Skip to content
CCG Insights

Research Snapshot

  • Research Snapshot

Younger Generations Show Interest in Sustainability

Younger Generations Show Interest in Sustainability

Younger Generations Show Interest in Sustainability

February 17, 2022

By: Kate Drew

Bank Customers and Sustainability

Interest in green banking — which refers broadly to engaging with financial institutions (FIs) and products that align with sustainability principles — is growing, especially among younger generations. And, not only that, but consumers are indicating a willingness to pay more for products that are sustainable or ethical. In fact, according to Simon-Kucher’s Global Sustainability Study 2021, more than a third of consumers surveyed globally said they would pay more for sustainable products across categories, with Generation Z and millennials showing particular inclination.

As customers begin to demand a greater focus on sustainability, we’re starting to see banking providers rise to the occasion in various ways. For example, neobank Aspiration is designed especially for users concerned about how their money is used — it helps users track their climate impact using transaction data, offers features like rounding up spare change that is invested in planting trees, and promises not to use funds in certain areas like fossil fuel projects. The company has amassed over 5 million users and will soon go public via special purpose acquisition company (SPAC). And more traditional organizations are getting in on the action, too: Portugal’s largest bank, Crédito Agrícola, partnered with personal financial management (PFM) specialist Meniga late last year to enable customers to track their carbon footprint through their spending. These kinds of offerings are aimed at satisfying users’ demand for green options, and in doing so, they are opening up a whole new category of products.

Banking institutions should be thinking about what this movement means for them. The demand is clearly there, but what does that mean for your product strategy? What specifically are your customers looking for? And what are they willing to pay for? The data from Simon-Kucher suggests that this isn’t simply an area where banks will have to offer new solutions for free (as has largely been the case with digital features, though there remains opportunity there, as well); rather, it’s an opportunity to create new products and services that can be sold to meet a need. While some features (like rounding up spare change to purchase trees) may not fall squarely into this category, others (like allowing users to track their carbon footprint) very well could. The trick going forward will be finding the right combination of services that drive value and stickiness while increasing revenue for the bank. This will only become more important as younger generations, those most sustainably minded, age and build wealth.

We’re still in early days here, but the evolution of this movement will certainly be an area to watch. It’s likely to be those institutions that start thinking about this now, in a thoughtful way, that will be best positioned to bring interesting propositions to market. This, of course, goes back to understanding your customers and their unique drivers. The first step is to find out what they think and what they want.


Subscribe to CCG Insights.

You Might Like These, Too

A Well Laid Plan

A Well-Laid Plan

Is the US Ready for Open Banking?

Is the US Ready for Open Banking?

Banks Lag on Technical Hiring

Banks Lag on Technical Hiring

Has Blockchain for Banking Finally Arrived?

Has Blockchain for Banking Finally Arrived?

Leaders in Bank Consulting

About CCG Catalyst
Latest Insights
CCG

PHOENIX • NEW YORK • LONDON • SINGAPORE

Phone: +1-480-744-2240  • Contact Us

© 2023 CCG CATALYST CONSULTING. Privacy Policy & Terms of Service.
Request a Call Back
Linkedin Twitter
Subscribe
to our Insights
Subscribe
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
BANK
FINTECH
FUSION
  • About
  • Services
  • Insights
  • Fintech
  • Research
  • Team
  • Contact
  • Press
  • Careers
  • Events
  • RFI / RFP
  • Terms
  • Privacy
Linkedin Twitter Search
Subscribe for Insights

CCG INSIGHTS FOR BANKS, FINTECHS, AND CREDIT UNIONS

The Fed, Real-Time Payments, Alexa and Apple P2P, Part of Payment Revolution
  • Weekly digest of what's new
  • New research snapshots
  • Exclusive access to banking and fintech research
  • Industry news
  • Invitations to webinars and webcasts