Younger generations are willing to switch providers if their bank doesn’t have strong environmental credentials, according to a study from Tink.
Its survey, which consisted of 2,000 UK consumers, found that 62% of 18-34-year-olds want more information about their carbon footprint so they can reduce their impact on the planet – the national average is 48%.
Younger cohorts of customers also want incentives to do the right thing for the planet, with 56% of 18-34-year-olds looking to be rewarded by their financial provider for lowering their carbon footprint.
Financial services without sustainability offerings could lose business. The survey found that 43% of 18-32-year-olds would switch provider to one that lets them see the environmental impact of purchases on their bank account.
Furthermore, 42% of this age group said they wouldn’t use a financial provider they didn’t regard as environmentally conscious – double the national average of 21%. Of these people, 40% said they only invest their money into companies or funds considered sustainable.
Additionally, 55% of this age range, 55% said they wouldn’t use a financial services provider that held assets or investments in companies which are majorly contributing to climate change.
If a firm has a strong environmental focus, 51% would encourage friends and family to use the provider.
Tink UK & IE Banking Lead Tasha Chouhan said, “As the climate crisis worsens, our latest research makes it clear that consumer expectations for financial institutions are rising. Banks that fail to give full, transparent visibility over environmental impact and carbon footprint may be at risk of alienating a key segment of consumer — in particular, those within the 18-34 age bracket.
“Open banking has a vital role to play in helping financial institutions build a strong sustainability offering for customers. For example, by aggregating, categorising and analysing transactions with open banking, customer data can be linked to carbon footprint analysis and consumers can know the environmental impact of their spending.
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