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INITIATIVES FOR THE IMPLEMENTATION OF REGIONAL CROWDFUNDING SYSTEMS IN THE FINANCIAL GROUP OF GERMAN SAVINGS AND VOLKS- RAIFFEISEN BANKS
Corresponding Author(s) : Dariusz T. Dziuba
Humanities & Social Sciences Reviews,
Vol. 9 No. 4 (2021): July
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.
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- Agrawal, A., Catalini Ch. & Goldfarb A. (2011). The Geography of Crowdfunding, The National Bureau of Economic Research (NBER). NBER Working Paper, no. 16820, February. https://doi.org/10.3386/w16820 DOI: https://doi.org/10.3386/w16820
- Agrawal, A., Catalini Ch. & Goldfarb A. (2013). Some Simple Economics of Crowdfunding. The National Bureau of Economc Research. NBER Working Paper, No. 19133. https://doi.org/10.3386/w19133 DOI: https://doi.org/10.3386/w19133
- Agrawal, A., Catalini Ch. & Goldfarb A. (2013). Crowdfunding: Social Frictions in the Flat World?. University of Toronto, NBER Working Paper, 14 October.
- Agrawal, A., Catalini, C. & Goldfarb, A. (2015). Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions. Journal of Economics & Management Strategy, 24, 253-274. http://dx.doi.org/10. 1111/jems.12093. DOI: https://doi.org/10.1111/jems.12093
- Belleflamme, P., Lambert, T. & Schwienbacher, A. (2010). Crowdfunding. An Industrial Organization Perspective, http://economix.fr/pdf/workshops/2010_dbm/Belleflamme_al.pdf
- Belleflamme, P., Lambert, T. & Schwienbacher, A. (2012). Crowdfunding. Tapping the right crowd. Working Paper. online http://ssrn.com/abstract=1578175. https://doi.org/10.2139/ssrn.1836873 DOI: https://doi.org/10.2139/ssrn.1836873
- Belleflamme, P., Lambert, T. & Schwienbacher, A. (2013). Individual Crowd-funding Practices. Venture Capital, 15(4), https://doi.org/10.2139/ssrn.2151179 DOI: https://doi.org/10.1080/13691066.2013.785151
- Belleflamme, P., Lambert, T. & Schwienbacher, A. (2014). Crowdfunding: Tapping the Right Crowd, Journal of Business Venturing, 29(5), 585-609. https://doi.org/10.1016/j.jbusvent.2013.07.003 DOI: https://doi.org/10.1016/j.jbusvent.2013.07.003
- Benz, J. (2013). Social Media is not just Facebook. It`s more about company culture and attitudes towards innovation. 15 July, https://blog.gift.com/
- Borello, G., Crescenzo V. de & Pichler, F. (2015). The Funding Gap and the Role of Financial Return. Crowdfunding: Some Evidence From European Platforms. Journal of Internet Banking and Commerce, 20(1).
- Dapp, T. F. (2013). Crowdfunding: An alternative source of funding with potential, In Banking Technology Snapshot. Deutsche Bank Research, Deutsche Bank AG, Frankfurt am Main.
- Dziuba, D.T. (2021). Crowdfunding korporacyjny. Difin, Warszawa.
- Dziuba, D.T. (2015). Ekonomika crowdfundingu. Zarys problematyki badawczej. Difin, Warszawa.
- Estellés-Arolas, E., González, L. & Guevara, F. (2012). Towards an integrated crowdsourcing definitions. Journal of Information Science, 38(2), 189–200. https://doi.org/10.1177/0165551512437638 DOI: https://doi.org/10.1177/0165551512437638
- Lambert, T. & Schwienbacher, A. (2010). An Empirical Analysis of Crowdfunding. Université catholique de Louvain & Univerity of Amsterdam, Business School. SSRN Electronic Journal 1-23.
- Landessportbund, Nordrhein-Westfalen (2019). Viele schaffen mehr. Volksbanken und Raiffeisenbanken fördern gesellschaftliches Engagement vor Ort!, https://www.vibss.de/
- Marktspiegel (2020). Viele schaffen mehr. Volksbank bietet Crowdfunding-Plattform, https://www.marktsp iegel-verlag.de/.
- Menon, K., Kärkkäinen, H., Jussila, J., Huhtamäki, J., Mukkamala, R. R., Lasrado, L. A., Vatrapu R. & Hussain, A. (2018). Analysing the role of crowdfunding in entrepreneurial ecosystems. A social media event study of two compating product launches, Entrepreneurship and Small Business, 4(33), 575-606. https://doi.org/10.1504/IJ ESB.2018.090363 DOI: https://doi.org/10.1504/IJESB.2018.090363
- Mollick, E. R. (2012). The Dynamics of Crowdfunding: Determinants of Success and Failure. Draft document, 25 July, The Wharton School of the University of Pennsylvania; SSRN. https://doi.org/10.2139/ssrn.2088298 DOI: https://doi.org/10.2139/ssrn.2088298
- Mollick, E. R. (2013). Swept Away by the Crowd? Crowdfunding, Venture Capital, and the Selection of Entrepreneurs. University of Pennsylvania – Wharton School; SSRN, http://ssrn.com/abstract=2239204. https://doi.org/10.2139/ssrn.2239204 DOI: https://doi.org/10.2139/ssrn.2239204
- Mollick, E. R. (2014). The Dynamics of Crowdfunding: An Exploratory Study. Journal of Business Venturing, 1 (29): 1-16. https://doi.org/10.1016/j.jbusvent.2013.06.005 DOI: https://doi.org/10.1016/j.jbusvent.2013.06.005
- Mollick, E. R. (2016). The Unique Value of Crowdfunding Is Not Money – It`s Community. Harvard Business Review, April 21.
