PA’s latest report on financial services and sustainability is extensively covered in an article in Auto Retail Bulletin. The article explains that there is a pent-up demand for financial products and services that have a positive and demonstratable social and environment impact.
The article quotes Jason Hill, one of PA’s financial services experts who says: “There are three core initiatives businesses must commit to pursuing to have the greatest impact: build credibility, educate and innovate. It will take investment and ingenuity, but it is critical the industry pivots, now.”
The article looks at the fact that consumers are currently facing a critical knowledge gap which should serve as a wake-up call to financial services providers to accelerate their efforts to both educate and innovate around ethical and sustainable finance options.
The article goes on to draw on PA’s research which says that as well as a lack of education (57%), pricing (62%), trust (57%), availability (56%) and accessibility (55%) are key barriers to adoption of sustainable finance products. And over half (53%) think that financial institutions are absent from debates around sustainable living and conscious consumerism, but have a role to play (64%).
Mark Lancelott, a sustainability expert at PA is quoted in the article and says: “Our survey reveals a worrying gap between consumers’ expectations of their financial services providers and their confidence in, and understanding of, the products currently available to them.”
He goes on to say: “Right now, consumers don’t realise how big an impact their financial choices can have on their ambitions to live more sustainably – which can be multiple times more impactful than other lifestyle changes – and there is too little choice and education available.”
The article concludes with a quote from Jason who says: “Pressures to meet the challenge of making sustainable finance mainstream by 2025 will come not just from consumer demand: there’ll be new non-financial reporting requirements and rules to prevent ‘green-washing- coming into force imminently, while other banking regulations are likely to incorporate sustainability and ESG measures.”