The construction of democracy in cooperative banks

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Against a backdrop of fierce competition and a desire to set themselves apart, cooperative banks are looking to showcase their original model, including the principle of democratic control by members. This article examines how cooperative bank members wish democracy to be built in these institutions today, and what forms of participation would meet their expectations in terms of the type of democracy they aspire to. The survey of 859 members of a French bank shows that young working people, as well as farmers, artisans, retailers, and business leaders, tend to express a desire for direct democracy, since it offers them the opportunity to get involved in strategic planning, participate in committees, and provide their expertise. Representative democracy generally meets the expectations of older members, who are satisfied with delegating strategic decisions to directors and are reluctant to be directly involved. A third group expects democracy in their bank to be exercised differently depending on the topic: by their representatives for strategic issues and their participation for governance-related issues. Members of this group are also willing to participate in committees or working groups. The results obtained enable us to propose a model of member expectations that contributes to the academic literature on democracy in cooperatives. They also provide managers of cooperative banks with a better understanding of what their members want in terms of democracy. Banks should adjust the cooperative model to meet current expectations, with forms of participation tailored to their members’ profiles.