RABOBANK
What does Rabobank look like today ? 125 years after its founding , Rabobank is an immense organisation with international reach . Rabobank is one of the leading banks in the Netherlands with a focus on mortgages and SME lending . In 50 years , the number of local led Rabobanks reduced considerably , from 1,192 independent local member banks in 1972 to one Rabobank with 78 regional areas today .
Globally , Rabobank ’ s business is focused on being a food and agri bank , true to its roots as a farmers ’ banking cooperative . As such , it ’ s heavily active in North America , South America , and Australia – parts of the world where food and crop production make up vital parts of the economy . But Rabobank finances all players throughout the entire food value chain , from farmers at one end to retailers at the other .
Rabobank ’ s balance sheet globally is more than € 600bn and , last year , the bank made almost € 2.8bn in profit from € 12bn ’ s worth of revenue .
Despite its massive scale , Rabobank hasn ’ t allowed its growth to diminish its cooperative heritage or dampened its core values ; in fact , the business still operates with much the same mindset today as it did over 100 years ago .
“ The idea behind the cooperative was to fix things together that you cannot fix alone ,” Leurs explains . “ At that time , it was bigger farmers helping smaller farmers to access credit so they could build and grow their business . Of course , we have grown to be a much bigger bank that ’ s not only focused on food and agri anymore , but that has broadened its scope and its activities . But the mentality and culture of a cooperative – of fixing things together – still exists within the organisation .”
In part , he credits Rabobank ’ s success to its operating model , which is unique among global institutions of this size . As a cooperative , Rabobank exists for the mutual benefit of its members . Unlike listed companies , this means that it ’ s able to take a more strategic long-term approach rather than focusing on just short-term profits . You occasionally see that distinction in family-run businesses as well , Leurs points out .
Over time , the cooperative ’ s main priorities have evolved , even while its focus on food and agri have remained the same . Today , Rabobank has its eyes firmly set on deep-set social issues that affect all of society – including food security and energy security .
How can banking have a positive impact on society ? According to the United Nations ’ Food and Agriculture Organization ( FAO ), food security remains one of the most pressing concerns in today ’ s world . Its latest update , published at the end of 2022 , lays bare the issues facing the global food supply chain :
“ Malnutrition in all its forms remains a challenge , and child malnutrition , in particular , is expected to be higher due to the effects of the COVID- 19 pandemic ,” the FAO writes . The report continues : “ Climate change poses the greatest
“ THE IDEA BEHIND THE COOPERATIVE WAS TO FIX THINGS TOGETHER THAT YOU CANNOT FIX ALONE ”
BART LEURS CHIEF INNOVATION & TECHNOLOGY OFFICER , RABOBANK
86 fintechmagazine . com | June 2023