- February 2023
January 2023
Sustainability is a pressing issue that extends beyond just the banking sector. However, the existing knowledge gap on the subject remains an obstacle to a successful transformation, as shown in our recent survey.
Nowadays, banks are expected to show their commitment to sustainability. According to our survey, 61 percent of the Swiss, 48 percent of the Germans and 55 percent of the Austrians consider this an important matter. Despite the expectation towards banks adopting sustainable practices, respondents in Switzerland, Germany, and Austria consider security, returns, and cost as the top decision-making factors when investing in bonds, equities, and funds. Sustainability was rated as the most critical factor by only a small percentage of respondents, likely indicating a need for better client education and information.
Sustainability presents banks with a unique opportunity to differentiate themselves and attract Swiss retail clients. By actively promoting their sustainability profile and offerings, banks can attract new customers, as they are still open to switching to a more sustainable institution. Additionally, providing credible advice on sustainability is crucial for retaining existing clients. Clients who are well advised on sustainability perceive the products as credible and rate the offering as satisfying. While efforts to provide targeted advice on sustainability have proven to pay off, banks are not yet fully exploiting this opportunity. A significant proportion of respondents still have little understanding of sustainable investing products, and a third of respondents have not been approached by their bank on the subject. Regulatory developments in Switzerland regarding the prevention of "greenwashing" and the integration of sustainability into the advisory process further strengthen the case for systematically advising clients on sustainable products.
Marco Kundert, Head of Banking & Capital Markets at BearingPoint in Switzerland
Information gap remains high
More than half of bank customers currently do not know whether their bank offers any sustainable investing products. Furthermore, most respondents are completely unaware of their bank's sustainability rating (89% of Swiss, 93% of Germans and 92% of Austrians). This result is at a similarly high level to the one in 2021. The lack of information goes hand in hand with a low willingness to engage in sustainable investing.
Willingness to switch to sustainable banks
Switching from one bank to another due to its sustainable investing offering is considered by 56% of the Swiss. The willingness to switch is higher among 18-24-year-olds in Switzerland and Austria compared to the overall population. Like in 2021, only 19% of those in this age group refuse to change banks for sustainability reasons. In Germany, the figure is 36% (2021: 29%).
Environmental sustainability only at same cost
Although many customers place a high value on sustainability, the survey shows their willingness to pay more for it is low. This rejection of higher costs has increased slightly since last year: 70% in Switzerland, 77% in Germany and 79% in Austria. In all three countries, however, the younger age groups are much more willing to accept higher costs for greater sustainability than the overall population.
Sustainable investing advice well received
More than two-thirds of those who have received advice on sustainable financial products find they were (relatively) well advised. In addition, most respondents rate their bank's sustainable products as credible - 85 % of the Swiss, 82 % of the Germans and 86 % of the Austrians. Their bank's range of environmentally sustainable equities/bonds & funds is also rated as "good" by most customers in all three countries.
About the study
The data is based on an online survey conducted by YouGov Deutschland GmbH on behalf of BearingPoint, having 4066 people in Switzerland, Germany and Austria participate between the 15th and the 24th of November. The results were weighted and are representative of the respective population aged 18 and above. This is the third time the survey was conducted in Switzerland, Germany and Austria.
