Over two thirds 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 report surveyed over 6,000 consumers on their attitudes to green finance globally. The key takeaway, according to Mambu, was that whilst consumers are in favour of greener financial options, they 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.
The survey also showed 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. Meanwhile, over half (55%) would like a say on the types of green financial products and services their financial institution develops in future.
When it comes to the most in-demand green financial products, consumers cited sustainable credit and debit cards (45%); green savings accounts and bonds (42%); green loans (31%) and green mortgages (31%) among the offerings they’d most like to see.
According to Mambu, the findings also demonstrated 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.
Anna Krotova, director of sustainability at 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.”
According to a study from ERM, institutional investors are spending an average of $1.3m annually to collect, analyse and report climate data to inform their investment decisions. The report also found that on average corporate issuers spend $533,000 annually on climate-related disclosures.
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