Are we about to see a second banking crisis in Europe? Cooperative opportunity in recession

Judging by the media coverage in recent days, highlighting the closure and forced merger of a number of Spanish 'Cajas', the increasing nervousness of the markets with regard to the euro, and the potential exposure of European banks to sovereign debt, commentators are expressing real concern that we may be on the verge of a second financial crisis.

Should this concern be realised the likely knock-on impact for businesses is likely to be severe, especially where trading conditions and access to credit have already been badly hit as a result of the recession delivered upon us by the first financial crisis. And once again consumers throughout Europe, already facing austerity measures introduced by their governments in an effort to reduce deficits and keep the markets at bay, will bear the brunt.

In this challenging environment there are substantial opportunities for the cooperative and mutual sector to make advances. Consumer trust is at an all time low, and all the research indicates that consumer trust in business falls in a recession. An April 2009 report, entitled "What Assures Consumers in an Economic Downturn" from the UK-based organisation Accountability suggests that the economic downturn is an opportunity for those companies that can ensure their accountability is embedded in their business model. The research carried out for the report shows that cooperatives are 5 times more trusted than PLCs (investor driven businesses on the stock market), and also that consumer purchasing for ethical products and services is much less likely to be reduced as a result of recession.

All of this offers a clear message to the cooperative and mutual sector: now more than ever cooperatives need act to market their distinct cooperative credentials to a marketplace that is actively seeking providers that deserve their trust, and their business.

Cooperatives are of course a diverse group of organisations: operating in most business sectors, ranging from small artisan worker cooperatives to large consumer cooperatives, how can consumers easily identify cooperatives in a crowded marketplace where they are continuously exposed to complex and sophisticated marketing messages?

The .coop domain offers a perfect solution. Simple, low cost and high impact. Your .coop domain name makes clear in just four characters the distinct nature of your organisation. Every website visit, every email sent, every product label, advertisement, and letterhead used communicates your cooperative status simply and clearly.

And because .coop is a shared or social brand, used by thousands of cooperatives globally, it has the power to reach out to consumers wherever they are in the world.

The internet has proven itself to be an enormously powerful and democratic tool for communication and development. It is by definition a cooperative medium. The .coop domain name, now approaching its tenth birthday, has proven itself to be a robust platform for brand-building, and is available only to cooperative organisations.

Many cooperatives around the world have recognised that .coop is an essential - and highly cost-effective element of their marketing strategy. And for all cooperatives that have yet to register a .coop domain, they are available totally free of charge for the first 12 months. Apply for yours now at www.europe.coop/free/application and we will work with you to get it activated and pointing to your existing website immediately.

The full Accountability report, "What Assures Consumers in an Economic Downturn" was produced in partnership with The Co-operative Group, the world's largest consumer cooperative, and included a foreword by Ed Mayo, then CEO of Consumer Focus, now General Secretary of Co-operatives UK. The report can be downloaded here.