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Lee, AWeiland, C (2020). Impact Investing Through Crowdlending: Examining the Role of Intermediation and the Potential for Development Banks. Vierteljahrshefte zur Wirtschaftsforschung, 89(3), 99-118. https://doi.org/10.3790/vjh.89.3.99
Lee, Andrew Weiland, ChristianeLee, Andrew Weiland, Christiane (2020). "Impact Investing Through Crowdlending: Examining the Role of Intermediation and the Potential for Development Banks" Vierteljahrshefte zur Wirtschaftsforschung, vol. 89no. 3, 2020 pp. 99-118. https://doi.org/10.3790/vjh.89.3.99
Lee, AWeiland, C (2020). Impact Investing Through Crowdlending: Examining the Role of Intermediation and the Potential for Development Banks. Vierteljahrshefte zur Wirtschaftsforschung, Vol. 89 (Issue 3), pp 99-118. https://doi.org/10.3790/vjh.89.3.99

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Impact Investing Through Crowdlending: Examining the Role of Intermediation and the Potential for Development Banks

Lee, Andrew | Weiland, Christiane

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 89 (2020), Iss. 3 : pp. 99–118

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Andrew Lee, DHBW Karlsruhe

  • Andrew Lee is a professor of economics at the Baden-Wuerttemberg Cooperative State University in Karlsruhe. He completed his doctorate in economics at the University of Basel in 2001 and worked for UBS AG until 2005. He then returned to the University of Basel, where he undertook two research projects concerning the impact of Fair Trade, until accepting the current post he now holds in Karlsruhe in 2009. His research interests are in international trade in general and in Fair Trade in particular.
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Christiane Weiland, DHBW Karlsruhe

  • Christiane Weiland is head of the degree programme in banking at the Baden-Wuerttemberg Cooperative State University in Karlsruhe. She is also a member of the Supervisory Board and Chairwoman of the Audit Committee of the Deutsche Investitions- und Entwicklungsgesellschaft DEG. She graduated in business administration at the University of Applied Sciences of the Deutsche Bundesbank and in economics at the Goethe University in Frankfurt am Main. She holds a PhD from the University of Heidelberg. Her professional stations at Deutsche Bundesbank and PwC deepened her expertise in finance. Christiane Weiland’s current areas of research focus on regulation, digital transformation in finance and development finance.
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Abstract

Summary: Development banks are facing changing market conditions with low interest rates, rapid technological change, and an increased interest in impact investment. This combination of factors challenges traditional processes and business models, but also provides a chance to develop new and sustained business opportunities. We examine examples of impact investment crowdfunding platforms in an international and domestic context. We evaluate their organisational structure, especially in connection with the potential integration of an intermediary and possible conflicts of interest. Our analysis provides both economic justification for activities of promotional and development banks in this area and new inputs for expanding their business model with a transparent and trustworthy financial lending instrument for small-scale retail investors.