Five ways to reimagine green banking

Five use cases for green banking

Reading Time: 2 minutes

 

In the battle for customer attention, banks are losing the engagement game. The less time customers spend in your digital banking app, the fewer touchpoints you have with your users. That means selling new products becomes harder the less you know your customers. Luckily, there’s a solution to make banking more dynamic, effective – and most importantly – environmentally friendly: green banking.

What is green banking? Green banking is shaping the future of banking by providing a win-win-win launchpad for a new-generation of products that benefit banks, customers and the environment.

Let‘s take a look at some use cases of green banking & finance in action:

 

  1. Green bank accounts

    • It’s time to rethink checking and savings. A green bank account can serve to empower customers with the knowledge they need to take climate action:
      1. Use payment transactions to empower customers with personalized environmental impact information, e.g., carbon footprints;
      2. Offer carbon neutral accounts with a monthly contribution to offset the average footprint;
      3. Develop green deposit accounts reserved for sustainable bank investment.carbon footprinting for green banking
  2. Climate credit card & loyalty program

    • A new generation of credit card is here. A more engaging experience awaits green card users that can use reward points to reduce their footprint and support environmental projects all over the world:
      1. Enhance credit card transactions with environmental impact context;
      2. Provide easy access to certified carbon offsetting projects that compensate individual footprints;
      3. Launch next-level green loyalty & reward programs.
  3. ESG Platform

    • Let’s democratize purpose-driven investing. Giving everyone access to the benefits of ESG investing by reducing the barriers of entry could generate an estimated $40-50 billion by introducing millions of new customers to green financial markets:
      1. Streamline the future of investing through an ESG investing platform;
      2. Capitalize on growing investor and consumer demand for green finance;
      3. Generate new revenue streams and positive impact through facilitating responsible investments.ESG investment platform
  4. SME service platform

    • Match businesses with the tools of the future. A platform, where financial performance and environmental impact information live in harmony, serves to connect SMEs with the relevant partners and products for sustainability:
      1. Equip businesses with the tools to measure financial and sustainability performance;
      2. Introduce offsetting programs for business travel;
      3. Connect like-minded businesses looking for sustainable products and services.Offsetting for Business Travel
  5. White Label

    • Integrate comprehensive, off-the-self solutions. Give your customers more of what they want – at the speed they’ve come to expect. With a White Label solution, you can increase customer engagement and loyalty by being ahead of  the curve and standing out  from  your  competitors:
      1. Equip customers with a full suite of sustainability products from footprint calculations to sustainability insights to offsetting and ESG investing
      2. Easy-to-implement product with a short go-to-market timeline
      3. Your value proposition infused with a fully-brandable and secure green solution

Green banking is set to transform the role of banking in the coming years. Growing numbers of customers, investors, and employees are looking to the banking and financial services sector to take up leadership in the fight against climate change. The question remains: will banks and financial institutions sieze green banking as an opportunity to meet customer demand and have a meaningful impact?

*based on a McKinsey & Company piece

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