Concern about sustainability is influencing the decisions of increasing numbers of investors of all ages. By 2019, consumers whose choice of bank was influenced by its purpose controlled banking revenues worth $300 billion—some 14 percent of total client driven revenues.
These concerns have seen the launch of products that seek to generate positive returns for banks, society, and the environment. For example, by 2018, assets in sustainable investments had reached $30.7 trillion—one third of all assets under management.
Below we highlight five innovative product ideas that banks can consider to meet growing consumer demand for thoughtful, sustainable banking services.
1. Impact account
A current account that assesses the account holder’s carbon footprint, provides advice on budgeting and saving, and keeps the customer up-to-date on community-building initiatives and the work of not-for-profits.
2. Next-generation rewards credit card
A credit card that rewards members for their contributions towards sustainability.
3. Democratization of investments
A digital platform that gives those with limited funds access to a broader range of investment products by pooling their capital.
4. Green deposit account
Deposit accounts for funding bank investments in sustainable initiatives at competitive interest rates.
5. SME banking platform
Online platform for purpose-driven SMEs which, in addition to impact-oriented banking products, provides business tools for implementing and measuring social and economic initiatives, such as carbon footprint offsetting. It can also bring together a community of like-minded companies and connect them across the supplier chain and with consumers.
