Ethical business banking – how I moved to a bank that doesn’t invest in fossil fuels

While I’ve been stuck in covid isolation, I decided it was time to move to an ethical bank… it’s something I’ve been meaning to do for a while.

I’m currently with one of the big 4, who invests in fossil fuels and, to be honest, has pretty poor customer service.

I used the Market Forces bank comparison table to look into which bank might match my values and ethics.

A few months ago, I put my big 4 bank “on notice”. You can also do this at the link above. Basically it sends the bank an email saying that if they don’t stop investing in fossil fuels, you’ll move banks.

Of course, I heard nothing back (shock horror!).

CHOOSING THE RIGHT BANK FOR ME

I’ve started the move to The Australian Mutual Bank.

I chose this bank because they have no record of investing in fossil fuels and because they also do not invest in industries that support animal testing, live animal export, persistent chemicals, gambling, deforestation and military weapons and equipment. They are also a B Corporation Certified bank.

Here’s their ethical stance if you want to take a read.

The process involved:

Here’s the process I’ve gone through, in case you’re considering this move too.

I have to preface this by saying that I don’t have any loans (just simple transactional and savings account). I do understand this does make the process easier… however, I do have credit cards and I’ve explained below how I’m handling this.

1. Reviewed the bank accounts available at Australian Mutual and chatted to customer service to find out what types of accounts are best for me

2. Made a list of the account types I would need and what they are for (I have four accounts – explained more in this article).

3. Made a list of current transactions, bills, automatic debits coming out of my current accounts to make sure I notify the relevant companies with my new bank details

4. Made a list of business touch points that will need updating with the new account details– my invoice template, paypal account etc

5. I also have two credit cards (with nothing owing on them) which will remain with the big 4 for now until I establish a relationship with Australian Mutual. I’ll revisit this in another couple of months (this article explains why I have credit cards – but no debt).

6. Filled out a membership application form on The Australian Mutual website – this only took a few minutes but was the most frustrating part because they kept losing my form and I had to keep calling them to find out what was going on

7. Spoke with someone from a branch over the phone who has now processed everything for me and is sending out the new cards as I write this – and have to say, was really impressed with the personalised customer service

I should have my new cards delivered in about 10 days at which point I’ll be able to transfer over all my savings.

All in all, it was a pretty simple process.

Is your bank ethical? If so, who are you banking with? I’d love to hear your reasons for choosing this bank in the comments below.

By the way – my super is also with an ethical superannuation fund. What about yours?

More about my business values

At Alana Jade Studio, I have a commitment to leaving a positive social and environmental footprint. And you can read more about how I’m doing that in this article here.