The modern-day consumer is more conscientious than ever before. They understand the implications of their purchases on the community, which leads to more careful choices. One such choice is banking. More and more people are now opting for socially responsible banking, an umbrella term for a set of ethical practices.
Ethical banking could be anything, from banks focusing on environmental sustainability and lowering their carbon footprint to banks advocating social justice. The idea is for the bank you choose to align with your morals and ethics.
Benefits of Ethical Banking
But ethical banking goes beyond just helping the individual. They foster a better community that is governed by a set of principles.
Socially responsible banks encourage transparency, which reduces the issues clients may have with the bank. Transparency ensures a satisfied clientele, effectively earning the bank a good reputation.
Individuals who choose to partner with socially responsible banks can enjoy the peace of mind that they contribute towards a better society in one way or the other.
Ethical banking also supports minority-owned businesses like women-led ventures, which allows people to grow and develop without facing financial limitations. Ethical banks may offer grants to organizations advocating for human rights and social justice. This helps create a more morally adept community.
Socially Responsible Banks of 2023
Given the benefits of ethical banking, many people are actively opting for ethical banks. We have shortlisted some socially responsible banks you can use in 2023.
Aspiration promises its customers that it won’t use its money for mining and drilling for fossil fuel industries. The neobank is aware of its environmental responsibility and even offers are forestation initiative to customers with every transaction. It is a certified B Corp and has an app that allows you to keep a check on your personalized sustainability score.
Citizen Bank is one of the oldest banks in America and has always been a frontrunner in social responsibility. In olden times, it supported causes like the abolition of slavery. Even today, it continues to fund underserved communities. It also pledged to lend an estimated$10 billion to low and moderate-income neighborhoods by 2020.
Also known as ‘America’s socially responsible bank,’ Amalgamated Bank is a certified B corp. It offers green credit cards to customers and earned a high score from the LGBTQ group in the Corporate Equality Index. It continues to work with and support various social justice causes, like increasing the presence of women and people of color in the workforce.
Sunrise Banks offers a special mortgage plan for those who fail to qualify for the traditional mortgage plan. It is a certified BCorp that supports financial literacy programs for low and middle-income students.
Ethical banking has become part of every individual’s goals. It helps foster a community based on equality, giving opportunities to low and middle-income groups. Fortunately, there are several socially responsible banks that you can choose from. Pick the bank with ethical practices that align with your goals.