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Green, Ethical and Socially Responsible Finance - UK - November 2015

Published By :

Mintel

Published Date : Nov 2015

Category :

Banking

No. of Pages : N/A

The level of influence that ethical considerations have over consumer selection of financial services products and services is minimal, however, this is beginning to change. Younger consumers are more willing to pay extra for products provided by socially responsible companies. Incumbent providers need to pay attention to this gradual shift or risk being outcompeted by new entrants providing alternative, more ethical options to traditional products and services.

Table of Content

Overview

What you need to know
Report definition

Executive Summary

The market
Ethical financial services providers: A question of culture
Investment power
Consumers need convincing
The transformative potential of innovation
Consumers can demand change
The consumer
For financial products, performance is more important than principle
Figure 1: Consumer attitudes towards green and ethical financial products, August 2015
Competition from technology companies
Financial services firms perceived to be some of the least socially responsible
Figure 2: Consumer trust in the behaviour of banks and building societies, August 2015
Repaying the social debt
Figure 3: Consumer attitudes financial services’ firms role in society, August 2015
Consumer trust is built on evidence
Figure 4: Consumer attitudes towards alternative forms of finance and alternative providers, August 2015
What we think

Issues and Insights

Creating a more inclusive economy
The facts
The implications
Payments innovation helps fundraising go digital
The facts
The implications
The social debt of the financial crisis
The facts
The implications

The Market – What You Need to Know

Ethical financial services providers: A question of culture
Investment power
Consumers need convincing
The transformative potential of innovation
Consumers can demand change

Putting Financial Services in an Ethical Context

An ethical economy
An ethical financial sector
Ethical financial services providers

Green, Ethical and Socially Responsible Issues in Financial Services

The role of investing
Divestment
The change potential of pensions
The role of trust
Greater transparency informs decisions
Learning from past mistakes
The role of innovation
Payments innovation: Improving financial inclusion
Competition from new entrants
The power of new money
The role of the consumer
Consumers empowered to make a change
Aligning products with self

The Consumer – What You Need to Know

For financial products, performance is more important than ethics
Financial services firms perceived to be some of the least socially responsible
Competition from technology companies
Repaying the social debt
Consumer trust is built on evidence
Overall trust levels are high

The Ethical Consumer – Socially Responsible Activities

Payments innovation can boost charitable donations
Figure 5: Consumers’ green and ethical activities, August 2015
Consumer engagement in socially responsible activities is high
Figure 6: Number of socially responsible activities engaged in by consumers, August 2015
Healthier finances make it easier to go green
Figure 7: Proportion of consumers who partake in no green and ethical activities, by current financial situation, August 2015

Socially Responsible Companies

37% unable to identify socially responsible companies
Figure 8: Types of companies perceived to be the most and least socially responsible by consumers, August 2015
Building societies seen to be more responsible than banks….
whilst short-term loan companies are at the bottom of the pile

Consumer Trust in the Behaviour of Financial Services Companies

Overall trust levels are high
Figure 9: Consumer trust in the behaviour of banks and building societies, August 2015
Tax avoidance remains a major concern
The divestment movement
Nationwide significantly more trusted
Figure 10: Agreement with statements about trust in main current account providers, by main current account provider, August 2015
Trust levels remain high
Figure 11: Trust in main current account provider to act in a socially responsible manner, by the proportion of consumers who believe that banks are one of the five least socially responsible types of companies, August 2015

Consumer Attitudes towards Green and Ethical Financial Products

For financial products, performance is more important than principle
Figure 12: Consumer attitudes towards green and ethical financial products, August 2015
Socially conscious consumers are more concerned
Figure 13: Agreement with statements about green and ethical financial products, by number of socially responsible activities engaged in, August 2015

Consumer Attitudes towards Transparency

Strategy reports provide little insight for consumers
Figure 14: Consumer attitudes towards transparency, August 2015
Lack of clarity regarding corporate culture causes concern
Figure 15: Consumer attitudes towards corporate culture, August 2015
Consumers want more information

The Role of Financial Services Firms in Society

The social debt of the financial crisis
Figure 16: Consumer attitudes financial services’ firms role in society, August 2015

The Social Responsibilities of Financial Services Firms

For consumers, financial services firms play larger economic role
Figure 17: Social issues relevant to financial services firms, as perceived by consumers, August 2015
Promoting financial responsibility

Challenger Companies and Social Responsibility

Consumer trust is built on evidence
Figure 18: Consumer attitudes towards alternative forms of finance and alternative providers, August 2015
The alternative opportunity
Figure 19: Agreement with statements about the influence of corporate social responsibility on consumer actions, by those that agree with both statements “alternative forms of finance are more socially responsible than traditional forms of finance” and “new entrants to financial services are more socially responsible than existing companies”
The target customer
Figure 20: Green and ethical finance – CHAID – Tree output, August 2015

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