The demand for ethical finance and ethically run businesses has never been greater. Supporting this, etika, the ethical finance provider, has found that 80 per cent of young people look for ethical endorsements when making purchasing decisions.
In addition to this, the etika consumer insights survey further explores the attitudes of young people in the UK towards the environmental and social impact of financial products. There has been a generational shift in attitudes according to the ethical finance provider. There is little trust among young people that financial institutions will act ethically. In fact, only 29 per cent believe them.
A warning for those not prioritising ethical programmes and practices
Other highlights of the survey, which gathered the opinions of people aged 18-35 in the UK, include:
- Seventy-eight per cent of young people have considered the social and environmental impacts of financial products
- Ninety-three per cent of young people would be more likely to choose a financial institution that strictly invested in ethical programmes
- The survey revealed that only 39 percent of young people would express surprise upon discovering unethical behavior by a financial institution with which they held a product.
- Eighty-seven per cent of young people agree financial institutions should make information about the social and environmental impacts of products more readily available
The fintech industry has had a rough H1’23, as fintech funding fell by nearly a third globally to $63billion in 2022. In light of this, organisations must respond to the demands of the new demographics. If they don’t adjust their offerings, competitors will and they will lose customers.
A financial wake-up call
Commenting on the survey’s core findings, Robert Schuijff, CEO of etika, says: “These survey results serve as a much-needed wake-up call to other financial institutions and finance providers to lead by example and create a more openly ethical financial industry. Companies which only pay lip service to ESG and ignore the growing demands from their customers for socially responsible and ethical ways of doing business will suffer loss of customers, revenues and reputations.
“At etika, we have always led by example. The name ‘etika’ means ‘ethical’ in several languages and that’s exactly what we want to bring to finance – a responsible and fair approach to lending money. Ultimately, we want to make a positive impact in the world of finance, enable financial inclusion and become a tool for financial wellbeing.”
“We are committed to putting consumer needs and priorities at the heart of our business and have the ability to serve distinct segments and varied demographics. We take these survey results as an indication that we are on the right track with our vision and mission, and will continue only to build partnerships with like-minded businesses which are aligned with our ethical values. We’re also proud to say that we are on our way to becoming a B-Corp in Australia, a clear and widely-recognised endorsement for our people and planet focused-approach to business.”