- Monz, S. (2013). Crowdfunding bei der Volksbank BÈ•hl, 10 Mai, https://www.ruv- blog.de/
- Mȕnchner Bank (2020). Viele schaffen mehr & gutes vereint. In Mȕnchner Bank eG, Stark und verlässlich. Geschäftsberich 2020.
- Pietro, Di F. (2020). Crowdfunding for Entrepreneurs. Developing Strategic Advantage through Entrepreneurial Finance. Routledge, Taylor & Francis Group, London – New York. https://doi.org/10.4324/ 9780429319785 DOI: https://doi.org/10.4324/9780429319785
- Ryu, S. (2020). Beauty of Crowdfunding. Blooming Creativity and Innovation in the Digital Era. Routledge, Taylor & Francis Group, London – New York. https://doi.org/10.4324/9780429243714 DOI: https://doi.org/10.4324/9780429243714
- Schwienbacher, A. & Larralde, B. (2010). Crowdfunding of Small Entrepreneurial Ventures. In Handbook of Entrepreneurial Finance, Oxford University Press, Oxford. https://doi.org/10.2139/ssrn.1699183 DOI: https://doi.org/10.2139/ssrn.1699183
- Shneor, R., Zhao, L. & Flaten, B.-T., eds. (2020). Advances in Crowdfunding. Research and Practice. Palgrave Macmillan. https://doi.org/10.1007/978-3-030-46309-0 DOI: https://doi.org/10.1007/978-3-030-46309-0
- Sparkasse (2021). Wir Å«ber uns: Stark im Verbund, https://www.sparkasse.de/
- Telekom (2013). New crowdfunding model for the financial media sector: T-Systems supports platform for crowd financing, 22 May, https://www.telekom.com/
- Volksbanken Kaiserlautern eG (2017). Crowdfunding-Projekte erfolgreich, https://www.vobakl.de/
- Wash, R. (2013). The Value of Completing Crowdfunding Projects, Proceedings of the International Conference on Weblogs and Social Media, Boston, MA, July.
References
Agrawal, A., Catalini Ch. & Goldfarb A. (2011). The Geography of Crowdfunding, The National Bureau of Economic Research (NBER). NBER Working Paper, no. 16820, February. https://doi.org/10.3386/w16820 DOI: https://doi.org/10.3386/w16820
Agrawal, A., Catalini Ch. & Goldfarb A. (2013). Some Simple Economics of Crowdfunding. The National Bureau of Economc Research. NBER Working Paper, No. 19133. https://doi.org/10.3386/w19133 DOI: https://doi.org/10.3386/w19133
Agrawal, A., Catalini Ch. & Goldfarb A. (2013). Crowdfunding: Social Frictions in the Flat World?. University of Toronto, NBER Working Paper, 14 October.
Agrawal, A., Catalini, C. & Goldfarb, A. (2015). Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions. Journal of Economics & Management Strategy, 24, 253-274. http://dx.doi.org/10. 1111/jems.12093. DOI: https://doi.org/10.1111/jems.12093
Belleflamme, P., Lambert, T. & Schwienbacher, A. (2010). Crowdfunding. An Industrial Organization Perspective, http://economix.fr/pdf/workshops/2010_dbm/Belleflamme_al.pdf
Belleflamme, P., Lambert, T. & Schwienbacher, A. (2012). Crowdfunding. Tapping the right crowd. Working Paper. online http://ssrn.com/abstract=1578175. https://doi.org/10.2139/ssrn.1836873 DOI: https://doi.org/10.2139/ssrn.1836873
Belleflamme, P., Lambert, T. & Schwienbacher, A. (2013). Individual Crowd-funding Practices. Venture Capital, 15(4), https://doi.org/10.2139/ssrn.2151179 DOI: https://doi.org/10.1080/13691066.2013.785151
Belleflamme, P., Lambert, T. & Schwienbacher, A. (2014). Crowdfunding: Tapping the Right Crowd, Journal of Business Venturing, 29(5), 585-609. https://doi.org/10.1016/j.jbusvent.2013.07.003 DOI: https://doi.org/10.1016/j.jbusvent.2013.07.003
Benz, J. (2013). Social Media is not just Facebook. It`s more about company culture and attitudes towards innovation. 15 July, https://blog.gift.com/
Borello, G., Crescenzo V. de & Pichler, F. (2015). The Funding Gap and the Role of Financial Return. Crowdfunding: Some Evidence From European Platforms. Journal of Internet Banking and Commerce, 20(1).
