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| cofi:collaborative_finance [2026/07/22 13:57] – [Specialist curators of this topic] Dave Darby | cofi:collaborative_finance [2026/08/11 12:45] (current) – Matthew Slater |
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| | ===== What is collaborative finance? ===== |
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| The commons movement is a backlash to the idea of private property, in which ownership of land and other assets is exclusive, which gradually splits society into classes of owners and of the dispossessed. But ownership is just a part of the problem. | The commons movement is a backlash to the idea of private property, in which ownership of land and other assets is exclusive, which gradually splits society into classes of owners and of the dispossessed. But ownership is just a part of the problem. |
| Meanwhile, for most of us the financial services have become like indifferent machines: algorithms decide if we are creditworthy; our pensions are used to finance polluting industry and war-criminal governments; we struggle to keep our data from predators and time-wasters. We watch all the money slipping through our fingers and being collected in enormous pools which overflow with riches we may never enjoy. | Meanwhile, for most of us the financial services have become like indifferent machines: algorithms decide if we are creditworthy; our pensions are used to finance polluting industry and war-criminal governments; we struggle to keep our data from predators and time-wasters. We watch all the money slipping through our fingers and being collected in enormous pools which overflow with riches we may never enjoy. |
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| Being organised at such a large scale ensures that only remote rich people design these systems and derive all the secondary benefits. But what if there was a more appropriate scale, in which trust actually played a role, in which profit was not the prime directive and was ploughed back into the system? In which the people taking risks helped to manage those risks? What if the so-called free market had space for small-scale financial services? House and car insurance in every street? What if pensions were managed by the local government which, after all, is the provider of elderly care? What if we could invest in the very businesses that produce and sell our necessities, as a way of ensuring our own security? What if those businesses turned around and invested in us, making our security mutual? And what if this myriad of local human financial organisations could de-risk through voluntary federation? | Being organised at such a large scale ensures that only remote rich people design these systems and derive all the secondary benefits. But what if there was a more appropriate scale, in which trust actually played a role, in which profit was not the prime directive and surplus was used to strengthen and stabilise the system? In which risk was managed by the people whose assets are being risked? What if the so-called free market had space for small-scale financial services, like house and car insurance cells for every street? What if pensions were managed by the local government which, after all, is the provider of elderly care? What if we could invest in the very businesses that produce and sell our necessities, as a way of ensuring our own security? What if those businesses turned around and invested in us, making our security mutual? And what if this myriad of local human financial organisations could de-risk through voluntary federation? |
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| One of the first assumptions we unpack is about the role of [[cofi:money]], the thing that integrates all our activities with the omnicidal capitalist machine, and makes *each of us* part of the problem. Money is really good for standardising accounting, taxation and fines but it is quite hard to obtain and hold on to! Maybe if we could enter into different financial relationships we could find other ways to settle debt, to account for exchange and to ensure the future? | One of the first assumptions we unpack is about the role of [[cofi:money]], a public service that integrates all our activities with the omnicidal capitalist machine, implicating *each of us* as part of the problem. To what extent might we distance ourselves from that? How do we finance infrastructure when we don't want to yield financial returns? How can we manage the risk inherent in small groups and informal financial arrangements? Then how long does it take to convince people to use experimental tools for matters critical to their wellbeing? |
| ===== What are the benefits of collaborative finance? ===== | |
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| | ===== What are the benefits of collaborative finance? ===== |
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| Mainstream finance is optimised to maximise profit for the owners by maximising revenue for the customers, at least as far as the cartel allows. The benefits of doing it another way, then, are everything but maximal revenue! Instead finance done collaboratively between peers should be less fearful, more flexible and less legalistic, more fun, more participative, more considerate of the environment and community. It should build social bonds, it should provide more non-monetary and serendipitous returns. | If mainstream finance maximises profit for the owners, the benefits of CoFi are *not* greater rates of return on investment. Instead finance done collaboratively between peers should be less fearful, more flexible and less legalistic, more fun, more participative, more considerate of the environment and community. It should build social bonds, it should provide more non-monetary and serendipitous returns. |
