Would you invest in a financial company? That question probably feels aimed at a narrow demographic, such as venture capitalists, and comes with an end goal of soaring profits. What if we told you the finance company offers loans? You might assume some predatory marketing tactics to be at play, aimed at taking advantage of those in need. But there is, in fact, another way of doing business that actually aims to help – not exploit – the financially vulnerable.
Ethex is a platform dedicated to giving everyday people a chance to invest in companies and projects that are committed to social change. Through crowdfunding, Ethex investors can choose a socially conscious organisation in which to invest, safe in the knowledge that their money is going to help people in need. Many companies raising money on Ethex are ethical finance companies, which assist people with low or no credit scores access financial products – with strict terms in place to protect their customers.
Take Great Western Credit Union, a co-operative, not-for-profit provider of ethical savings and loans in south west England. Here, customers are members, meaning they have a say in the way their credit union is run. Members’ savings are protected by the Financial Services Compensation Scheme (FSCS) and pooled together to offer affordable loans to people all across the region. Last year, the organisation successfully raised more than £1.9m on Ethex, an impressive 237% of its £800,000 target, with all funds contributing to growth in lending and improving offerings to meet the changing needs of members.
