The COVID-19 pandemic has prompted people to think about their impact on the planet, and banks have re-examined their approach to environmental, social and corporate governance (ESG). This is also due to the fact that more and more investors are looking for sustainable products, as well as the growing pressure from regulatory authorities for financial institutions to take into account the risks associated with a lack of ESG policies.
As a result, more banks started investing in green solutions and digitizing their processes to be more successful in the future. There is also a trend of customers preferring digital banking services not only for their convenience but also for their environmental benefits.
Digital services save nature
The digital process of concluding consumer loans is more environmentally friendly than the traditional one. A customer who prefers a digital service saves the use of between 10 and 30 sheets of paper, as well as the corresponding 2 to 13 liters of water for each sheet needed for their production, commented Ivaylo Glavchovski, Executive Director of UniCredit Consumer Financing. According to him, for every unused 8,333 sheets of paper, the need to cut down one tree necessary for their production is eliminated. One hidden source of carbon emissions is the use of personal transport to the branch, which is saved in cases where contracts are digitally signed.
Every tenth consumer loan is concluded digitally
Currently, every tenth consumer credit is concluded digitally. The banking sector expects this number to double by 2025. The trend is towards digitizing more and more banking services and encouraging customers to use digital channels instead of traditional ones.
“Digitalization is heading towards mass banking processes such as daily card payments and household bill payments,” said Borislav Genov, Chief Retail Banking Director and member of the Management Board of UniCredit Bulbank. He shared that more of the bank’s customers who use digital services when taking out loans are men (58%). Half of the users of digital services are under the age of 37.
At the end of March 2023, for the first time, UniCredit Bulbank will present an ESG report as a supplement to their annual report. It will share data on the results of the implemented ESG strategy of the bank and their impact.
