Financial firms should prioritise practices and programmes driven by ESG if they are to continue engaging a younger generation, according to the latest findings from etika.
The survey detailed that only 29% of young people trust financial institutions to act ethically, and that 80% of young people are looking for ethical endorsements when making purchasing decisions.
It highlighted a significant shift in generational attitudes when it comes to what is expected from financial institutions, with 93% of young people more likely to choose a financial institution that strictly invested in ethical programmes.
Robert Schuijff, CEO of etika, commented on the findings: “These survey results serve as a much-needed wake-up call to other financial institutions and finance providers to lead by example and create a more openly ethical financial industry. Companies which only pay lip service to ESG and ignore the growing demands from their customers for socially responsible and ethical ways of doing business will suffer loss of customers, revenues and reputations.
“At etika, we have always led by example. The name ‘etika’ means ‘ethical’ in several languages and that’s exactly what we want to bring to finance – a responsible and fair approach to lending money. Ultimately, we want to make a positive impact in the world of finance, enable financial inclusion and become a tool for financial wellbeing.”
As economic challenges continue to elevate and fintech funding falling by a third globally to $63 billion in 2022, etiika emphasised that the survey results underline that financial companies need to be conscious of and be able to respond to changing user demographics and attitudes towards environmental and social issues if they are to continue to grow and thrive.
