Virtual Solidarity Networks: The Development of E-social Banking

Abstract

The development of Web 2.0 has accelerated a wide range of social transformations, due to facilitating the development of new forms of social articulation through social networks and the generation of communities and groups of interest. In addition, it enables that the users participate actively to develop a collective intelligence worldwide. In this context, new social organizations or networks are designed as places where you can find the supply and demand of projects and other social needs. Web 2.0 allows the creation of efficient markets (low transaction costs, perfect competition, transparency, penalizing opportunistic behavior...) and also, the generation of exchange sites from a philanthropic approach. In this paper some experiences of virtual networks of solidarity have been selected based on three main criteria. Firstly, these organizations are recognized as successful and innovative in the philanthropic area. Secondly, those cases where there are already some secondary data have been studied. Thirdly, in some instances, the authors have participated, or attempted to participate, as users and donors. Ten organizations have been analyzed: six “peer to peer charities” that channel micro grants and four microfinance institutions. All of them through a social banking model on Internet, which uses micro-credit banking as the main instrument to support entrepreneurs from different countries. Based on the collected information, a number of common patterns of behavior have been identified for the development of effective networks. This may constitute a useful starting point to discern trends and possibilities for the world of social solidarity and accessing to financial resources by entrepreneurs and people needed. Among others, this highlights the importance of loyalty among social investors or knowledge of the supply of “projects” that require funding.