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| | #CoFi is not envisaged as standing on its own, nor does it try to build community around a service. Instead #CoFi is a dimension of the commons, and of each commons. #CoFi is how any group or community manages its resources, short term and long term. |
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| This is the dream, but the obstacles are many. Most people are very conservative with their money and the incumbent system is the devil they know; it is more or less predictable, and is highly efficient. By contrast, a young CoFi initiative has very many ways to fail and potentially lose its members' assets. For this reason it is important not to put all one's eggs in a single #cofi basket. | Its benefits might include having more control over your assets, being able to share your assets with people you care about or people who might reciprocate, having a source of credit or finance which is sympathetic to your or your cirmcumstances, and hopefully not losing everything in a macroscopic event like [The Great Taking](https://thegreattaking.com) or a financial crisis. |
| Another challenge is finding each other and building real, trusting relationships. The people who are awake to the menace of the financial system are thinly spread, which makes it hard for them to meet, to associate, to build trust and to build institutions. | |
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| ===== What can I do? ===== | ===== What can I do? ===== |
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| Finance is always a shared activity - you can't do it on your own! But you can start by deprogramming yourself from deep cultural indoctrination. Reflect on the meanings of words: | Finance is always a shared activity - you can't do it on your own! But you can start by deprogramming yourself from deep cultural indoctrination. Reflect on the meanings of words: |
| /* make some of these into concepts */ | /* make some of these into concepts */ |
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| With this grounding you can work with others to create wealth and security together. Building large-scale, trustworthy institutions from scratch takes years or even decades of patience, yet commoners have achieved it many times before. [[bsoc:building_societies|Building societies]] took hold and thrived amongst the urban poor of the Industrial Revolution; savings pools can be found in nearly all the monetised societies of the world; the Mondragon Coop still dominates a whole region of Spain. But there is a lot of churn in this field. Many projects fail to get off the ground, often for governance or personality problems, and if successful, there is always the danger of being co-opted and the temptation to sell out. | With this grounding you can work with others to create wealth and security together. Building large-scale, trustworthy institutions from scratch takes years or even decades of patience, yet commoners have achieved it many times before. [[bsoc:building_societies|Building societies]] took hold and thrived amongst the urban poor of the Industrial Revolution; savings pools can be found in nearly all the monetised societies of the world; the [Mondragon Coop](https://www.mondragon-corporation.com/en) still dominates a whole region of Spain. But there is a lot of churn in this field. Many projects fail to get off the ground, often for governance or personality problems, and if successful, there is always the danger of being co-opted and the temptation to sell out. |
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| So building a more collaborative financial system can only happen gradually, cautiously, even if you feel the need for it painfully urgently. Even if you never achieve it, the process itself should be immensely valuable for building trust and community around you. | So building a more collaborative financial system can only happen gradually, cautiously, even if you feel the need for it painfully urgently. We do it because it is not glamorous and few others are paying attention. Financial structures become stronger the more they are leaned on, and the more you lean on it, the more you need to participate! That's the virtuous circle. |
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| ==== Come to the gathering ==== | ==== Come to the gathering ==== |
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| {{:cofi:cofi_group_photo.gif?600|}} | {{:cofi:cofi_group_photo.gif?600|}} |
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| ===== Forum ===== | ===== Forum ===== |
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| This topic belongs to the section [[gt:economy|Economy & finance]]. You can ask questions or add information on the corresponding [Forum section](https://forum.growingthecommons.org/t/economy). | This topic belongs to the section [[gt:economy|Economy & finance]]. You can ask questions or add information on the corresponding [Forum section](https://forum.growingthecommons.org/t/economy). |
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| ===== Related topics ===== | ===== Related topics ===== |
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| - [Blockchain](bloc:blockchain) /* should be a concept */ | - [Blockchain](bloc:blockchain) /* should be a concept */ |
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| * [[user:matslats|Matthew Slater]] of [[creditcommons.org]] | * [[user:matslats|Matthew Slater]] of [[https://creditcommons.org|CreditCommons.org]] |
| * [[user:mrauchs|Michel Rauchs]] | * [[user:mrauchs|Michel Rauchs]] |
| | * [[user:dil|Dil Green]] of [[https://www.mutualcredit.services/|Mutual Credit Services]] |
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