Personal Finance | September 8, 2022

Young savers, if not Republican governors, want their banks out of fossil fuels

Dennis Price
ImpactAlpha Editor

Dennis Price

ImpactAlpha, Sept. 8 – Politicians that seek to ban ESG investing are up against some serious headwinds from the next generation.

“Banking with Impact,” a study of 1,000 adult consumers from creative agency Compose[d] suggests that combating climate change, investing with purpose, and environmental, social and governance factors are increasingly critical to Millennials and Gen Z savers.

Among the findings: More than 80% of those surveyed want the ability to opt-out of investments that contribute to climate change. An even higher share want their banking and investments to have a positive impact on people and the planet. And more than 90% believe banks have a responsibility to disclose their investment activity in a transparent manner. Preferences for Millennials and Gen Z savers tended to be even stronger in each finding.

Connect the dots

Awareness and preference for financial responsibility is not yet translating to action, according to the survey. More than half of Gen Z consumers bank where their parents bank; more than 70% of all savers value high interest rates on savings accounts above all.

More than half, however, prefer that a bank “aligns with my personal values and invests accordingly.”

Banks that “share the brand values and corporate social responsibility objectives in consumer-facing materials will win,” says Compose[d]’s Jason Parkin, “ensuring customers feel confident in where they choose to put their money.”