Is ethics a factor when choosing your bank?

A new study suggests that almost half of Britons (44%) are interested in finding out about the ethical credentials of the next financial product or service that they buy.

The national online consumer survey, conducted by Ipsos MORI on behalf of non-profit research organisation EIRIS, was commissioned to explore post credit-crunch attitudes to ethical finance. The survey found that three-quarters of those interested in finding out more about the ethical credentials of a financial product or service said they are likely to take this into consideration when next buying a financial product or service.

Respondents were presented with a list of issues and asked “to what extent do you think banks and financial institutions should prioritise the following issues when deciding who they will or will not lend money to or invest in on a scale of 1-10″ (with 1 being low priority and 10 high priority). Issues emerging as the highest priority were protecting human rights (67% scoring 7 – 10), investing in fair trade (66%), protecting the environment (62%), avoiding arms manufacturers (61%) and tackling climate change (59%). A smaller proportion prioritised the avoidance of companies involved in the manufacturing of alcohol (22% scoring 7 – 10), tobacco (37%) and gambling (38%).

However, awareness of ethical issues was found to be poor. 62% of those surveyed could not name or describe in detail any ethical financial products or services. And even among those that stated they were interested and likely to consider ethical credentials when next choosing a product or service; almost half (48%) of those in this sample could not name or describe in detail any ethical financial products or services.

Mark Robertson, Communications and Development Manager at EIRIS said:

“Our survey provides firm evidence of growing interest in ethical finance, suggesting that the message that it is possible to both make money and make a difference when investing ethically is starting to get through to consumers. But levels of awareness, trust and confidence in ethical finance are low. The industry must respond with greater transparency and provide more information on how saving and investing can make a positive difference.”

“Last week, National Ethical Investment Week highlighted the growing number of green and ethical financial products which are available. EIRIS’ new one-stop-shop consumer website will increase the visibility of ethical financial and provides consumers with all the tools and resources they need to choose ethical options as part of their financial planning.”