Dapp, T. F. (2013). Crowdfunding: An alternative source of funding with potential, In Banking Technology Snapshot. Deutsche Bank Research, Deutsche Bank AG, Frankfurt am Main.
Dziuba, D.T. (2021). Crowdfunding korporacyjny. Difin, Warszawa.
Dziuba, D.T. (2015). Ekonomika crowdfundingu. Zarys problematyki badawczej. Difin, Warszawa.
Estellés-Arolas, E., González, L. & Guevara, F. (2012). Towards an integrated crowdsourcing definitions. Journal of Information Science, 38(2), 189–200. https://doi.org/10.1177/0165551512437638 DOI: https://doi.org/10.1177/0165551512437638
Lambert, T. & Schwienbacher, A. (2010). An Empirical Analysis of Crowdfunding. Université catholique de Louvain & Univerity of Amsterdam, Business School. SSRN Electronic Journal 1-23.
Landessportbund, Nordrhein-Westfalen (2019). Viele schaffen mehr. Volksbanken und Raiffeisenbanken fördern gesellschaftliches Engagement vor Ort!, https://www.vibss.de/
Marktspiegel (2020). Viele schaffen mehr. Volksbank bietet Crowdfunding-Plattform, https://www.marktsp iegel-verlag.de/.
Menon, K., Kärkkäinen, H., Jussila, J., Huhtamäki, J., Mukkamala, R. R., Lasrado, L. A., Vatrapu R. & Hussain, A. (2018). Analysing the role of crowdfunding in entrepreneurial ecosystems. A social media event study of two compating product launches, Entrepreneurship and Small Business, 4(33), 575-606. https://doi.org/10.1504/IJ ESB.2018.090363 DOI: https://doi.org/10.1504/IJESB.2018.090363
Mollick, E. R. (2012). The Dynamics of Crowdfunding: Determinants of Success and Failure. Draft document, 25 July, The Wharton School of the University of Pennsylvania; SSRN. https://doi.org/10.2139/ssrn.2088298 DOI: https://doi.org/10.2139/ssrn.2088298
Mollick, E. R. (2013). Swept Away by the Crowd? Crowdfunding, Venture Capital, and the Selection of Entrepreneurs. University of Pennsylvania – Wharton School; SSRN, http://ssrn.com/abstract=2239204. https://doi.org/10.2139/ssrn.2239204 DOI: https://doi.org/10.2139/ssrn.2239204
Mollick, E. R. (2014). The Dynamics of Crowdfunding: An Exploratory Study. Journal of Business Venturing, 1 (29): 1-16. https://doi.org/10.1016/j.jbusvent.2013.06.005 DOI: https://doi.org/10.1016/j.jbusvent.2013.06.005
Mollick, E. R. (2016). The Unique Value of Crowdfunding Is Not Money – It`s Community. Harvard Business Review, April 21.
Monz, S. (2013). Crowdfunding bei der Volksbank BÈ•hl, 10 Mai, https://www.ruv- blog.de/
Mȕnchner Bank (2020). Viele schaffen mehr & gutes vereint. In Mȕnchner Bank eG, Stark und verlässlich. Geschäftsberich 2020.
Pietro, Di F. (2020). Crowdfunding for Entrepreneurs. Developing Strategic Advantage through Entrepreneurial Finance. Routledge, Taylor & Francis Group, London – New York. https://doi.org/10.4324/ 9780429319785 DOI: https://doi.org/10.4324/9780429319785
Ryu, S. (2020). Beauty of Crowdfunding. Blooming Creativity and Innovation in the Digital Era. Routledge, Taylor & Francis Group, London – New York. https://doi.org/10.4324/9780429243714 DOI: https://doi.org/10.4324/9780429243714
Schwienbacher, A. & Larralde, B. (2010). Crowdfunding of Small Entrepreneurial Ventures. In Handbook of Entrepreneurial Finance, Oxford University Press, Oxford. https://doi.org/10.2139/ssrn.1699183 DOI: https://doi.org/10.2139/ssrn.1699183
Shneor, R., Zhao, L. & Flaten, B.-T., eds. (2020). Advances in Crowdfunding. Research and Practice. Palgrave Macmillan. https://doi.org/10.1007/978-3-030-46309-0 DOI: https://doi.org/10.1007/978-3-030-46309-0
Sparkasse (2021). Wir Å«ber uns: Stark im Verbund, https://www.sparkasse.de/
Telekom (2013). New crowdfunding model for the financial media sector: T-Systems supports platform for crowd financing, 22 May, https://www.telekom.com/
Volksbanken Kaiserlautern eG (2017). Crowdfunding-Projekte erfolgreich, https://www.vobakl.de/
Wash, R. (2013). The Value of Completing Crowdfunding Projects, Proceedings of the International Conference on Weblogs and Social Media, Boston, MA, July.