New research from ethical Triodos shows that only 3 per cent of savers in the UK feel their bank does enough to explain how their savings are used once they are deposited.
The research asked savers to say how transparent they felt their banks were when it came to their approach to lending out and investing consumer savings deposits.
Triodos’ research also reveals how bank customers feel about their savings potentially being used to support industries traditionally considered controversial. Over half of savers (53 per cent) said they would be concerned if they knew their bank was lending money to exploitive consumer goods production (i.e. sweatshops). A similar number (50 per cent) would be concerned about their bank lending to weapons production, and over a third (34 per cent) have issues with funding intensive animal farming
Over half the respondents, (54 per cent) claimed that if they knew their bank was using their deposits to fund contentious sectors, they would vote with their feet and consider switching providers.
Charles Middleton, Managing Director at Triodos Bank said: “Our research makes it very clear that the majority of savers are genuinely concerned about how their deposits are being used. The banking sector as a whole must acknowledge customers’ interest in the use of money, and properly consider the role that its power and influence can play in acting for positive change. We believe savers have a right to know if their hard earned cash is being used to fund industries such as weapons production or the tobacco industry, only then can they make an educated choice as to where they deposit their money. “
Half of those surveyed (50 per cent) feel there is little information freely available explaining how consumers’ savings are used, while over a quarter (26 per cent) have never had any information from their banks. The public clearly thinks this situation is unacceptable, with 85 per cent of savers agreeing more information should be freely available about what happens to money saved with a bank.
Charles Middleton continued: “UK consumers want and deserve a full understanding of where their money is being invested and lent, so they can make informed decisions about where to deposit their savings. With over three quarters (76 per cent) of bank savers saying they have little to no information from their banks as to where their hard earned savings are being used, they are powerless to do anything. We therefore urge the major banks to make their business models transparent to customers, with clear reporting on all levels of business.”
Source : Triodos
