Banks under unprecedented pressure to implement carbon impact tracking

Three-quarters of mobile banking customers in the UK want a comprehensive view of the carbon impact of their spending; according to new research from New Zealand-based carbon management solutions provider Cogo.

The company’s latest research, developed with the Behavioral Insights team, surveyed 2,007 mobile banking users in the UK to investigate customers’ attitudes towards banks and encourage them to reduce their environmental impact.

The results show that there is a growing need to properly understand the environmental impact of spending.

Emma Kisby, CEO, Cogo EMEAEmma Kisby, CEO, Cogo EMEA

Emma Kisby, CEO of Cogo EMEA, acknowledged the unique position of banks to positively impact and help reverse the climate crisis, speaking about the company’s findings.

“Providing customers with green banking solutions can make a big difference,” she explained. “Their influence means that a large number of people have access to carbon footprint management capabilities through providers they already interact with on a daily basis.”

The competitive advantage of carbon management

According to the company’s survey, 75% of mobile banking users want to know the carbon impact of their spending.

Additionally, 48% of respondents said they support greener purchasing options for banks, and banks are supported.

When asked if they would like information on carbon spending from banks, 57% said yes, thus presenting a great opportunity for banks to provide this support.

NatWest, a major UK bank, offers Cogo’s carbon footprint management capabilities in its mobile banking app.

When the partnership launched in July 2021, the bank’s retail banking chief executive, David Lindberg, labelled the integration as “making it easy for everyone to live and live in a greener way. Consume, a very important first step using their money power to influence change.”

As Cogo’s research shows, the trend toward conscious consumerism affects more than just banking products and services.

While reducing their personal carbon footprint, customers increasingly want to see their banks take action to reduce their environmental impact, the report found.

76% would like to see banks reduce the carbon footprint of their operations, while 73% would like to see banks invest in businesses that have a lower environmental impact.

Looking back at this statistic, Kisby continued: “As the playing field for big banks flattens, the added benefit of helping clients manage their environmental impact could make a big difference.

“A new generation, savvy green generation has opened their first personal and business accounts. Banks that offer green solutions that customers want will be able to reach a larger base of potential retail banking customers.”

Expand the solution

As consumer demand for carbon footprint knowledge is expected to grow, such information will naturally become a unique offering alongside other major banking services.

Environmental, social and governance (ESG) insights will become commonplace.

Cogo’s report recommends partnering with startup solutions as a means for banks to scale more efficiently.

It goes on to explain that “proven technologies and methodologies can be built quickly and attract customers who expect more from their banks”.

In response to its own findings, the company recently confirmed the launch of its financial services partner model.

The model, in partnership with NatWest, TSB and most recently the Hungarian Bank OTP, is designed to help mobile banking customers measure their impact and carbon footprint.

Integrating this information will allow banks to offer clients money management tools that incorporate environmental impacts.

The company reports that the model is on track to provide more than 3 million retail banking customers with carbon footprint tracking in their everyday banking experience by the end of this year.

Source of information: Compiled from THEFINTECHTIMES by 0x information.The copyright belongs to the author Tyler Pathe, and may not be reproduced without permission

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