STUDY: CONSUMERS WANT SUSTAINABLE BANKS - BUT KNOW TOO LITTLE!
A recent study by YouGov shows that the majority of consumers are interested in sustainable investments, but often know too little about their bank's portfolio. Around half of those surveyed do not know whether their bank offers sustainable products.
The study also shows that only just under 10% of respondents know and understand their bank's sustainability rating. There still seems to be a large discrepancy between the banks' transparently published data and customers' knowledge. The current survey by YouGov, which was conducted for the third time, also shows that the lack of knowledge on the customer side also reduces the willingness to buy sustainable investments.
It is striking that even after the third survey of the study (previously 2021 & 2019), no significant changes can be seen. For example, respondents in Switzerland, Germany and Austria stagnated at around 55% when it came to their banks' knowledge of sustainable products. The sustainability rating of their own bank also remains completely unknown to 93% of Germans, 92% of Austrians and 89% of Swiss respondents - with no significant change compared to 2021.
Nevertheless, more and more customers are demanding a rethink from banks: banks themselves should act sustainably through their processes and products. In Germany in particular, there has been an increased interest in whether and how banks are making their structures more sustainable.
On the other hand, there is still little personal initiative to buy sustainable investments. On the one hand, only a small proportion of respondents stated that they would change banks simply because another bank has more sustainability in its portfolio. Secondly, only four percent of Germans and Austrians and five percent of Swiss people consider sustainability to be the most important criterion when investing money. Other influencing factors such as a secure return and the cost of buying bonds, funds and shares are of the highest relevance for the majority of respondents. Around half also refuse to forego returns in favor of more sustainable products. (Germany: 54%, Austria: 47% Switzerland: 40%).
The study paid particular attention to the quality of advice on sustainable financial products. The majority of customers who make use of this service feel that they receive good advice. In addition, the majority of customers surveyed consider their bank's sustainable product portfolio to be credible. (Germany: 82%, Austria: 86%, Switzerland: 85%).
Conclusion: More and more customers are demanding a sustainable rethink from their bank. Nevertheless, many customers are not prepared to accept higher costs or additional effort for sustainable investments. Customers' lack of knowledge about their bank's sustainable product portfolio and its sustainability rankings could have an influence on their unwillingness to make sustainable investments. Banks need to catch up on informing their customers here. The consistently positive response from customers to advice on sustainable financial products shows that sustainability advice is worthwhile.
CURENTIS AG supports you in the implementation of your sustainability initiatives. If you have any questions or suggestions, our colleagues from the Sustainable Banking department will be happy to help. More at: www.curentis.com
