INTELLIGENT GREEN TECHNOLOGY
Over two thirds of global consumers want their bank to become more sustainable in future
O ver two thirds ( 67 %) of consumers want their bank or financial institution to become more sustainable in future , according to a new report from cloud banking platform Mambu .
The Is the grass greener on the sustainable side ? report surveyed over 6,000 consumers on their attitudes to green finance globally . It reveals that , while the majority are in favour of greener financial options , consumers have little trust in the industry ’ s sustainability credentials . Nearly half ( 48 %) stated that access to green financial services has become more important to them in the last five years , yet more than two thirds ( 67 %) of global consumers believe that their current financial institution is guilty of greenwashing .
Just two in five ( 42 %) consumers think that their current bank or financial institution clearly communicates its sustainability commitments , and only 37 % know what climate pledges they have publicly announced or committed to .
There ’ s also confusion around exactly what ‘ green finance ’ is , as over a third ( 35 %) of consumers don ’ t fully understand the difference between green finance ( a product that has been designed to protect the environment or to manage the impacts of finance and investments on the environment ) and ethical finance ( finance which takes into account not only financial returns but also environmental , social and governance factors ), indicating a need for greater education and communication within the industry .
Adoption of green finance is far from mainstream . Just over one in four ( 26 %) consumers have knowingly made use of a sustainable banking product or service . But , of those that have , the vast majority ( 84 %) were more satisfied with these services than traditional banking products .
The survey shows that consumers want banks to be more transparent and have greater power in holding them to account . Nearly three fifths ( 58 %) would like more control over how and where their money is invested – to align with their personal values .
Anna Krotova , Director of Sustainability , Mambu , said : “ Our research shows that consumers are increasingly looking for ways to make greener financial decisions , but remain sceptical about how strongly banks are committed to the sustainability agenda . They want to play a more active role in making green finance the future of finance , and there ’ s a huge opportunity for forward-thinking players to get ahead in this transition . Mambu empowers financial institutions to do just that and build sustainable financial products quickly and cost-effectively to meet consumer demands .” Specifically , 42 % of consumers would welcome incentives and loyalty programmes that reward them for making greener financial decisions . The same percentage would like to hear more about sustainability commitments during the onboarding process for financial products and services .
The findings also demonstrate the green finance opportunity for banks , as nearly half ( 49 %) of consumers say they would consider switching to a provider with a stronger commitment to sustainability , yet less than a third ( 32 %) are willing to pay a premium in order to do so . •
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