The Values-Based Banking: A bank business model that creates a positive impact on the triple bottom line

Abstract

Banks have been slow to react concerning how they can contribute to sustainable development. The worldwide business community wants to understand how a new type of business model known as values-based banking can create a positive impact on “the triple bottom line”—people, planet, and prosperity—as well as how corporate sustainability is implemented in the banking sector. The aim of this study is to explain the current state corporate sustainability in values-based banks. This qualitative research study created a systematic framework obtained from literature and from reports submitted by eight values-based banks around the world. Grounded theory was used to identify the characteristics that explain the current situation of corporate sustainability from a systematic approach. Findings revealed the characteristics of this business model and identified which characteristics performed similarly or not across banks, leading to a proper understanding of the current state of corporate sustainability. Overall, these banks reported a strong commitment to serving society; it was reflected in every stage of an input-outcome system. This indicates the possibility that the business model of values-based banking can contribute positively to society in both immediate results as well as the long term through key characteristics such as financial inclusion, leadership, and transparency.