Green offerings are a business opportunity for financial institutions

A recent McKinsey survey shows a meaningful and growing appetite among American consumers for climate-linked financial products – but consumers need further education and advice to make informed decisions, and providers need to differentiate themselves from the pack. Generic environmental, social and governance (ESG) offers will not be enough to win….

Here are five insights from the survey:

Demand for green financial products is strong and broad – not limited to a niche segment. Nearly 40% of US consumers report interest in enrolling in a climate-linked financial product.

Green offerings are a business opportunity for financial institutions, not a concession. Many green financial products are designed and sold as ‘concessionary’ offerings, such as discounts on borrowing for electric vehicles.

Consumers are eager for advice and support from their financial partners. They are inundated with offers but they do not have easy access to quality technical and financial advice on how, or whether, to incorporate these offers into their lives.

Consumers need to be educated – they may not yet have strong perspectives about which green offerings best suit their needs.

Consumers do not yet differentiate between banks on climate topics, leaving an opportunity for banks to stake a claim as credible, innovative and leading in this emerging market.From ‘Green Growth: Unlocking Sustainability Opportunities for Retail Banks’, McKinsey & Co