SAN FRANCISCO-Planning to build some of your credit union's marketing around being "green" in 2009? A new study shows that consumers have more of an interest in "thinking" green than actually "acting" green.
The study from Javelin Research has found that although most consumers expressed an interest in adopting green banking behaviors, three out of four consumers still receive paper statements. According to Javelin, if every U.S. household stopped receiving paper bills and statements, 687,000 tons of paper would be saved every year - enough to circle the Earth 239 times.
In addition to big banks, among the institutions cited in the new report are Credit Union One of Oklahoma, Sound CU, Star One CU, Technology Credit Union, and Vancouver City Savings CU.
"Green banking clearly has a direct, positive effect on the environment, but the benefits go much further, reaching into security and cost," said Jim Van Dyke, president of Javelin Strategy & Research. "Banks will save money every time a customer switches to electronic statements and transactions, and consumers significantly reduce their risk of becoming a victim of identity fraud by going paperless and using online banking services-everybody wins."
While environmental issues have grown in importance with consumers, green banking habits have yet to take hold, the report suggests, largely because consumers are not aware of how they can make a difference and financial institutions have yet to find incentives that compel consumers to participate.
"Most consumers want to do the right thing, but if the process appears confusing or inconvenient, they simply aren't going to bother changing their banking habits," said Mark Schwanhausser, research analyst at Javelin Strategy & Research. "In many ways, it's up to banks to influence consumers. They must offer tangible, compelling 'green' options and make them as simple as screwing in a CFL bulb."
Javelin said its researchers believe availability, accessibility and complexity are the central challenges stalling the adoption of green banking behavior. Financial institutions must focus on products and promotions that speak directly to environmentally conscious consumers, including "green audit" calculators to help consumers compute the environmental impact of their banking behavior, a one-stop paper statement shut-off option for all accounts and green banking marketing campaigns that reward customers for eco-friendly practices.
5 'Green' Recommendations
For consumers seeking to make their banking habits "greener," Javelin Strategy & Research offered the following five recommendations for members:
1. Turn off paper statements. "This is the easiest and most widely available way to make an immediate, substantial impact on your carbon footprint and lower your risk of identity fraud."
2. Switch to direct deposit. "Cut off the paper trail that goes along with depositing paychecks. Bonus: In most cases, your money is deposited into your account earlier through direct deposit."
3. Start using online banking. "Checking your accounts online is not only convenient, but you can also significantly reduce waste by managing and paying bills online. Bonus: Save money on postage and reduce the possibility of identity fraud."
4. Skip the receipt and deposit envelope. "Don't take a receipt and instead, check your accounts online later or make a note of it immediately in your checkbook. Recently, many banks have installed ATMs that don't require envelopes for deposits."
5. Try mobile banking. "By signing up for mobile banking, you're likely to cut down on trips to the ATM or local branch, which reduces pollution and saves you money on gas."
Key Findings
Javelin has found:
* Three out of four consumers receive paper statements.
* 34% of consumers said they switched to e-statements to reduce their impact on the environment.
* 43% of consumers said they are more likely to do business with companies they perceive to be green.
* 1-in-5 consumers (22%) said green initiatives cement the bond with an FI.
* 60% of "green bankers," or consumers who say environmental impact is "extremely important" in purchasing and banking decisions, are women.
* 64% of "skeptics," or those "very less likely" to be more loyal to a bank because it's green, are men.
