What democratising finance is and why matters

At Ethex, our vision is to help create a financial system that works for everyone, not just the privileged few. That’s why we were pleased to host the first of our webinar series on the democratisation of finance—an essential step towards a fairer and more sustainable economy. Our CEO, Lisa Ashford, was joined by James Anthony, Social Investment Portfolio Manager at Friends Provident Foundation, for an engaging discussion that explored how we can shift financial power into the hands of individuals. Here, we summarise what they discussed.

Lisa kicked off the conversation by defining financial democratisation as the process of making fair and accessible financial services available to everyone. Traditionally, a handful of large institutions controlled finance, but today, technology and innovation are opening doors for people to make their own financial choices. Whether it’s savings, pensions, or investments, people now have the power to choose financial products that align with their needs, risk profile AND values.

James highlighted why the democratisation of finance is central to the work of the Friends Provident Foundation. Their vision for a fair and sustainable economy includes this as a key pillar, aiming to shift power away from large corporations and enable everyday people to take control of their financial futures. By making financial services more inclusive, individuals can invest in opportunities that reflect their values and contribute to positive change. Lisa echoed this, adding that Ethex is at the forefront of this movement, using technology for good to disrupt traditional financial services.

During the discussion, we explored some inspiring examples of democratised finance in action. Fintech and mobile banking are making financial products more accessible, allowing people to open accounts and manage their money easily via their phones. Crowdfunding platforms like Ethex empower individuals to invest directly in projects that align with their values, while peer-to-peer lending provides an alternative route for entrepreneurs and small businesses to access funding without relying on banks.

We looked at some community energy projects, such as Solar for Schools and Energy Garden, that allow everyday people to invest in renewable energy initiatives with clear social and environmental benefits. And organisations like Fair for You and Salad Money are offering fairer finance solutions, ensuring people who might otherwise be excluded can access ethical and affordable loans and credit.

Everyday people have a crucial role to play in this movement. As more of us demand transparency and choice, financial providers have to learn to adapt. There is a growing appetite for ethical investing, and as customers seek out financial products that align with their values, companies must respond accordingly. This shift is already making waves, influencing the wider financial landscape.

Despite progress, significant hurdles to the democratisation of finance remain. Social and green investments still make up a small portion of overall investments, meaning mainstream adoption is an ongoing challenge. Gender disparity in investing is another issue, with fewer women investing compared to men, despite women having a strong interest in ethical finance. Macroeconomic pressures, such as the cost of living crisis, can also push people to prioritise short-term financial security over values-based investing. Additionally, a lack of trust and transparency in financial institutions remains a major barrier, with many people struggling to access transparent and impartial information about sustainable financial options.

Platforms like Ethex and foundations such as Friends Provident are working to support this shift towards fairer finance. They are helping to build the infrastructure needed for a democratised economy, investing in impactful grassroots projects, and providing support to de-risk opportunities for investors. Institutional investors also play an important role, as their involvement helps build confidence in values-driven finance. By engaging with companies and policymakers, they can drive further change while making sure people have the information and access they need to make informed investment decisions.

Scaling up our impact
Lisa and James discussed several strategies to increase the reach of democratised finance. Institutional underwriting could help large-scale community energy projects receive the funding they need. Developing more national organisations with the capacity to scale, like Solar for Schools, could create long-term, impactful models. Bundling smaller, grassroots projects together could also attract larger investments, making them more appealing to a broader range of funders.

Collaboration and knowledge sharing within the impact investing sector will be key to unlocking further growth, as will leveraging individual investors to attract institutional support by showcasing successful case studies.

This webinar really brought to life the exciting momentum behind the democratisation of finance. We learned that by breaking down barriers, harnessing technology, and enabling individuals to align their money with their values, we can build a financial system that truly serves people and the planet.

Ethex remains committed to driving this change, and we’re grateful to James Anthony and all our attendees for being part of the discussion. Watch this space for more webinars in this series as we continue exploring how to make finance fairer for all!
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