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Updated on Tuesday, October 22, 2019
Socially responsible banks are financial institutions that allow their customers to manage their money while supporting a cause that matters to them. If you’d like to make a difference in the world, one way to start is with your bank account.
Working to fight climate change? A 2019 study found that banks worldwide had poured $1.9 trillion into financing fossil fuels since the Paris Climate Accord was adopted in 2015. Looking to support local businesses? A 2017 analysis found that most major banks grant less than one small business loan per branch each year. If fighting climate change and supporting local businesses are values that are important to you, you might want to understand what your bank is doing to help on either front.
Before you consider changing to a socially responsible bank, it’s worth understanding exactly how these institutions work, how to find them and how they can help your wallet. Here’s everything you need to know about socially responsible banks.