Fintech platform Coop Exchange launched an EU subsidiary in Malta on 13 July as part of its efforts to build a global network of stock exchanges dedicated to co-operatives and mutuals.
Headquartered in London, Coop Exchange is an international platform for raising capital and trading financial instruments rooted in the co-operative and mutual sector.
The launch featured keynotes by co-operative leaders and high-level politicians, including Maltese prime minister Robert Abela, who highlighted his country’s ambition to lead in sustainable finance and digital transformation. Abela added that his administration would fully support Coop Exchange in “becoming an integral part of Malta’s dynamic and progressive financial sector”. Malta’s finance minister, Clyde Caruana, also attended the event.
“Imagine a world where public ownership is characterised by community-driven investments that shape the future for the benefit of those communities,” said Stephen Gill, founder and CEO of Coop Exchange. “Investments supported by purpose-oriented investors and institutions who appreciate that sustainable financial investment and socially conscious impact investing are not mutually exclusive but can be a force for good. This transformative shift in our economic paradigm is what Coop Exchange is at the forefront of.”
Gill also talked about the need to align investments with co-operative values. “Younger generations are demanding a new way of doing business,” he said, “pushing those in power to address wealth inequality and driving investment towards community-owned, purpose-oriented organisations. Co-operatives, with their inherent values of equity, solidarity, and mutual support, align closely with the principles of ESG investing.”
Related: How Coop Exchange wants to revolutionise access to capital
Ariel Guarco, president of the International Cooperative Alliance (ICA), told the event: “Coop Exchange is a fundamental instrument for the fulfilment of our co-operative principles and for increasing the economic power of the co-operative movement on a global scale.
“By directing resources towards a triple impact: economic, social, and environmental, Coop Exchange demonstrates that co-operative principles can and should be put into action through concrete tools that generate visible fruits for co-operatives and strengthen the co-operative ecosystem globally.”
His comments were echoed by the ICA director general, Jeroen Douglas, who addressed the issue of growing inequality.
“Prosperity for all cannot be achieved without inclusive finance,” he said. “Coop Exchange will offer a unique opportunity to close the income gap and provide finance for those who need it most.”
Earlier this year Coop Exchange completed its pre-seed funding round, which saw it reach a £10m valuation, with Canadian insurer Co-operators leading the investment with a contribution of over CA$2m, acquiring a 12.4% stake. Co-operators is a member of the International Co-operative and Mutual Insurance Federation (Icmif), whose president and CEO, Shaun Tarbuck is also a non-executive director of Coop Exchange.
“The co-operative movement is now necessary because we are long-term thinkers,” said Tarbuck. “The UK government’s pledge to double the size of the co-operative economy over the next five years is inspiring. Imagine if 25 governments made similar commitments by 2025, it would change inequality and create a fairer society and jobs.”
Barry O’Dwyer, non-executive director of Coop Exchange and Group CEO of Royal London, also talked about the importance of ESG considerations for many young people.
“Recent research shows that ESG considerations are in the top three priorities for millennials, and the only priority for Gen Z,” he said. “Coop Exchange offers the opportunity to connect the immense amounts of patient capital in the pensions markets with businesses that deliver long-term sustainable growth based on doing the right thing: being purpose-driven and having people at their core.”
Participants also heard from Pauline Green, a non-executive director of Coop Exchange and former ICA President, who emphasised the need for innovative solutions for co-operative capital.
“Coop Exchange is a creative, new way of doing business for co-operatives,” she said, “and it has the potential to help double the size of co-operatives in the UK and hopefully worldwide. This launch marks our progress towards resolving the challenges of co-operative capital acquisition.”
More information on Coop Exchange is available on its website.
