Asian banks play a critical role in empowering consumers as part of their sustainability agenda, according to Fair Finance Asia
PHNOM PENH, Cambodia, Dec. 5, 2024 /PRNewswire/ -- Fair Finance Asia (FFA) has published a new scorecard assessing to what extent Asian banks enable consumers to actively contribute to sustainability outcomes.
Launched on December 4, International Day of Banks, the new scorecard, Empowering Consumers as Drivers of Sustainability in Asia's Financial Sector, benchmarked the policies of 15 banks across Cambodia, Indonesia, Pakistan, the Philippines, and Thailand in four key areas: financial inclusion, consumer protection, financial literacy and education, and engagement and accountability mechanisms.
While banks scored better, on average, in financial inclusion (5.2/10) and consumer protection (5.5/10), they scored poorly on engagement and accountability mechanisms (1.3/10). Across the four key areas, the assessed banks scored 3.5/10 on average. FFA, with national coalitions, Fair Finance Cambodia, ResponsiBank Indonesia, Fair Finance Pakistan, Fair Finance Philippines, and Fair Finance Thailand, and research partner, Profundo, call on banks to balance inclusion goals with financial literacy and consumer empowerment initiatives, ensuring that clients are meaningfully informed about their sustainability strategies and financing practices, and are able to hold them accountable for implementing their commitments.
"Asian consumers are increasingly expecting transparency and accountability from financial institutions. Banks should respond by educating and engaging with consumers, empowering them to make smarter financial decisions that align with their values, and enabling them to be partners in sustainability," said Bernadette Victorio, Program Lead, Fair Finance Asia.
"To drive meaningful sustainability, banks must empower consumers through transparency and education as active partners in achieving social and environmental goals," said Yut Sakara Phon, Coordinator, Fair Finance Cambodia.
"To truly drive change, banks must prioritize consumer engagement in shaping a more responsible and sustainable financial ecosystem creating lasting positive impacts on environment and society," said Herni Ramdlaningrum, Program Manager, PRAKARSA.
"Banks in Pakistan appear to prioritize profit over purpose, often promoting financial products with very limited knowledge of their impacts on individuals and society. Banks must do more to empower people and protect the planet," said Asim Jaffry, Country Program Lead, Fair Finance Pakistan.
"While the assessed Philippine banks scored highest in financial inclusion, financial literacy, and accountability mechanisms, Philippine banks must enhance transparency, particularly by disclosing information about financed projects," said Dr. Genalyn G. Aquino-Arcayera, Program Manager, Fair Finance Philippines, Initiatives for Dialogue and Empowerment through Alternative Legal Services (IDEALS).
"It's great to see that Thai banks are leading in consumer protection among the countries assessed. However, gaps remain in policies to prevent over-indebtedness, and there is an urgent need to strengthen accountability and transparency," said Sarinee Achavanuntakul, Head of Research, Fair Finance Thailand.
To access the scorecard, visit: http://bit.ly/3Vp0emN
For further inquiries, contact:
Kyle Cruz
Knowledge and Communications Manager
Fair Finance Asia
Note to editors:
About FFA
Fair Finance Asia (FFA) is a regional network of Asian CSOs committed to ensuring that financial institutions' funding decisions in the region respect the social and environmental well-being of local communities. For more information about FFA, visit: https://fairfinanceasia.org/
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