After another record-breaking hot summer and an alarming IPCC report, consumers are increasingly waking up to the reality of the climate crisis. Many are also realising the responsibility they have to change their behaviour and help mitigate the effects of climate change. Research shows that 80% of consumers are willing to change their lifestyles to combat the effects of global warming.
Cogo recently teamed up with the Behavioural Insights Team to survey 2,000 banking app users to understand how they feel about their bank helping them take climate action and whether there are any differences between ages, genders, ethnicities and levels of carbon literacy. Our research showed that 9 in 10 people consider the environment when choosing what to buy. Reportedly, customers consider their environmental impact most when shopping for food, fuel, flights, clothes and household goods. This insight supports the findings from the Global Sustainability Study (2021) which reports that 85% of consumers have shifted their buying behaviour to become more sustainable in the past five years. And this number is likely going to increase in the next ten years as people become increasingly aware of the climate crisis. Banks that take a proactive approach and develop a green banking strategy will attract and engage the growing conscious consumer segment.
This movement towards conscious consumerism does not just affect commerce. Customers want to know about the environmental impact of their banks too. Our survey shows that 7 in 10 participants want to see their bank taking action to reduce their own environmental impact, mostly through reducing the carbon impact of their operations (76%) and by investing in businesses with a low environmental impact (73%).
There is an opportunity for banks to support their customers and help them reduce their carbon footprint by prioritising sustainable initiatives and by transparently communicating progress towards science-based targets. Thanks to the transactional data they hold, banks can help people understand the carbon emissions associated with their spending and help them adopt more sustainable behaviours. And the introduction of open banking means financial institutions can collaborate with sustainable fintechs to effectively deliver carbon management products to their customers.
Digital banking innovation examples include chatbots, biometric authentication, and virtual assistants, which can enhance customer engagement and convenience.
Chatbots: Chatbots are virtual assistants that use natural language processing and AI algorithms to communicate with customers in real-time. They can assist customers with common queries, provide personalized recommendations, and automate tasks such as fund transfers and bill payments. Chatbots can enhance customer engagement by providing 24/7 support and reducing response time.
Biometric authentication: Biometric authentication uses physical characteristics such as facial recognition, fingerprints, and voice recognition to verify a customer's identity. It eliminates the need for passwords and PINs, making banking more convenient and secure. Biometric authentication can improve customer experience by reducing the time taken to complete transactions and minimizing the risk of fraud.
Virtual assistants: Virtual assistants are AI-powered tools that can handle a variety of tasks, such as scheduling appointments, providing financial advice, and offering investment recommendations. They can provide personalized solutions to customers' financial needs, improving engagement and convenience.
Overall, these digital banking innovations can provide customers with more efficient and personalized experiences, improving customer satisfaction and loyalty.
Download the free Cogo BIT Report to learn more about how banks can align their products with changing customer demands.
ARTICLE WRITTEN BY: COGO
This extract was taken from the Cogo BIT Report. To download the full report, please click here.
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