Will Big Banks` Green Initiatives Court Customer... - Card Issuers News


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Card Issuers » Will Big Banks` Green Initiatives Court Customer Confidence?

Will Big Banks` Green Initiatives Court Customer Confidence?

The content is accurate at the time of publication and is subject to change.

Bank of America may come in last in customer satisfaction, but Bloomberg Markets magazine has named them second in the world and first in the U.S. when it comes to its environmental initiatives.

Bloomberg Markets magazine evaluated 48 global financial institutions valued at $10 billion or more for their “Greenest Banks” article, which will appear in the May issue. Bank of America has also been named Most Innovative Investment Bank in Climate Change and Sustainability by The Banker Magazine and came in second on Newsweek magazine`s Greenest Companies roster.

Bloomberg`s ranking reflects banks` efforts in the renewable and low-carbon energy arenas, as well as companies` operational impacts and energy consumption reduction. Bank of America made headlines with two solar power transactions in 2011 which were expected to generate renewable energy as well as create jobs, as well as setting a goal to reduce global greenhouse gas emission 15 percent by 2015.

Responding to the praise of its environmental policies, Brian Moynihan, Bank of America` CEO, said “Our clients operate globally, and rewarding business opportunities are abundant in the new energy economy.”

Bottom of the Barrel

Moynihan must have been relieved to be in the news for something other than Bank of America`s miserable customer satisfaction rating. In December, they came in dead last in the American Customer Satisfaction Index, which was published by market research firm ACSI LLC, bases in Ann Arbor, Michigan, and surveyed 4,500 customers across the U.S. The managing director of the ACSI, David VanAmburg, said of Bank of America, “It`s pretty well entrenched at the bottom of the industry.”

Indeed, in the wake of Occupy Wall Street and increasing consumer anger about big bank practices and exorbitant executive bonuses, more and more people are turning to credit unions and smaller banks. Customers are disgruntled by high bank fees, and some are using their credit cards and cash exclusively, eschewing banks and checking accounts altogether. Credit card applications are still robust, as consumers look to rewards credit cards in order to get more from their money, rather than having it drained away by big bank fees – however, card approval ratings with big banks are down. Small banks and credit unions are approving many more applications than big banks, as you can see from this illustration.

Credit-Land.com Commentary

Here at Credit-Land.com, processing credit card applications is only part of what we do. Our editorial team researches the latest financial news and information every day, striving to bring smart and relevant analysis to our readers. Michael Germanovsky, editor-in-chief of Credit-Land.com, spoke to Steve Viuker in an interview for the New Jersey Banker this week. “Out of 1,205,199 complaint inquiries against banks, mortgage lenders, and credit card companies submitted with the Better Business Bureau in 2011, the three issues that arise most often, according to Credit-Land.com research, are billing, interest rates, and fraud, which means that many consumers are still having a hard time understanding terms of their contractual agreements and the type of protection coverage they receive from the banks,” said Germanovsky.

“Although the CARD Act established some guidelines… there is still lack of clarity that confuses consumers. Credit-Land.com data shows that overall approval rating of big banks is relatively small compared to smaller financial institutions. Without improving lending opportunities for average consumers, big banks will continue to see their customers choosing smaller banks and credit unions.”

Consumer Confidence

The one bright spot may be that consumer confidence appears to have risen again in March, according to the Discover U.S. Spending Monitor. Last month, 25 percent of those polled said that their personal finances were improving, and 35 percent said that they believe the overall economy is improving. Thirty-four percent of respondents said that they plan to spend more during the upcoming month, and 36 percent rated their personal finances as being good or excellent.

Whether or not customers choose to entrust those finances that they are feeling so good about to big banks or to credit unions and smaller institutions will probably have more to do with banks` customer policies and less to do with their green initiatives.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

The New Luxury Card App is Launched
The New Luxury Card App is Launched

Posted: March 18, 2019

Luxury Card has rolled out their new app, giving cardholders access to a variety of features and benefits including, finding one of a kind experiences and chat in real time with Luxury Card Concierge Specialists. These specialists can help… Continue reading

Credit Card Debt At its Highest Level
Credit Card Debt At its Highest Level

Posted: March 15, 2019

U.S. credit card debt has surpassed all previous years hitting a whopping $870 billion in December of last year. This upswing, which brought the level of consumer debt to its highest point to date, occurred when credit card balances went… Continue reading

Citi Prestige Credit Card Adds Cellphone Protection
Citi Prestige Credit Card Adds Cellphone Protection

Posted: March 14, 2019

Breaking or losing your smartphone can get expensive, but so can paying for insurance to cover it. This is something Citi knows well so they are adding cellphone protection to the Citi Prestige® credit card package starting May… Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn unlimited 1.5% cash back on every purchase, every day
For Average, Fair, Limited Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!