Developing and implementing a social strategy is a key challenge and a competitive advantage for banks and insurance companies. It is even becoming a necessity in an increasingly challenging macroeconomic, demographic, and social environment.
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Issues to be addressed by the social strategy of banks and insurance companies
Bankers and insurers, as key players in the economic ecosystem, have a central role to play in this area. Indeed, they contribute to both:
- reducing poverty and inequalities of opportunity in local communities;
- to the economic stability of the businesses located there.
For example, here is a sample of issues on which bankers and insurers can have a positive impact and a financial stake.
- For the same working hours, women's average salary is 14.9% lower than men's.
- Climate change could cause an additional 2.5 million deaths a year worldwide between 2030 and 2050.
- Between 9% and 12% of the French population lives in a medical desert.
- The increase in overweight and obesity is strongly correlated with income and education levels.
Creating the conditions for sustainable growth through our corporate strategy
The adoption of a societal strategy by banks and insurance companies not only meets the expectations of stakeholders. It also creates the conditions for sustainable growth.
Banks and insurance companies must therefore act responsibly and proactively now more than ever. It is crucial for their leaders to embrace these challenges. This requires a clear roadmap that maximizes both economic benefits and societal impact.
How can banks and insurance companies adopt a socially responsible strategy?
Businesses cannot thrive in a deteriorating economic and social environment. By playing an active role in reducing inequalities and fighting poverty, they help to strengthen the stability and resilience of the regions in which they operate.
According to a study by the International Labour Organization, reducing wage inequality would add $28,000 billion to the value of the global economy!
1. Contribute to economic growth and poverty reduction, while promoting its business model
The social and financial inclusion of vulnerable populations contributes directly to economic growth. In fact, it creates new markets and broadens the consumer base.
The local impact is just as crucial. By supporting the most vulnerable populations—particularly through initiatives that provide access to financial services—companies can reduce economic insecurity.
By supporting local projects, investing in sustainable infrastructure or facilitating access to employment and training in disadvantaged areas, companies contribute to the revitalization of these regions.
This support for local communities also helps ensure the economic stability of the businesses located there.
This also strengthens consumer loyalty and the company’s long-term value.88% of consumers are more loyal to companies that are committed to social causes. This makes it a key driver of sustainable growth at the corporate level (OneWay survey)
The now well-established Nickel initiative, with its bankless bank account distributed in tobacconists' shops, is an excellent example of financial inclusion. This product has not only enabled 24% of its customers to access employment, but has also helped 18% of them to obtain housing (source: Nickel social report), while building a viable and growing business model that is gradually attracting other types of customer.
Responsible companies committed to social issues are perceived as more resilient, which attracts impact investments. For banks and insurance companies, societal strategy is becoming an asset for attracting responsible financing and strengthening their global appeal.
2. Develop employee commitment as a performance driver
Initiatives such as Generali's "The Human Safety Net" foundation, which supports vulnerable families and refugee entrepreneurs, and AXA's "AXA Hearts in Action" foundation are concrete examples of how employee commitment can be strengthened by involving them in impact projects.
Such initiatives foster a sense of belonging and pride. This leads to better talent retention and increased productivity.
3. Attract and retain talent
Social commitment also helps to preserve and enhance the company's human capital.
Talents, especially the younger generations, are attracted to companies that demonstrate strong values in terms of social responsibility, diversity, equal pay and well-being, as well as to the common good "outside the walls" of the company, an area often less explored but equally important.
92% of people under 30 believe their company should contribute to the common good (2024 BrandGagement Study). At iQo, we are a mission-driven company and make this consulting approach a key pillar of our employer brand
A well-designed strategy promotes employee attractiveness and loyalty. It creates a sense of belonging and meaning, essential elements for maintaining productivity and commitment over the long term.
4. Grow your resilience
Alignment with societal objectives enables companies to better manage the risks associated with the ecological transition or growing social inequalities. For example, by investing in accessible healthcare solutions, companies can anticipate their customers' future needs while protecting themselves against health or environmental crises.
A well thought-out societal strategy reduces operational risks: by anticipating regulatory and social developments, banks and insurers reduce their exposure to risk.
Implementation of the CSRD (Corporate Sustainability Reporting Directive), which requires (Corporate Sustainability Reporting Directive), which requires companies to submit non-financial reports, shows that institutions that have already integrated these elements into their strategy are better prepared.
Our convictions for the successful implementation of a corporate social responsibility strategy by banks and insurance companies
7 rules for effective implementation...
Businesses cannot thrive in a deteriorating economic and social environment. By playing an active role in reducing inequalities and fighting poverty, they help to strengthen the stability and resilience of the regions in which they operate.
- Define social and societal strategy as a corporate project, involving all employees to strengthen commitment and pride.
- Ensure consistency with the organization's strategy and values by analyzing existing documents and gathering stakeholder expectations.
- Take societal issues into account by collaborating with experts or specialized partners to benefit from in-depth expertise.
- Capitalize on past actions and establish a precise diagnosis of their impact, best practices and areas for improvement.
- Ensure an efficient decision-making rhythm by setting up a representative central working group, guaranteeing regular, collective decisions.
- Highlight 2 to 4 key actions to guarantee concrete, visible implementation and ensure the organization's lasting commitment.
- Regularly measure concrete impacts in relation to defined objectives and redirect actions and investments if necessary
... and a structured approach
To move from intention to action, it's crucial to adopt a structured methodology.
At iQo, we have developed a four-phase approach to accompany you and our partners throughout the process:
-
Understand and explore
Together, we analyze your company's current situation, conduct internal and external interviews to understand stakeholder expectations, and identify priority objectives in line with your corporate strategy, values, business model and the specificities of your organization and locations. -
Focus and prioritize
We help you determine the most impactful actions to implement, by prioritizing those that offer the greatest potential for concrete social and economic impact, the best commitment from your employees, the best visibility on your future talents and customers, among other criteria. -
Structuring implementation
With our support, you can draw up a precise roadmap or amend existing ones, and define the human and financial resources needed to successfully implement your strategy. With the help of our external partners, we can also ensure that your actions are consistent with stakeholder expectations. -
(se) Launch and monitor results
We support you in implementing governance and projects, as well as impact measurement and monitoring tools, while ensuring that your teams are fully involved and motivated on a daily basis.
The social commitment of banks and insurance companies is no longer an option
Today, social commitment is no longer an option, but a necessity if we are to maintain economic competitiveness and guarantee the resilience of our regions.
By acting to reduce poverty, supporting local initiatives and promoting inclusive growth, banks and insurance companies can not only improve their societal impact, but also strengthen their business model.
At iQo, our ambition is toaccompany this transformation and work with you to make your corporate strategy a real driver of growth and attractiveness.
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