Brits trust and want their banks to make green choices on their behalf
It is estimated that on average every home in the UK will have to reduce 3.6 tonnes of carbon emissions by 2030 to keep us on track for hitting the government’s 2050 Net Zero goal.
But according to new research from leading digital bank Tandem Bank, conducted by consumer advice expert Savings Champion, while over 90% are worried about the impact on the environment, 56% are not actively contributing to its fight.
Instead, the research shows that Brits trust and have an appetite for their bank to lend their savings to directly support positive impacts against climate change (56% of respondents). Almost one in ten of us would also be happy to accept a lower rate if banks did so.
But with Tandem’s previous research showing some customers are more focused on the rising cost of living and not about the effects of climate change, consumers need more support to make an impact.
And with 75% of respondents trusting their bank to make green decisions on their behalf, Tandem Bank has already illustrated this trust in action, supporting customers with over £230 million for green home improvements, which last year alone financed a reduction of 12,000 tonnes in CO2 emissions.
The results also confirm appetite for consumers to look after their savings online, with 67% of respondents already using a savings app. 90% would be inclined to manage their savings via an app as well as online. But despite the introduction of new digital technologies aimed at driving efficiencies and value, savers remain reluctant to embrace Open Banking – with the research showing that 62% of consumers are either uncomfortable with, or unaware of, Open Banking.
Commenting on the survey, Tandem’s new Director of Savings, Ben Mitchell, said:
“This research shows the scale of the opportunity for Tandem in the savings market as we look to support and encourage customers to play their part in driving positive climate change.
“Tandem is on an exciting journey to build a bank focused on helping customers make fairer and greener financial choices. We’re making great progress – including the recent enhancement of our online sales journey – and it’s great to see consumer appetite for us to continue to support consumers make greener and fairer choices, whilst providing market-leading rates for their hard-earned money.”
Tandem currently has a suite of savings products across fixed rate and instant access, several of which sit at the top of the Best Buy tables. Ben Mitchell recently joined Tandem in his new role to accelerate Tandem’s savings proposition, and one of his first initiatives has been to overhaul and enhance Tandem’s online customer experience.
Anna Bowes, Co-Founder of Savings Champion, said: “The results of the survey are really encouraging as they show just how important environmental issues are to people – and this is having a positive impact on how companies, including banks, behave. The more companies that improve their green credentials the better it is for the planet. It’s good to know that we can all have a direct impact on encouraging companies to become genuinely greener.”
Savings Champion is one of the UK’s leading independent experts on cash-based savings, providing savers with free unbiased, guidance on their cash savings. They have created one of the largest databases of savings account information in the UK, monitoring over 5,500 savings accounts and 18,000 interest rates.
Savings Champion has pledged 25% of its future profits and value to environmental charity Restore Our Planet, one of the financial contributors of the David Attenborough film, A Life on Our Planet, as a fundamental value of the business is to have a significant positive impact towards saving the planet.