Ethical Banking

Purplefairy

Hi

After everything that has happened with the banks recently I've been looking into changing my bank account and ISA to a more ethical bank.

The obvious choice is the Cooperative, but service is also important and after doing some brief research (there isn't that much information) I found that the Cooperative have problems with their internet banking being up to date and transactions taking three days to show up. And more worrying, issues with failure to act in case of fraud (I recently had this happen with my Santander account).

I also tried to look into other options, and even into 'neutral banks' like Nationwide. But I could find out anywhere about what a 'neutral bank' was!

I use Moneysaving expert quite alot but it's not something covered on here.

My questions to you are:
1) Does anyone use the Cooperative? If so what do you think of them?
2) Can you tell me what is meant by a 'neutral bank'?
3) Are there other options?
4) Can anyone recommend other useful sites?
5) Is it really not worth it and I should stay with unethical banks?

Thanks

mr_fishbulb

Ethical means different things to different people. E.g. environmental, weapons, big bonuses, no shareholders, etc.

It's probably easier for you to define what you don't want your bank to do and then you can start looking if that bank exists.

Purplefairy

Thanks mr_fishbulb.

I think ethical banking means to me a company that thinks carefully about the things they finance- like the policies followed by the cooperative bank and also explained in wiki

"An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. Ethical banks are part of a larger societal movement toward more social and environmental responsibility in the financial sector."

I would include links but I'm not allowed to!

anselld

Why not First Direct?

Excellent service. OK, owned by HSBC, but then not all banks were bailed out by the Tax Payer!

http://www.interactive.firstdirect.com/involved.html?WT.ac=FSDT_HB_OurWorld

thenudeone

I use smile (part of the co-op) and it's okay but I wouldn't say it's cutting edge.
I haven't noticed things taking ages to appear online. Certainly some Faster Payments appear online very quickly.

A neutral bank can mean whatever you want. I presume you mean one that didn't / hasn't lent to developing countries (or their oppressive dictators).
All the remaining UK Building Societies probably fall into that boat but you would need to research that to be sure.

Also - have a look at: http://www.triodos.co.uk/en/personal/

Finally - Ethical Consumer magazine did an article on Banks not long ago - I'm sure they will sell you a back copy, or for £3 you can download the full report: http://www.ethicalconsumer.org/FreeBuyersGuides/money.aspx
Although the summary ratings are free: http://www.ethicalconsumer.org/FreeBuyersGuides/money/internetbankaccounts.aspx

Purplefairy

Thanks for all your help so far.

Anselld I did have HSBc on the consider list as they were runner up in the Sustainable banking award last year (winner was the Cooperative) and I'll look into First Direct.

thenudeone thats for highlighting Smile, I did look at Triodos but they don't do current accounts and their ISA requires notice for withdrawals, and I really need instant access. I did look at the Ethical consumer website and saw the table- it doesn't really explain what the numbers mean so I may download a copy of the full report.

callum9999

I don't know what "neutral" bank means, but emailed Nationwide about this a while ago and they replied with:

As a mutual building society Nationwide does not hold shares in any other company anywhere in the world and therefore does not invest in oppressive regimes, the arms trade or any ethically unsound companies. Nationwide invests surplus funds in domestic and international money markets only.

Nationwide is committed to protecting the environment and to recycling materials wherever possible. Paper, glass, PC's and printer cartridges are all recycled as a matter of policy. Nationwide also supports the environment through tree planting, for example, over 70,000 trees and shrubs have been planted around our Swindon headquarters and a further 1350 trees have been donated to the Great Western Forest Community scheme in the Swindon area. As well as this, Nationwide has also funded projects with the Wiltshire and Berkshire Canal Trust.

We do not produce an environmental/social report as we do not manufacture products that affect the environment.

However, Nationwide does believe it is important to look after the environment. Nationwide staff are encouraged to be environmentally aware, to comply with all legislative matters and, where practical and economically viable, to implement environmental recommendations from advisory groups. Initiatives undertaken to benefit the environment include:

· In the area around Nationwide head office we have planted over 70,000 trees and shrubs which improve the landscaping of the site and contributes toward improving the environment. A further 1350 trees have been donated to the Great Western Community Forest Scheme in Swindon.

· The Society uses a high proportion of recycled paper and promotes recycling of bottles, cans and printer cartridges.

· The Society has also contributed towards a number of environmental/conservation projects around the country. For example, we funded the publication of a booklet detailing wildlife sites for schools, available from the Wiltshire Wildlife Trust.

Regarding employees' rights, Nationwide is an Equal Opportunities Employer and a member of the Employers' Forum on Disability and the Employers' Forum on Age. Nationwide also has Investors in People status, which is a national award designed to recognise companies who provide quality business-driven training and development for their employees. Investors in People is part of the total quality training and development initiative in Nationwide.


It doesn't fully explain it to me (they say they don't invest in the arms trade etc., but would they provide banking facilities, loans etc. to them?) but they seem pretty ethical.

Derivative

The above description, in layman's terms:

Nationwide have some of the best PR representatives in the country. We spend millions of your money every year on making ourselves look good.

The banking industry is based on taking advantage of the poor (those without capital). Ethical banks are an oxymoron.

lexa34

Hey,

There is a great seminar on this at UK AWARE- the sustainable living show next Friday and Saturday at Olympia ( £1 code on the newsletter/ in the days out section) called Ethical Finance can you be ethical and shrewd but you could ask the panel their opinion!

http://www.ukaware.com/show/index2.php?mid=32

It is 1500 hrs next Friday- hope you can go!!

lexa34

Purplefairy wrote: »

Hi

My questions to you are:
1) Does anyone use the Cooperative? If so what do you think of them?
2) Can you tell me what is meant by a 'neutral bank'?
3) Are there other options?
4) Can anyone recommend other useful sites?
5) Is it really not worth it and I should stay with unethical banks?

Thanks

I use the Co-Op banks. hardly had a problem with them (used to have Halifax and before that Lloyds LOTS of problems). For example they did make a error a few weeks ago BUT corrected it and when I asked about compensation of £10 for the inconvenience (all any bank understands really IMO!) they gave me £15.

It does make a difference- I think it is good to move to something where "less evil" gets done with your money! It is a good exercise just learning about this stuff and assessing what is important to you and how impact the world-particularly in such a important area- finance!! We do live in a capitalist society (blah, blah) and so much is driven buy how we spend /what we do with our money. How little that is( thinking of my bank balance!!). There are better choices you can make and respect to you for doing something about this I say.

Purplefairy

Thanks Lexa34, its really reassuring to know that you've had a good experience with the Coop, even if it's not been problem free. No ones perfect, and we can't expect banks to be- after all they are ran by people! It's what you do AFTER a mistake that matters

Coop are looking like the best option so far, they have the best ethical policy- I've done some reading on the others and it all seems like a bit of a PR stunt. And they look like the best one for customer service, well Smile was better but I like the idea of being able to go into a branch- I live in central Manchester, where the headquarters of the Coop is based so there are quite a few branches (something other customers lack!).

I had another look at the customer review website that I originally looked at that had quite a few negative reviews of the Co-op and looking more closely it looked like a site where people go to for a general moan and quite a lot of other banks got similar reviews so maybe it's not that accurate!

As for the UK AWARE show, unfortunately I won't be able to make it, not because I'll be 'Up North' but I'll be at the TUC 'March in March' against the cuts to the public sector down in London which is a shame!