
Banks and fintech are using technology to help their customers make more climate-friendly choices. They create green loans, help consumers understand the impact of their transactions and point them towards more eco-conscious spending.
Climate awareness may be a draw among young customers in particular: According to Simon-Kucher’s global sustainability study in 2021, 39% of Generation Z and 42% of millennials are willing to pay a premium for continuity. Research and consulting firm Forrester found that Generation Z and millennials who live in cities and have college or advanced degrees are the most likely to pursue green banking products — and make brand-based decisions. in terms of environmental considerations about the company or product. The topic of green banking is also top of mind with course of the Inflation Reduction Act, which incentivizes energy-efficient home upgrades and electric and hybrid vehicle purchases.
Another motive of the banks is to improve the reputation.
“A lot of big banks are getting flak for their investment purchases and support for big oil,” said Ariana-Michele Moore, a retail banking and payments adviser at Aite-Novarica Group. “At the end of the day, banks are best to partner with companies and pass on their solution.”
He prefers tools that help consumers make better decisions from the start, rather than offset after the fact – but it’s still important to raise awareness.
“Deposit banks will be interested in solutions that attract consumers to their apps and websites, so the more functionality they can add, the better,” Moore said. “Banks are supposed to be the trusted source of information. They can help educate consumers to make better decisions.”
Here are five ways banks and fintechs are using technology to help customers live more sustainable lives, as well as a look at what the future holds.