Garden and Green

Banking Credit Crunch Crisis Changes Consumer Attitudes to Savings

7th October, 2008

Amidst turmoil in the financial markets, Triodos Bank has released the findings of a Gfk NOP poll on consumer attitudes towards personal savings and the banking industry.

Following the Northern Rock crisis, 61% of those interviewed who have a banking product, said that they now wanted to know more about how their bank invests their money. Only 21% were not interested.

38%, of the people interviewed, agreed that they if they were looking to open a savings account they would consider a lower rate of interest if they knew that their money was being actively used in a socially and environmentally responsible way. Only 39% would not consider a lower rate of interest.

Just over half of those interviewed, 51%, said that they were more aware now of the impact that their bank, and the businesses it lends to, have on the environment, than they were 5 years ago.

53% of those with banking products agreed that interest rates were once their main concern, now they are interested in other things; such as how their bank is lending their money. This compares to 27% who disagreed.

46% of those interviewed with a savings account did not know what rate of interest they were getting on it.

16-24 year olds are the age group more likely to consider social and environmental factors when choosing to open a bank account, at 57%. While the over 65s, at 27%, were the least likely to consider these factors.

Regionally, a high proportion of Londoners have been affected by the confidence crisis in banking; Following the Northern Rock crisis, 70% of people interviewed wanted to know more about where their money is being spent. The region the least bothered about what banks do with their money is the East Midlands at 50%.
Triodos Bank Launches First Ethical And Transparent Online Savings Account

Triodos Bank, Europe’s leading ethical bank, is launching the most actively ethical online savings account available – The Triodos Online Saver. Savings in the account are guaranteed to finance only businesses and charities that benefit people and the environment. Savers will be told exactly which organisations their money is being lent to.

Following the run on Northern Rock a year ago and the turmoil that followed it in the banking sector, consumers are increasingly concerned about where their banks are investing money and the ethical standards they practice. The Triodos Gfk NOP poll shows that since the credit crunch began, nearly two thirds (61%) of bank customers want to know more about how their bank invests their money. Just over half of the bank customers interviewed (51%) said that they are more aware now of the impact of their bank, and the businesses it lends to, have on the environment, than they were 5 years ago.

This is having an impact on consumers’ investment priorities, with more than half (53%) of consumers agreeing that in the past interest rates were their main concern but that they are now interested in other things; such as how their bank is lending their money. Nearly four in ten (38%) consumers would consider taking a lower interest rate in return for a sound ethical and environmental policy.

“The credit crunch has had a profound impact on consumer confidence in the banking sector. Our research shows that people want more transparency, they want to know that their money is being ethically invested and who with, and they want to know that their savings are secure”.

“The Triodos Online Saver helps people use their money to make a real difference and still receive a healthy rate of interest. We only lend to organisations and projects that create positive environmental and social change, from investing in some of the UK’s biggest renewable energy projects to supporting local charities and small organic producers.” says Triodos Bank’s UK Managing Director, Charles Middleton.

The Triodos Online Saver can be started with as little as £1 and offers a variable rate of interest of 3.56% AER (3.50% gross)*. Savings can be added with a regular standing order, or a lump sum at any time and withdrawals made with a notice period of 33 days. Click here to find out more or complete an application form.

Triodos Bank is protected from the turmoil in the financial markets because of the way it works – lending money to real customers supported by a retail savings base. It has grown more than tenfold in the last ten years and doubled in the last four years. The balance sheet rose by 23% in 2007 to £1.4 billion and net profit rose by 46% in 2007 to £6.6 million. And in the last 12 months, since the run on Northern Rock, money savers deposit with the bank increased by 15% to over £300 million.

“Many high street banks are struggling in this current economic climate,’ continues Middleton. ‘But, 100% of our money is lent responsibly and ethically, and our expansion is not dependent on the fluctuating, volatile, mainstream financial markets. Triodos is proving that a sustainable banking model provides a serious alternative to conventional banks. By putting your money into the Triodos Online Saver you can really make a difference to a sustainable future.”
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