Ethical Banking.

WoodruffsDad

Now that the Co-op Bank has been taken over by two American hedge funds, what alternatives are there for those of us who require ethical banking?

rb10

It depends on what you class as ethical, but a building society would probably meet most people's definition.

Nationwide, Norwich & Peterborough, Coventry and Cumberland (locals only) offer full-facility current accounts.

TSB may also end up being fairly ethical, but it's a bit early to tell just yet.

grumbler

A fresh thread: Co-op alternative

What's interesting, the first lines are almost identical to yours.

CLAPTON

WoodruffsDad wrote: »

Now that the Co-op Bank has been taken over by two American hedge funds, what alternatives are there for those of us who require ethical banking?

you never had ethical banking

innovate

The Salvation Army runs a bank, perhaps you find there what you are looking for. http://www.reliancebankltd.com/

I always thought ethical banking was a bit of an oxymoron.

JuicyJesus

grumbler wrote: »

What's interesting, the first lines are almost identical to yours.

Because people who don't actually know what hedge funds are think they're EEEEEEEVILLLLL.

alanq

innovate wrote: »

The Salvation Army runs a bank, perhaps you find there what you are looking for. http://www.reliancebankltd.com

Not much of a solution.

So should the ethically minded switch to Reliance Bank instead? Unfortunately, it says, it is in no position to accept a large influx of customers fleeing the Co-op, ...
"we only have one branch and just 21 staff. We don't have the infrastructure to cope with a sudden influx."

http://www.theguardian.com/money/2013/oct/26/ethical-bank-reliance-coop-salvation-army

thenudeone

I presume you've looked at https://www.!!!!!!.uk (and exclude Co-op which is still there)

p00hsticks

This subject was discussed on this weeks Moneybox programme on Radio 4, although I can't remember what the suggestions were

http://www.bbc.co.uk/programmes/b03f86kz

gt94sss2

thenudeone wrote: »

I presume you've looked at www.!!!!!!.uk (and exclude Co-op which is still there)

I looked at that website the other day - and imho it looks like the ratings are virtually made up and meaningless.

I mean it gives 100% to Metrobank for customer service, 60% to Citibank and 35% to both HSBC and First Direct.. which I am sure many of their respective customers would disagree wth..

Besides, how do you define an ethical bank? I wouldn't have considered the co-op ethical as it gave soft loans to political parties.

Most banks have some kind of ethical policy - for instance HSBC's is here and someone even voted them the most ethical multinational in 2009 (I'm not saying I agree but its all in the eye of the beholder)

Regards
Sunil

tofu

I don't think "ethical banking" is an oxymoron. Last time I looked at this question, I thought, better make £500 more per year by maximising interest rates and avoiding fees, and then use the money to do good, e.g. by increasing charitable donations. However, I now view such an approach as unsustainable: we won't change the world by investing in weapons, tobacco, oil, and then use the profits to fund charities that mitigate their effects.*

Instead, I'd rather invest my money directly in activities that I support, even if they are not as profitable as those that I find morally wrong. Likewise, I'd rather pay a little more in fees with a bank that does not rely on milking other customers who are in financial difficulty, or miss-selling products to customers who aren't clever enough to understand the terms and conditions.

So, I think there are banks that are more ethical than others - but unfortunately, there don't seem to be many of them that offer all the services I need. Whether or not Co-op met all the criteria, I think there's currently quite a gap in the market.

*not that these examples reflect my personal ethical values - the question whether these are universal is an entirely different matter.