Corporate banking services 'attract more custom with sustainable policies'

Corporate and private banking services might find business increases if they focus on ethical commercial practices, as one expert claims this has already helped some companies grow.

Stephen Hine, head of responsible investment development at the Ethical Investment Research Service (EIRIS), claims the Co-operative Bank's expansion "is illustration that those [institutions] have attracted more custom by having their ethical or sustainable stamps".

Those offering corporate banking services could benefit from improved reporting on ethical activities, as recent EIRIS research shows 73 per cent of Britons believe there should be codes in place to prevent commercial support of firms that engage in morally-questionable activities.

The socially-responsible investment expert argues groups should raise awareness of the issue by promoting ethical products more openly, making it easier for consumers to judge an organisation's performance.

With 66 per cent of respondents worrying financial institutions have not learned the lessons of the economic crisis, corporate and private banking services responding to this may be well placed for success.  ADNFCR-2318-ID-800227369-ADNFCR