The business models of banks are pressured by, inter alia, a persistently low interest rate environment, new regulatory pressures, a rapidly expanding digitalisation, and the public perception of being a bad corporate citizen. This paper explores whether impact investing, which refers to investments that intend to generate positive measurable social and ecological return alongside financial return, constitutes a strategic instrument for banks to cope with these developments. Reviewing the literature, the paper discusses heterogeneous impact investing prototypes, and thereupon examines impact analysis which allows to quantify non-financial returns of financial activities through SROI-analysis, standardized key performance indicators, interviews, and case studies. The study implies that impact investing provides incumbent institutions with considerable market opportunities and the chance to strengthen their social responsibility.