Where they spend vs. where they bank is creating a consumer intention gap
Consumers increasingly consider sustainability when it comes to individual purchasing decisions, but when it comes to their finances, the lines begin to blur. While banks lend the deposits they gather from their customers, over three-quarters of consumers (78%) are unaware of the specific activities they might be financing through their bank.
And there’s more…
Consumers purchase goods and services from brands that support environmental and/or societal issues they are passionate about. However, this correlates more strongly with products they put on or in their bodies
Four in 5 (82%) Americans buy goods and services from brands that support the environmental and/or societal issues they are passionate about at least some of the time. When these conscious consumers make these choices, more of them typically purchase food or beverage products (73%), clothing (59%) and personal care or beauty products (59%) aligned with their beliefs than any other type of purchase. Fewer do the same when shopping for vehicles (26%), outdoor equipment (25%), banking/financial services (21%), hotel and leisure (19%), or air travel (12%).
Percent of conscious consumers who buy from brands that support issues they care about, by industry
A majority of Americans believe in changing their behavior to address climate change and social issues, but not when it comes to changing their bank.
- 82% of Americans buy goods and services from brands that support their environmental and/or societal issues, and 66% say banks and financial institutions will take the lead in driving social and environmental change in the future, in the absence of government regulation. Yet:
- Millions of Americans are in the dark about what their bank does with their money. Close to 3 in 10 (27%) Americans are unaware that their bank uses customer deposits to finance activities or industries that may not align with their values.
- A majority of Americans don’t think their bank is advancing the causes they care about. Just 24% say their bank is helping address racial inequality and discrimination, and 23% say the same of gender inequity. Only 15% say their bank is reducing the impact of climate change.
- Most consumers say banks aren’t doing enough. 57% feel that banking and financial brands are making too little effort to fight global climate change.
Where you put your money matters—more than most people think
As consumers continue to put an emphasis on making choices that support a more sustainable future, sustainable finance has gained momentum in recent years. Bank of the West commissioned research to better understand how consumers and business leaders are making financial decisions that support their environmental and social values.
Bank of the West’s Money Matters Report–Revealing the Sustainability Intention Gap finds that nearly 4 in 5 (79%) people in the US say they are “passionate” about climate change, and 73% say they’re “passionate about addressing racial inequality and discrimination.” But close to 3 in 10 (27%) Americans are unaware that their bank uses customer deposits to finance activities or industries that may not align with their values.