INITIATIVES FOR THE IMPLEMENTATION OF REGIONAL CROWDFUNDING SYSTEMS IN THE FINANCIAL GROUP OF GERMAN SAVINGS AND VOLKS- RAIFFEISEN BANKS

Abstract

Purpose of the Study: The subject of consideration is crowdfunding as an innovative method of acquiring sponsors for the implementation of projects. The considerations were devoted to the initiatives of the Sparkassen-Finanzgruppe and the Volks-Raiffeisen banks in the implementation of regional crowdfunding systems in these banks. The aim of the research was to answer the following question: what are the sizes (in terms of value and quantity) of the analyzed market sub-segment and its specificity. Methodology: Crowdfunding platforms were identified at individual savings banks and VR banks. The data was searched on internet resources, supported by, inter alia, lists of such financial institutions. The final data was obtained directly from the websites of financial institutions, or they were aggregated. The research was carried out at the turn of May and June 2021, with data verification as of June 7, 2021.Main Findings: The article explores a specific market segment in Germany - savings banks and Volks-Raiffeisen banks that implement donation crowdfunding platforms. The scope of implementation of such systems was determined by identifying individual analyzed financial institutions. Methods of project co-financing by banks were highlighted. The value of accumulated financial resources (capital) and the scope of project implementation were measured, separating the size of the market sub-segment under study. The examined systems collectively obtained a relatively large amount, over EUR 86.3 million. Applications of the Study: The presented article relates to the use of crowdfunding methods in selected financial institutions: German savings banks and VR banks. This implies considerations in several scientific fields, incl. economics and finance (the possibility of measuring the market segment; the specificity of banks' operation), IT (in economic applications), or sociology (relations between donors / sponsors and financial institutions). Novelty / Originality of this Study: Scientific literature on the use of crowdfunding in financial institutions, in particular the measurement of the size of this market segment, is practically non-existent. Thus, getting to know the specifics and distinguishing in this article the size (in terms of value and quantity) of the crowdfunding sub-segment in German savings banks and VR banks, although partial, seems promising. This opens a pool of further studies in this area with the possibility of comparing them.