Hybrid Banking

New business models are characterized by collective and shared value creation. This implies that the revenues of a joint initiative not only result in monetary gains but also in other valuable things such as time, attention, experience, and energy. Making these non-monetary values interchangeable enhances the resilience of society and the economy within. A hybrid value system should make that possible. Preliminary research over the period of 2013 – 2014 indicates that there are many exchange systems of barter platforms, time banks, blocks-chains, and regional currencies that exhibit the building blocks and aspects of what an ideal hybrid bank system would characterize. At the same time, this research shows that a proper-functioning hybrid banking system still does not exist anywhere.

The research on a hybrid baking system intends to identify two things: what are the building blocks of such a system, and what are the (institutional) conditions in order to succeed? Many of these components are now identified and brought together in a “toolbox” that facilitate building a hybrid banking system. Based on these outcomes, a coherent model was developed for the design of a hybrid operational system including a list of components and rules that are required to make it work. This model was tested in two real-life pilots in the spring of 2014 which concluded the first two phases of the study. The next step is to carry out large-scale pilots over a longer period of time. In order to make this happen in everyday reality with a common citizen dedicated community, software is needed that enables the participants to create transactions based on the parallel use of multiple values. How this type of software can be developed is the object of a study during spring 2016. The aim is to reflect on and perhaps lay the foundations for a ‘Monetary Internet of Hybrid Values’ (working title). The focus of this study is to investigate how the recent generation of block chain software can be utilized in a hybrid banking system. We will inform you when we have new results for this challenging project.

The results of the first two years of research have been published in a Working Paper called Hybrid Banking. A free copy in Dutch is available here. A free copy of a Working Paper in English can be obtained here.