Eco-friendly banking is a trend that is only just catching fire in the industry – but will be one that all banks must get on board within due course. Moving first, in the right way, promises to bring significant benefits.
Consumers are still getting their heads around exactly what eco-friendly banking looks like. However, as they begin to assess every aspect of their lives through the lens of climate change, it won’t be long before their understanding is fully formed.
Many are already pushing for more eco-friendly banking: our Global Consumer Survey 2021 found 63% of consumers want their bank to help them offset their carbon footprint. Given banks’ unique position in aggregating consumer purchases, providing a carbon calculation is an obvious first step towards eco-friendly banking.
As time goes on, however, there will be an expectation to go further and offer green banking products and offsetting services. Carbon conscious consumers will want to know exactly how their bank is using their money.
In addition to meeting the demands of carbon conscious consumers, eco-friendly banking also helps banks to…
- Meet regulation – Banks are under rising regulatory pressure to protect themselves from the impact of climate change and to align with the global sustainability agenda.
- Improve financial performance – Research shows that the pursuit of sustainability priorities leads to stronger financial performance.
- Improve brand reputation – Those banks that are leaders in the sustainability space will strengthen their reputations, especially among Gen Z and Millennials.
Of course, it’s also just the right thing to do for the planet, with climate change bringing serious consequences such as increased natural disasters and the loss of habitats and biodiversity.
63% of consumers want their bank to help them offset their carbon footprint.
More than anything else, eco-friendly banking communicates to consumers that you’re a bank that is listening to them and that you prioritise their needs and those of the planet.
With still only a handful of banks to get fully on board with eco-friendly banking, it can be a differentiator that helps attract new customers and retain existing ones. An overwhelming 87% of bankers we surveyed believe carbon footprinting will increase loyalty.
Ultimately, you’re empowering your customers to make positive choices that will limit their impact on the environment.
In providing an element of choice over their investments, you’re also giving consumers new reasons to engage. From there, you can build customer journeys from carbon footprint to eco-friendly financial products.
Meniga’s Carbon Insight tool can easily integrate with your existing digital channels to provide your customers with an accurate estimate of their carbon footprint based on their spending patterns. It then empowers them to act via internationally recognized offsetting programs.
By using bank carbon footprint services, customers can learn about their environmental impact, change their behavior, purchase your bank’s green products, or offset their carbon emissions.
For many consumers, it will be their first step in the direction of eco-friendly banking. The rich, goal-driven user experience of Carbon Insight helps keep them engaged for the long term – it’s up to you to determine how far you want to take them on their eco-friendly banking journey. Find out more today.