized finance platforms, aiming to optimize capital access and financial service delivery tailored to social enterprises' needs.
Training and Capacity Building
There is an increasing emphasis on developing skills relevant to managing hybrid finance, including financial analytics, impact measurement, and storytelling to attract investors. Events like the Impact Minds 2025 conference, focused on impact storytelling and networking for social entrepreneurs and impact investors, demonstrate this trend.
Innovation in Impact Finance
Social enterprises are leveraging new financial models such as blended finance and multi-cloud digital platforms, enhancing transparency, scalability, and engagement with diverse capital providers who prioritize environmental, social, and governance (ESG) criteria.
Use of Impact Finance Tools
Tools that support inclusive finance and address systemic challenges like poverty, climate change, and social inequality are increasingly being integrated into hybrid finance models. Organizations like CGAP emphasize tailoring financial services to vulnerable populations, reflecting a push toward more impact-driven finance innovations.
Challenges
Despite these advancements, challenges remain. Complexity in implementing hybrid models, capacity gaps, regulatory and market uncertainty, and talent acquisition and retention are all issues that need to be addressed. Events and networks like Impact Minds and Social Enterprise Summit provide crucial platforms for learning, innovation sharing, and collaboration to address these challenges effectively.
The call for banks' support and training comes from the XII Edition of the Observatory on Finance and Third Sector. Social enterprises and cooperatives prioritize training from banks, particularly in new organizational models, measurement of social impact, financial education, and fundraising.
However, third-sector investments are underdimensioned and in a contraction phase, partly due to the macroeconomic scenario, according to Andrea Lecce, Executive Director of Impact Bank of Intesa Sanpaolo. Banks are being called upon to provide support and training for businesses and social cooperatives, not just in the form of credit but also in training and innovation.
The use of resources from private investors and public institutions is increasing, while bank credit and self-financing are decreasing. Enterprises want banks to not only act as investor partners (63%) but also stimulate and accompany the generation of impact and innovation (43%). Banks are expected to play a more active role beyond just providing economic resources, with a focus on dedicated and trained personnel.
The survey shows a growing awareness but decreasing use of impact finance tools such as favorable loans, social and social bonds, and social venture capital from 2020 to 2022. There is a strong need to develop hybrid finance tools that can combine different components such as equity, grants, and debt.
Social enterprises, including social cooperatives, total 16,750 and represent 4.4% of the entire third sector. The request for banks to take a more active role in designing territorial strategies and sharing risks is understood by institutions like Intesa Sanpaolo but not yet widespread among all banks.
In summary, hybrid finance tools for social enterprises and social cooperatives in 2025 are evolving through greater innovation and integration with impact finance, supported by targeted training and capacity building. However, challenges remain around complexity, skills gaps, regulatory environments, and talent needs. Events and networks like Impact Minds and Social Enterprise Summit provide crucial platforms for learning, innovation sharing, and collaboration to address these challenges effectively.
- To address the challenges in the social economy sector and enhance the effectiveness and sustainability of social enterprises, the focus is shifting towards hybrid finance solutions that combine traditional financing with impact investment and fintech innovations, such as AI-driven personalization and decentralized finance platforms.
- As the president of the Consorzio Cgm, Giusi Biaggi's call for banks to broaden their perspective of the third sector is supported by the increasing need for banks to provide support and training, not just in the form of credit but also in training and innovation, for businesses and social cooperatives to leverage new financial models like blended finance and digital platforms.
