Sustainability Leadership Perspective: BanksDownload a PDF version of this report or return to Mapping the Future of Green Innovation
Banks By 2020, green practices will influence 66% of consumers when they choose a financial service provider. (source: April 2009 Mintel forecast estimates that in 2020, two thirds or “66% of U.S. consumers will be classified as True or Light Greens, meaning that green practices will play a role in their choice of financial services providers” — up from 51% in 2010). We believe those who are ahead in complying with earth-friendly legislation and satisfying consumer preference will fulfill the unmet needs in the market faster than the competition. They will likely drive profit to the bottom line and take market share from others. Take CitiGroup for example. CitiGroup has an actual sustainability score of 67 — the highest score in the banking sector. Yet CitiGroup is rated 6th out of 12 by consumers in terms of sustainability with a perceived score of 49. This gap indicates that, while CitiGroup is taking the initiative to go eco-friendly, their efforts are not readily recognized by consumers (because those efforts are not necessarily customer facing). For those with a lower actual score, like Capital One (12), and higher perceived score (57), we think the opportunity to infuse more sustainability practices into innovative products, services and business models is just as large. We believe the gap in scores doesn’t represent a glaring problem for most banks, yet. Currently, it represents opportunity.
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