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What is ethical banking?
Ethical banking is an approach to banking that considers how the financial institution is governed, how it uses money, who it lends to, what it chooses not to fund and how transparent it is about its impact.
What makes a bank ethical?
There is no single definition of an ethical bank. Many people assess factors such as transparency, lending practices, governance, certifications, customer ownership and public impact reporting.
How can I align my banking with my values?
If there are areas you are passionate about or care about most you can research banks and see their lending positions on these.
For instance, we know our customers care strongly about climate action and our responsible banking policy outlines that we do not lend to coal, gas or oil extraction or fossil fuel electricity generation.
What does customer-owned banking mean?
A customer-owned bank is owned by its customers rather than external shareholders. Profits don’t flow to outside investors or via the ASX. Instead, they stay within the bank as member-owned funds that help build equity, support future growth and create long-term stability. Customers typically have voting rights and a role in the organisation's governance, enabling bold action and long-term commitment on issues that customers care about.
What is B Corp certification?
Certified B Corporations™, or B Corps™, are businesses that have been independently verified as meeting standards for social and environmental performance, transparency and accountability.
How can my money have a positive impact?
Many people choose to align their money with organisations, products and services that reflect their values. Transparency, reporting and evidence-based decision-making can help support informed choices.
For example, at Bank Australia you can know your money is not being used to lend to harmful industries such as fossil fuels or intensive animal farming.
What does Bank Australia mean by responsible banking?
Responsible banking is Bank Australia's approach to using money in ways that consider social, environmental and economic impacts. This includes publishing information about what the bank does and doesn't lend to through its responsible banking policy.
How does Bank Australia use customer deposits?
Banks use customer deposits to support lending and other banking activities. Bank Australia publishes information about how it approaches lending decisions, including industries and activities it chooses not to finance through its responsible banking policy.
Do ethical banks lend to those in the fossil fuel industry?
Approaches to fossil fuel financing differ between financial institutions. If this issue is important to you, and before selecting a new bank, you might like to review publicly available lending and exclusion policies to understand how a bank approaches industries such as fossil fuels. As part of our responsible banking policy we do not lend to coal, gas or oil extraction or fossil fuel electricity generation.
Why do people choose an ethical bank?
People choose ethical banking for different reasons. Some are looking for greater transparency about where their money goes, while others are interested in customer ownership, responsible lending practices, long term environmental considerations or social impact.
How do I switch to an ethical bank?
Switching to an ethical bank involves:
- Comparing banking providers and their policies.
- Opening a new account.
- Moving your direct debits and recurring payments.
- Updating your salary or income deposits.
- Transferring your money.
- Closing any accounts you no longer need.
You can also review a bank's lending policy, ownership structure, impact reporting and certifications to understand whether the organisation aligns with their values before making the switch.
