Only 29% of Young People Trust Financial Institutions to Act Ethically, According to New Research by Fairer Finance Pioneer etika
etika, the purpose-driven, people-first finance provider of fair and ethical finance, has today released the results of a new consumer insights survey* exploring the attitudes of young people in the UK towards the environmental and social impact of financial products.
The survey shows a profound shift in generational attitudes when it comes to what is expected from financial institutions. With only 29% of young people trusting financial institutions to act ethically and 80% of young people looking for ethical endorsements when making purchasing decisions, the survey results serve as a stark warning to financial institutions that are not prioritising ethical programmes and practices.
Other highlights of the survey, which gathered the opinions of people aged 18-35 in the UK, include:
- 78% of young people have considered the social and environmental impacts of financial products;
- 93% of young people would be more likely to choose a financial institution that strictly invested in ethical programmes;
- Only 39% of young people surveyed would be surprised if they found out a financial institution they held a product with was found to be acting unethically;
- 87% of young people agree financial institutions should make information about the social and environmental impacts of financial products more easily available.
Against the backdrop of a difficult economic climate, and with fintech funding falling by a third globally to $63 billion in 2022, these survey results demonstrate that financial companies need to be aware of and be able to respond to changing user demographics and attitudes towards environmental and social issues if they are to be successful.
Commenting on the survey’s core findings, Robert Schuijff, CEO of etika, says: “These survey results serve as a much-needed wake-up call to other financial institutions and finance providers to lead by example and create a more openly ethical financial industry. Companies which only pay lip service to ESG and ignore the growing demands from their customers for socially responsible and ethical ways of doing business will suffer loss of customers, revenues and reputations. At etika, we have always led by example. The name ‘etika’ means ‘ethical’ in several languages and that’s exactly what we want to bring to finance – a responsible and fair approach to lending money. Ultimately, we want to make a positive impact in the world of finance, enable financial inclusion and become a tool for financial wellbeing.”
“We are committed to putting consumer needs and priorities at the heart of our business and have the ability to serve distinct segments and varied demographics. We take these survey results as an indication that we are on the right track with our vision and mission, and will continue to only build partnerships with like-minded businesses which are aligned with our ethical values. We’re also proud to say that we are on our way to becoming a B-Corp in Australia, a clear and widely-recognised endorsement for our people and planet focused-approach to business.”
The release of this survey marks an exciting moment in etika’s growth trajectory, with the company on a mission to make POS finance less complicated and more ethical by becoming a tool for financial wellbeing. etika’s unique business model of being both lender and tech platform provider has already seen the company disrupt the consumer finance space, achieving 150% consumer loan origination growth in 2022, with the aim of doubling this figure by 2024.
Founded in 2012 by a group of technology entrepreneurs, etika currently employs 100 people across three locations worldwide – Manchester in the UK and Sydney and Melbourne in Australia – with this number set to grow as the company continues to extend its services. It works to deliver affordable finance options in a socially responsible way by bringing clarity to credit agreement terms and conditions, with fair merchant fees.
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