Swing towards ethical banking
Research shows consumers are moving to ethical banking since the banking crisis
UK consumers are turning to ethical banking, savings and investments following the financial crisis of the last twelve months. According to research released recently by Triodos Bank, more than half (55%) of consumers are more likely to choose to save with an ethical bank than a year ago.
- Nine out of ten (89%) say that the financial system has to change to avoid a repeat of the current problems
- 92 per cent want banks to have principles and proper ethical values
- Over half (56%) want their banks to use the money they save to lend to ethical businesses
- Nearly seven out of ten (68%) say that investing in the environment and ethical business sectors makes good business sense
- Two thirds (66%) want to know more about where savings and their money is being used
- In the aftermath of the banking crisis, nearly half of consumers (49%) now think that ethical banks are a safer bet than mainstream banks
Triodos is the UK’s most actively ethical bank and only lends to businesses and charities delivering social, environmental or cultural benefits. The growing popularity of ethical banking has helped the bank to flourish despite the financial crisis. Its balance sheet grew by 25% in 2008 and its number of customers also increased by a quarter (25%) over the year. In the UK, savings held with Triodos Bank increased by £39 million to £315 million.
The research found financial insecurity is encouraging people to save more. The current economic crisis has highlighted the importance of ethical values to many consumers and they are clear about the direction they want banks to take. More than three quarters (78%) of those surveyed think that if banks had been more ethical we would have avoided the current recession. And eight out of ten (79%) feel the way banks put their customers money at risk was unethical.
The Triodos Cash ISA has been rated as the Best Ethical ISA by us. The Triodos Online Cash ISA lets savers enjoy a fair rate of interest of 1.00% tax-free while their money actively supports the best of the UK’s ethical enterprise. Triodos publishes a full list of every organisation it lends to, so savers know exactly where their money is being used.