Financial service providers falling short

PA Consulting (PA) has published new global research. That is revealing an overwhelming majority of people expect sustainable financial services to become the norm (93%). According to the research, consumers are currently facing a critical knowledge gap. This should serve as a wake-up call to financial services providers.

PA surveyed 3,500 consumers globally. Also, consumers of all age groups and geographies are looking to live, shop, and bank more sustainably. Most consumers do not realise how much of an impact their financial decisions can have on sustainability. A lack of education (57%), the research revealed that pricing (62%); trust (57%); availability (56%) and accessibility (55%) are key barriers to adoption of sustainable finance products. Financial service firms must urgently address gaps in knowledge and consumer trust to drive adoption. Mark Lancelott, sustainability expert at PA Consulting, says that their survey reveals a worrying gap between consumers’ expectations of their financial services providers and their confidence in, and understanding of, the products currently available to them.

Consumers don’t realise how big an impact their financial choices can have on their ambitions. Jason Hill, financial services expert at PA Consulting, added that the pressures to meet the challenge of making sustainable finance mainstream by 2025 will come not just from consumer demand. There will be new non-financial reporting requirements and rules to prevent green-washing coming into force imminently.

Their research highlights the pent-up demand for financial products and services. Failing to meet expectations will compromise customer retention. There are three core initiatives, such as build credibility, educate, and innovate. It will take investment and ingenuity, but it is critical the industry pivots, now.