Why I Changed Banks For The Planet

Primo Natura

08 Nov 2025 — 4 min read

Banks are integral to our daily lives. We rely on them to receive our salaries, make transactions, pay bills, and secure loans or mortgages. However, behind each of these transactions lies a financial system that subtly influences not just our economy but also, albeit less obviously, our planet. The practices of banks can determine which industries flourish, which ones struggle, and how businesses impact the environment.

Yet when look to consider our environmental impact, what comes to mind first? Perhaps using less plastic, embracing reusable products, or flying less. While all viable and important areas, our personal finances might fly under the radar, especially where we keep it.

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Personal banking may constitute a large source of indirect greenhouse gas emissions, for the average person in the U.S. citizen. — Project Drawdown

Does it matter where we bank?

The short answer is that because of the fossil fuel industry's high profitability and solid credit ratings, many banks have historically supported these projects. Yet despite public awareness about the farms of fossil fuels, research conducted by BloomberNEF's (Energy Supply Banking Ratio) found that or every dollar that the world’s leading banks invest in oil, natural gas or coal, only 89 cents are invested in low-carbon energy companies. Additionally, the 65 biggest banks in the world invested about US$3.29 trillion (£2.45 trillion) in fossil fuels between 2021 and 2024, while investing about US$1.37 trillion in sustainable power, which includes solar, wind, and related infrastructure.

Therefore, where we bank matters.

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Did you know that for every US$1,000 a person has in savings is roughly equivalent to the direct emissions generated by flying from New York to Seattle every year. — Project Drawdown

Why do people not change banks?

Changing banks in the UK is simple (I know this as I have used it) using the seven-day Current Account Switch Service introduced over a decade ago. Despite this, people are more likely to get divorced than switch banks. While I am single and not married, I too was reluctant for several months.

Marcel Lukas, a Senior Lecturer in Banking and Finance and Vice-Dean of Executive Education, explained there are two concepts at play. The first is the “endowment effect” which he state is the increase '…the subjective value of someone’s existing bank account, simply because they already own it.' Secondly is the “prospect theory” which indicates 'that people weigh any potential losses more heavily than equivalent gains.' This stifles, people towards staying with their familiar provider when disruption may occur.

Personally, I knew why I should move my money and had used the advice I will share but, had been scared to move my money. Personally, a combination of insecurity of what happens and a lack of financial education. While I could easily swap plastic bottles for a reusable, moving money and having to sort paperwork with the school I work at etc felt too much for me for a while.

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UK households’ deposits with banks and building societies increased by £5.4 billion, following a net increase of £7.1 billion in July 2025. — The Conversation

person holding brown ULX leather wallet — Photo by Oliur / Unsplash

Are there Green Banks?

The simple answer is yes; and through the advice of The Ethical Consumer and sites such as Bank Green, I felt more informed than I had ever been. In the UK, building societies are a great example of ethical banks such Nationwide, the biggest building society in the country. One of the parameters of The Building Societies Act 1986, is that 75% of a building society’s assets must be in the form of loans and mortgages for residential properties. This combined with building societies investing in residential mortgages and personal loans makes fossil fuels investments highly unlikely.

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Did you know that eleven of the largest U.S.-based banks lend around 19.4% on average – and as high as 30% – of their portfolios to carbon-intensive industries. — Project Drawdown

So How Do We Find a Green Bank?

When looking to find a new bank or see how ethical your bank is, sites such as The Ethical Consumer, have a section dedicated to finance. As part of this, they have documented how ethical several banks are, and which are better alternatives. Secondly, sites such as Bank Green, allow you to check the ethical rating of your bank, and find banks based on the country you live in, helping save you work. Bank Green allows greater flexibility as you can view banks by country and have more data. Combined, these resources help navigate an often confusing area.

person holding white and red card — Photo by Eduardo Soares / Unsplash

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Did you know that moving from a carbon-intensive bank to a climate-responsible bank could reduce the personal banking emissions of an average person in the U.S. by 76% — Project Drawdown

What Did I Do?

Personally, I used a handful of sites, and knowledge to best choose the bank I wanted to be with. I also made sure the bank I wanted to switch with had a good app to use on my phone ahead of switching. Using the switch guarantee in the UK made moving from one to another easier, as part of that the bank I am with closed down my old account with Barclays.

Unlike many actions, we can take, we do not see the impact of our money sat in banks. Therefore, it felt empowering once I knew the impact I could have and researched how easy it was to switch banks. Many banks that are green are building societies, which are 'a financial organization that pays interest on investments by its members and lends capital for the purchase or improvement of houses.' according to the Oxford Dictionary.

I believe we tend not to think about things we do not see in our daily lives, yet switching banks can be a powerful, relatively easy, and affordable climate action (Project Drawdown). This is especially true as where we spend money is a vote.