The power of embedded green finance

Banks recognise the need to align their offerings with growing consumer demand for sustainability. But despite efforts, many struggle to effectively embed green products and services into their offerings, hindered by outdated systems and a lack of customer data.

The key to overcoming these obstacles lies in leveraging carbon management as a tool for personalisation. By calculating carbon footprints based on spending data, banks can offer their customers tailored carbon insights and climate action recommendations. This personalised approach enables customers to make more informed decisions in line with their own lifestyle choices.

Once banks have engaged users on their sustainability journey and qualified their customer base, they can seamlessly launch embedded, low-carbon financing products at the point of need. This could include savings products or customer loans to larger ticket items like green mortgages or home energy retrofit propositions.

In a recent study by McKinsey, 64% of consumers said they were more likely to respond to a bank's offer to install solar panels than to work directly with the supplier. Consumers trust banks to provide them with advice and financial analysis, and banks can leverage this to promote more sustainable purchasing behaviour.

Commercial benefits

These initiatives benefit both customers and the bank. Customers enjoy a more personalised experience and can more effectively make sustainable decisions in line with their personal values and experiences. They can also save money and gain relevant support for taking more expensive but impactful action.

It also offers significant commercial benefits to banks. Personalising offers increases conversion rates and lowers the cost of acquisition for banks. Also, by effectively supporting customers on their sustainability journey, banks can improve their brand reputation as socially responsible institutions. This, in turn, attracts conscious consumers, enhancing the bank's competitive edge in a market that increasingly values sustainability.

How Cogo can help

Cogo specialises in creating personalised experiences for customers. We combine market-specific carbon data and behavioural science techniques, like nudges, cues, feedback and rewards, to drive real sustainable behaviour change and engagement.

Engagement is key and with access to new data sets, banks can build even more targeted experiences. Through our banking partners, we have seen increased visits to the mobile banking experince, stronger dwell times per visit and higher conversation rates to embedded offers that match their customers values, beliefs and lifestyle position.

Get in touch with our team today to see how we can help you create engaging customer experiences.