Banking crisis causes consumers to turn to ethical savings and investments
UK consumers are turning to ethical banking, savings and investments following the financial crisis of the last twelve months. According to research released today by Triodos Bank, consumers are more likely to save with an ethical bank and see real potential in investing in the environmental and ethical sectors.
The research was commissioned by Triodos Bank and conducted by GfK NOP in February among 998 adults across the UK. The research found that 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, despite the VAT cut and falling interest rates. Over half (56%) feel less secure that they have enough savings for the future than they did a year ago, with seven out of ten (69%) saying they are trying to save more and spend less during the recession. Savers have also learned from the lessons of the last year and two thirds (64%) of people now say interest rates are no longer the main thing they are interested in when deciding where to put their savings.
For savers wanting to invest in environmental and ethical organisations, the Triodos Cash ISA has been rated as the Best Ethical ISA by Ethical Consumer Magazine. 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.
Charles Middleton, Managing Director of Triodos Bank UK, says “In these tough times, more and more savers are keen to save with an actively ethical and transparent bank, like Triodos. They can see the financial benefits of investing in the growing environmental and ethical sectors and at the same time want to help organisations making a positive difference”.
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.
Despite government action, many consumers have lost confidence in the financial system. More than half (56%) say they have lost faith in banks, while 46 per cent have lost confidence that their money is safe in the bank since the crisis struck.
(15 March 2009)
For more information, case studies, customer quotes, or interviews with Triodos Bank’s Managing Director, Charles Middleton on how sustainable banking is defying the economic gloom, please contact: Elaine Brass
e-mail: elainebrass@thespringconsultancy.com
tel: 07951 989 588
Notes to editors
Triodos Bank only finances enterprise which create social, environmental or cultural value. Key sectors include organic food and farming, renewable energy, social housing and fair trade. Transparency is a core value: customers are informed about the bank’s lending and can target their savings to particular areas of investment. A range of personal savings accounts is offered and full banking services are available for businesses and charities. Triodos Bank is an independent bank founded in the Netherlands in 1980. Its principles and independence are protected through a special shareholding trust. The UK office opened in 1995 and is based in Bristol.
GfK NOP surveyed 998 respondents aged 16+ via a nationally representative UK telephone omnibus survey. The fieldwork was conducted 20th – 22nd February 2009. Weighting was applied to the data to bring it in line with national profiles.
- Media releases
- Read the latest news from Triodos Bank.