Kevin Moss, senior advisor in Oliver Wyman’s North American Financial Services practice and a 32-year financial services veteran, thinks so. At the Banking Growth Forum, he’ll be talking about incorporating social and environmental values into growth strategies, and why it’s an untapped opportunity for competitive differentiation—especially with younger consumers, like his daughter.
During a conversation I had recently with Kevin, he told me that his daughter, a double major (economics, Spanish) interning with a bank, has definite ideas about her future career in financial services and incorporates these ideas into her behavior as a consumer as well. She wants to make a difference for those who are less fortunate in the world. Millennials, says Kevin, are well aware of the monetary and technological wealth enjoyed by so many in this country. They’re attracted to the idea that when they’re using some cool new fintech app to make transactions and manage their money, they can also be contributing to social and environmental good. Many older people who’ve had successful careers are also increasingly attracted to innovative ways they can give back.
The financial services industry has under-leveraged these changing consumer attitudes, says Kevin. We may need a focused industry initiative in the U.S. something like the Banking Environment Initiative in Europe. But apart from participating in industry efforts and making socially and environmentally responsible choices in their investments, facilities and business operations, banks could also develop products and services that turn doing good for the planet into a competitive differentiator. This idea directly pertains to relationship banking and marketing—topics that will be addressed in other Banking Growth Forum sessions.
“Simple things banks can do,” suggests Kevin, “include designing rewards programs so customers can choose to direct money or points to, say, purchasing a clean energy product or supporting an environmental organization. But banks can also get more ambitious and creative, perhaps offering dynamic product and service bundles that allocate some portion of fees, interest or income earned toward planetary good.”