Regional financing at the heart of Volksbank cooperatives » Leadersnet

On Tuesday, ÖGV CEO Peter Haubner provided information at a press conference about the reorganization of the 34 regional Volksbank cooperatives with their current 460,452 members. Monika Cesar Liebitzeder, Managing Director of Volksbank Styria, took the opportunity to illustrate what regional financing could look like in concrete terms.

“Following the successful restructuring and the full repayment of state aid, Volksbank is once again 100 percent owned by customers who own shares as cooperative members. They are our strongest asset for the future and ensure our consolidation in the regions,” said Peter Hübner.

Millions distributed to cooperatives and members

This ownership structure also means that the money generated by the Volksbanks remains entirely in the region and does not flow to foreign investors or hedge funds. “On the one hand, we are strengthening the share base and making provisions for the future, and on the other hand, a total of EUR 11.4 million has flowed this year in the form of dividends to the Volksbank cooperatives or directly to the members,” says Hübner.
Three of the nine institutions in the Volksbanken association are directly owned by members, the remaining six are joint-stock companies owned by regional investment cooperatives, and the clients are then members there.

Promoting regional projects

Although each cooperative decides independently, this year they have agreed on a common profit distribution strategy with a clear commitment to the financing mandate, which is also based on the articles of association, said ÖGV Chairman Haubner. He described the cooperative profit cycle as the central focus. The money generated by the Volksbanks should therefore benefit and strengthen the regional projects through the cooperatives. This strengthens the business location and in turn generates more business for Volksbanks.

Regional financing using the example of Styria

Monika Cesar Lipitzeder, Managing Director of Volksbank Styria, then explained what this funding could look like in concrete terms. The bank has launched an initiative with its investment cooperatives in Styria to support projects in the areas of energy transition, sustainability or financial education with up to 7,500 euros. This year a total of 300,000 euros has been made available for this purpose. The cooperative members then decide by vote which projects will be awarded the contract.

“We want to make the regions of Styria better in a sustainable way, and this is our new interpretation of the mandate for cooperative financing,” said Cesar Lipitzeder.

Offensive for new members

“Our goal is to convince more Austrians of the power of the cooperative idea. That is why we are launching a campaign to recruit new members,” says Haupner, Chairman of the ÖGV Board of Management, looking to the future. The attractive brand “Volksbank Owners Club” has been developed for this purpose and has already been rolled out in Vienna, most of Lower Austria, throughout Styria and in Vorarlberg. “Not all banks are the same,” says Haupner. “Who owns a financial institution makes a big difference. Instead of shareholder value, net profit maximization and hedge fund profits, Volksbank focuses on the value of its regional members.”

Leadernet He was at the press conference. You can get an impression here.

www.genossenschaftsverband.at