Ethical Banking to Acquire Mass Affluent Consumers
Summary
Banks have been slow to recognize the demand for ethical products; however, consumers are increasingly factoring environmental and social issues into their decision-making.
Synopsis
- Consider the demand for ethical banking and develop well-designed products.
- Acquire an understanding of mass affluent consumers' needs and ways to cater to these.
- How can providers make money from serving mass affluent consumers?
- What should providers consider when serving the mass affluent?
- How does ethical banking attract the mass affluent segment?
Ethical offerings could be deepened to appeal to a greater number of well-off individuals with the resources to commit to high-impact social investment.
For banks, the higher growth among the mass affluent segment provides a significant opportunity. Mass affluent individuals are more likely to have higher balances and require niche products, providing additional revenue opportunities as well as improved scale.
- Executive Summary
- Realizing the potential of the mass affluent through ethical products is a significant opportunity for banks
- Key findings
- Critical success factors
- Introduction
- The mass affluent are low-hanging fruit and providers need to be clear about their propositions
- Ethical products and services will interest the growing mass affluent segment
- Competitive pricing and ethical products must clearly communicate the value they bring to the mass affluent
- Criteria for defining the ethical performance of financial institutions
- Ethical Banking is Beginning to Enter the Mainstream
- Ethical banking provides a chance to stand out from the rest
- Old National Bank is committed to an ethical approach
- HSBC China adheres to international standards in sustainable lending through dedicated Resources
- Cultura Bank treats the economic viability of projects as a prerequisite for financing
- Banks should develop ethical financial products to better serve and capture this niche group
- Ethical investors are likely to be affluent and there is a need to innovate with ethical financial products
- A range of practical, simple, and well-designed ethical products is key
- Ethical finance through pension fund holdings could bring about positive change
- Developing socially responsible investments to attract mass affluents
- Triodos Bank strictly invests in companies with sustainable business models
- P2P lending and other social models can open up a vast pool of opportunities
- Ecology Building Society promotes innovative partnerships for individual entrepreneurs and small businesses
- Banks should move beyond the minimum corporate social responsibility
- Charity Bank provides low-cost loans to social enterprises on terms they can afford
- A relationship-driven approach is important to attract mass affluents
- Triodos Bank follows a community-based approach to make a positive impact
- Ecology Building Society provides an enhanced customer experience to reach tech-savvy and time-constrained customers
- Ethical banking provides a chance to stand out from the rest
- Appendix
- Abbreviations and acronyms
- Bibliography
- Further reading
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