Social banking has gained prominence as a modern approach within global financial systems, contributing to the sustainable development of communities. Unlike traditional banking, which prioritizes financial profitability, social banking adopts an ethics-driven and socially responsible perspective. It aims to promote social justice and improve quality of life through sustainable financial services, playing a significant role in advancing sustainable development and reducing social and economic inequalities.

  1. Concept and Goals of Social Banking
    Social banking is guided by principles such as supporting small and medium-sized enterprises (SMEs), facilitating access to financial services for vulnerable groups, and investing in social and environmental projects. This approach seeks to foster an economy that not only generates profit for investors but also operates responsibly from social and environmental perspectives. By focusing on goals like equity, sustainability, and social cohesion, social banking provides a comprehensive solution to economic and social challenges.
  2. New Approaches in Social Banking
    Social banking has evolved to include tools and methods tailored to meet modern community needs, including:
    • Green Banking: Emphasizes eco-friendly projects and reducing environmental impacts. This type of banking supports sustainable projects and renewable energy investments, playing a vital role in environmental preservation.
    • Financial Access Facilitation: Expands access to banking services for marginalized communities and low-income groups, particularly through simplified structures and microcredit options.
    • Digital Banking and Financial Innovation: Utilizes technologies like digital banking and online payments to reduce costs and enhance service speed, especially in underdeveloped areas.
  3. Role of Social Banking in Sustainable Development
    Social banking is crucial for sustainable development by upholding principles of social responsibility and economic justice. Key contributions to sustainable development include:
    • Reducing Inequality: By facilitating access to financial services, social banking promotes equal opportunities across social strata, reducing economic and social disparities while enhancing social cohesion.
    • Supporting SMEs: Social banks provide loans and financial support to SMEs, promoting economic growth and creating sustainable job opportunities.
    • Environmental Protection: By investing in green projects and funding environmental initiatives, social banking significantly reduces negative environmental impacts and promotes sustainable growth.
  4. Opportunities for Social Banking in Iran
    Iran has significant potential for advancing social banking, given the growing needs in sustainable development and social equity. By leveraging global experiences and successful models in this field, Iranian banks and financial institutions can contribute to the country’s economic and social well-being through innovative financial services. Establishing social banking networks and supporting social and environmental enterprises could be a crucial step toward sustainable development in Iran.

Conclusion
Social banking offers vast potential for advancing sustainable development and social equity. The Innovation and Social Economy Research Institute at the University of Tehran is conducting applied research and studying successful global models to develop scientific and practical strategies for promoting social banking in Iran.

This modern approach not only supports economic improvement but also finances social and environmental projects, paving the way toward a more sustainable and equitable society.