Environmental, social, governance initiatives can cement customer loyalty
ESG particularly resonates with the 25-34-year-old cohort.
Environmental, social and governance factors play an increasing role in bank and credit union decision-making. Climate considerations, whether the result of government mandates, shareholder activism or environmental shifts, have altered risk assessment models. Additionally, the prospect of regulators adding ESG metrics to examination criteria is gathering steam.
ESG’s most immediate impact on the banking industry’s bottom line, however, may come via the court of public opinion.
SRM is studying the drivers of customer loyalty as part of a research initiative we began in 2012. Our recent report, based on data collected in July 2021, offers clues on the extent to which bank and credit union fortunes hinge on customer perceptions in areas including ESG.
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