While some may see ESG as a tick-box exercise, Cogo has found carbon footprint tracker users to be more satisfied with their bank. Many European banks have woken up to this faster than counterparts in other markets around the world by innovating to use data and technology to help customers manage and reduce their impact while also giving them a commercial advantage.
With 24% of banking customers likely to switch if a bank is not doing ESG and Cogo’s carbon footprint tracker users scoring an NPS of 14 points higher than other customers, the case for carbon footprint management and doing ESG well is clear – avoid it and your customers will become disengaged and more likely to switch.
Emma Kisby, Cogo CEO, EMEA: “Carbon footprint management isn’t a ‘nice to have’ – it is a necessity for banks. We know from our research and work with many European banks that customers increasingly want this. In fact, it has become a real differentiator for customers. Quite simply, customers will switch if they don’t see their bank taking measures to help them address their climate concerns.”
Cogo has found that customers who use a carbon tracker are more likely to recommend their bank to family and friends. So as the fight for customers rages strong, those European banks that are utilising technology and data to tackle the climate crisis have a real opportunity to win the global loyalty race.
Kisby adds: “ Banks have a great role to play in helping to solve the climate crisis given that everyone’s personal impact directly relates to their spending.
“It is far better for banks to take a leadership position on sustainability and the climate. While ESG legislation is tighter in some markets than others, it is an inevitability as climate concerns grow. Those banks in Europe that are on the front foot and doing it well are in a great position, and will be able to use this to help their customers, in turn giving them a commercial advantage in future.”
The benefits of carbon footprint management technology go beyond simply measuring a customer’s carbon footprint. The technology can help banks to engage unengaged customers, cement customer loyalty and shape the customer proposition. The data can also be used to support areas of risk for a bank, such as its mortgage book.
