| Type | Alternate timeline |
| Focus | Long-term sustainability and societal well-being |
| Regulations | Strong regulations • Transparency policies • Anti-fraud measures • Stability protection |
| Funding model | Risk-adjusted |
| Financial model | Nonprofit/cooperative banks |
| Investment market | Stewardship market |
In this alternate timeline, the financial industry adopts a different economic model centered on long-term sustainability and societal well-being rather than short-term profits. Key distinctions impacting the sector include:
In the early 20th century, financial leaders and politicians realized that a system centered on short-term profits was contributing to economic instability, worsening societal inequality, and creating unsustainable financial practices. To combat these trends, they sought to modify monetary institutions to promote long-term responsibility and societal benefits.
Banks and financial institutions in this alternate timeline are more likely to operate as nonprofit or cooperative entities rather than profit-driven corporations. The primary goal of these organizations is to improve social welfare and create economic stability, rather than maximizing profits. This shift results in a more equitable distribution of wealth and encourages sustainable financial practices.
This timeline abandons the traditional interest rate system, which encourages risky and volatile lending practices. In its place is a risk-adjusted funding model that rewards responsible lending, prioritizing the long-term needs of borrowers and the greater good. Institutions that lend in a responsible, sustainable manner are granted more favorable funding terms, while those that pursue high-risk lending are penalized.
The stock market of our timeline is replaced in this alternate reality with a stewardship market. Investors in the stewardship market focus on long-term systemic impact and sustainable outcomes when making investment decisions, rather than pursuing short-term gains. Companies are incentivized to prioritize long-term growth and stability, ensuring a healthier and more resilient financial ecosystem.
Regulations and policies in this timeline are stronger and more comprehensive, aimed at ensuring transparency, preventing fraud, and protecting the stability of the financial system. The greatly improved regulatory environment discourages fraudulent activity, which helps maintain the integrity and trustworthiness of the financial sector. This increased stability and trust results in a more resilient and reliable financial system.
Overall, this alternate timeline promotes a financial industry driven by long-term thinking, sustainability, and societal well-being. Nonprofits and cooperatives form the backbone of this financial ecosystem, with a focus on responsible lending and investment, reinforced by a robust regulatory framework.
