In an innovative move towards sustainability, Tandem Bank has joined forces with Cogo to enhance its banking app with carbon management features. This integration aims to assist customers in making greener financial choices, highlighting a growing trend in the financial sector toward environmental responsibility.
Emma Kisby, Chief Executive Officer of Cogo for EMEA, emphasized the crucial role banks play in environmental initiatives. “Banks have a critical role to play in helping to motivate and mobilise their customers to decarbonise,” Kisby stated. Tandem has already made significant strides in promoting eco-friendly living through products like its green home plan, making this partnership a logical progression. The goal is to engage consumers further and facilitate a shift toward sustainable practices.
Tandem Bank’s Green Gap Index reveals an interesting paradox. While there is a strong desire among consumers to reduce their carbon footprint, many feel overwhelmed by a lack of understanding regarding their environmental impact. This gap is echoed in Cogo’s recent research, which shows that 75% of banking customers want insights into the environmental outcomes of their spending habits, and 62% are looking for help from their banks to lower their ecological footprint.
To bridge this knowledge gap, Tandem intends to introduce the new carbon management functionality gradually. Initially, this feature will be tested with a limited group of users before it is rolled out more broadly next year. What sets this initiative apart is that it will allow all UK consumers to benefit from Cogo’s green tools through the Tandem app, even if they are not existing customers. This inclusive approach simplifies the enrollment process and maximises accessibility for those interested in sustainability.
Kisby notes the positive response from consumers when it comes to carbon footprint tools. “We know from our experience working with other banks globally that customers have a positive response to learning about their carbon footprint,” she said. Banking clients who have implemented similar features have experienced an impressive average Net Promoter Score (NPS) increase of over 14, alongside dwell times ranging from four to six minutes per session. Such high engagement levels are virtually unheard of in the banking sector, which typically maintains a transactional relationship with clients. The data shows an evident opportunity for banks to align their business objectives with sustainability.
Maria Khan, Director of Product and Digital at Tandem Bank, expressed enthusiasm about the partnership, noting the importance of consumer awareness concerning carbon impact. “Cogo allows Tandem to integrate this seamlessly,” Khan mentioned. This collaboration not only enhances customer experience but also fosters a deeper understanding and engagement with sustainability.
The innovative carbon management solutions provided by Cogo enable consumers and businesses to measure, understand, and reduce their impact on the environment. By partnering with some of the world’s leading banks, Cogo integrates carbon-tracking features into their banking platforms. The company employs advanced models for accurate carbon emissions measurements tailored to local markets and applies behavioural science techniques designed to encourage sustainable choices among customers.
Tandem Bank’s identity as a greener digital bank is firmly linked to its mission of transitioning the UK toward lower carbon lifestyles. Their product offerings, from eco-friendly home improvement loans and low-emission vehicle financing to energy performance certificate discount mortgages, make it easier for consumers to adopt greener practices. This not only helps customers save money but also actively contributes to reducing their carbon footprints.
As financial institutions increasingly recognize their role in mitigating the climate crisis, partnerships like the one between Tandem Bank and Cogo are crucial. They represent a broader shift within the industry, where customer engagement is no longer limited to transactions but extends to nurturing responsible and environmentally friendly behaviours. By leveraging technology and partnerships effectively, banks can play an integral part in aligning profits with purpose, ultimately leading to a more sustainable future.
In conclusion, the collaboration between Tandem Bank and Cogo serves as a benchmark for how financial services can integrate sustainability into their core operations. With increasing consumer demand for transparency and assistance in making environmentally conscious choices, such initiatives will likely pave the way for a greener banking landscape.
