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Banks should use the COVID-19 lockdown to refocus their strategies on sustainability including environmental, social, and governance (ESG), a recent study showed.
According to data and analytics company GlobalData, the rise of millennial and Gen-Z buying power in financial services is the largest driver of sustainability and will soon comprise 75 percent of all accounts and purchases.
“To align with their own beliefs, consumers are demanding faster, cheaper, more convenient ways of managing their finances as they want the brands of the products they buy,” Katherine Long, Retail Banking Analyst at GlobalData said.
GlobalData’s 2020 Banking and Payments survey revealed that respondents aged between 18 to 34 are 40 percent more likely on average to say that ‘supporting environmental and ethical causes’ is the most important attribute in a financial services firm.
According to GlobalData’s ESG thematic research, one of the top opportunities that ESG practices can provide financial services is the fund industry.
The data and analytics company said that ethical funds outperformed non-ethical funds over the course of 2019, the last three years, and the last five years.
(Writing by Gerard Aoun; editing by Seban Scaria)
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