Customers turn to ethical banking in midst of crisis

There is growing evidence that customers are turning to small, ecologically based “ethical” banks in the midst of the global credit crisis, according to a recent Reuters story. Alternative agencies such as Belgium’s Triodos and Britain’s Ecology Building Society and Co-operative Bank are seeing increases in their small customer bases and drawing plaudits for their investment strategies.

The ethically focused banking groups say they are transparent and invest only green, social and cultural projects, such as wind turbines and medical centres.

Michael Lafferty of the Lafferty Group which advises retail banking told Reuters that the crisis showed a deeper problem of lack of trust in banks. “The big concern to people is: Can they trust their bank? That’s the ultimate ethical issues, I’ve been testing people…not one of them would trust their bank at the moment.”