In the face of increasing urgency for climate action, coupled with the U.S. Government’s commitment to taking action against climate change in its Inflation Reduction Act, consumer demand around sustainability is shifting. Consequently, there’s an increasing expectation that banks should play a leadership role when it comes to climate change and supporting customers on their sustainability journey.
‘First movers’ who commit to bolder climate action will both future-proof their business and attract the growing segment of conscious consumers.
We attended Money20/20 to spread this message. We spoke to some of America’s biggest banks about carbon footprint integration and met some peers who are on a similar mission.
We also saw some brilliant panel discussions, and while there was a huge amount of topics covered, from NFTs to the Metaverse, we’ve boiled it down to the following top 3 takeaways.
We are in a period of economic instability. From the war in Ukraine to Covid and supply chain issues in China, there are multiple factors contributing to rising inflation and the cost of living crisis.
Many of the conversations at Money20/20 focused on how financial institutions can navigate this uncertainty and build operational, technological and sustainable resilience.
There were also conversations about how banks can support their customers through the crisis. Consumers are being hit hardest by rising prices for items like food, fuel and energy, and many are looking to their banks for help.
Banks which enable their customers to make more conscious spending decisions will be more likely to gain a competitive advantage. So carbon footprint technology integrated into banking apps will be key in helping banks maximise this opportunity.
Open Banking has impacted financial services across industry segments and geographies. The amount of data available through open banking has changed the way banks can tap into consumer needs and build high-quality relationships with their customers.
Open Banking allows financial institutions to collaborate with sustainable fintechs to effectively deliver carbon management products to their customers. Plus champion businesses and customers to lower their carbon footprint.
This also offers banks an opportunity to gain trust among a younger generation of users who increasingly align their financial decisions and spending with their personal values.
Many discussions highlighted the importance of user experience. There is an opportunity for banks to leverage partnerships with fintechs to improve product development and add value to customers. By focusing product ideation and planning on providing customers with value-added, tailored products and services, banks can inspire confidence. For example, Cogo uses personalised insights and techniques like gamification to create a sticky user experience, which ultimately helps banks increase engagement in their apps.
It was brilliant to attend Money20/20 and to help drive the climate conversation. We are so passionate about spreading our mission of creating a fairer and more sustainable world. And we hope that some of the leading US banks start to listen because the potential for positive climate impact is huge.
See you next year!