Enabling customers to understand the impact they have on the environment represents a sizable opportunity for banks to improve digital engagement and upsell green products. An accurate and convenient carbon footprint calculator can open up these benefits.
There is an ever-growing number of consumers who put environmental concerns at the centre of their life choices and purchase decisions. In an effort to reduce their carbon footprint, these consumers are keen to understand the impact they have on the environment and then take positive action.
Yet, many people lack the tools to understand and measure the impact of their actions. But banks are in a unique position to help in this area, with the ability to show consumers an estimate of their overall carbon footprint based on their spending profile.
Then, by providing some understanding of the specific aspects of their spending that are the most detrimental to the environment, consumers can use this information to alter their spending behaviour in ways that will boost their personal savings and help protect the planet.
It’s a sizable opportunity for banks for a number of reasons, including:
- Serve a clear customer demand – There is a fast-growing need in the market for this service – more than half of EU consumers (57%) base purchasing decisions on environmental concerns, research shows.
- Increase high-quality digital engagement – Give customers a new and valid reason to log-in and engage with your digital channels.
- Grow sales of green products – Make eco-friendly banking product recommendations to help consumers minimize their carbon footprint, as part of the digital banking journey.
- Strengthen brand & build long-lasting loyalty – Take a stand with the climate and make ESG a business imperative – for you and your customers.
There’s nothing stopping consumers from using an online carbon calculator that enables them to estimate their footprint. However, these calculators require users to manually input their information, and few people are motivated to take action in this way.
By integrating carbon calculation into their services, banks can turn what is currently a far-from-perfect means of gauging environmental footprint into a convenient solution.
Moreover, with services like Meniga’s Carbon Insight, these estimates follow internationally recognized data and standards.
Customers gain a real-time estimate which they can track over time. This raises awareness of their environmental impact and points them towards ways they can improve – for instance, by acquiring green banking products.
57% of consumers in the EU base purchasing decisions on environmental concerns.
Meniga Carbon Insight provides the best estimate of consumers’ transaction footprints, using data points such as transaction amount, spending category, and more.
Customer input – along with demographic data and other external features – are used to increase the accuracy of the estimate, while the system makes adjustments for airline flights, public transportation and other such expenses to maintain a reliable carbon footprint calculation.
Backed by data and the latest in environmental science, Meniga Carbon Insight makes it easy for you to help customers reduce their footprint – delivering benefits for the planet and the relationship you have with your customers.
To understand more about how Carbon Insight works, read our paper on Carbon Conscious Banking.