Would you choose your bank again?
Britain is undergoing a shift in values when it comes to choosing who they are banking with, placing more importance on ethics and integrity, according to research from leading ethical bank Triodos Bank.
The top factors which would influence Britons’ choice of bank now, compared to when they joined their existing bank, are that the bank does not pay big banker bonuses (77%), offers good interest rates (62%), and acts with honesty and integrity (58%). In addition, almost half of Brits (49%) said a bank’s ethical practice would be more important to them now than when they first opened their bank account.
Savers in the dark but with strong views
Triodos Bank’s research also revealed just over a third of savers (35%) in the UK have no idea what their bank does with their money once deposited into the bank. Yet, over a third (38%) of people would like to know what their money is being used for, with 74% of savers who are concerned about how banks use their money even saying that if they knew their bank was using their deposits to fund contentious sectors, they would vote with their feet and would consider switching providers.
The research suggests that banks are failing to keep their customers informed in this area, with 60% of savers say they have received little or no information regarding what their bank does with their savings.
Which of the following activities would cause you concern if your bank was using your money in that way?
1. Human trafficking (75%)
2. Forced/ child labour (73%)
3. Pornography (59%)
4. Exploitative consumer goods production (ie sweatshops) (57%)
5. Repressive government schemes (56%)
6. Weapons (55%)
7. Animal testing (50%)
8. Intensive animal farming (43%)
9. Tobacco (37%)
10. Unsecured lending (ie credit cards, etc) (27%)
Huw Davies, head of personal banking at Triodos Bank commented: “Our research is a clear call from consumers to the financial services sector to make more fundamental changes, and do so more quickly, if they are serious about getting back in touch with society and regaining consumer trust. There is a definite message here that the public wants a shift in what banks do and how they do it, which requires a deep-seated change in culture and values.
“We talk a lot about the need for new and different banks in the UK; this is important, but less so than the need for new bankers who are motivated not only by personal wealth, but by serving society and doing the right thing.
“With the end of the tax year coming closer, now is a key time for many savers to look at their savings and investments and to make changes where needed. At Triodos Bank, our savers will always know exactly how we are using their money, and that it is only financing organisations delivering a positive environmental, social or cultural impact. Saving in a Triodos Bank ISA not only means you get a decent financial return, but also peace of mind that the money you are saving is making a positive difference to people, society, and the environment.”
Customers can see exactly how their money is being used, as Triodos publishes details of every organisation it lends money to on its website. These include financing the solar PV installation at organic dairy company Yeo Valley’s headquarters, Hugh Fearnley-Whittingstall’s River Cottage, green power company Ecotricity and more than 1,000 other sustainable enterprises. Triodos Bank is the UK’s only commercial bank to publish this information for all its customers.
Triodos Bank offers a range of savings accounts, including a choice of cash ISAs and a Jr ISA. It recently launched a stocks and shares ISA, enabling investment in socially and environmentally responsible stock market listed companies.