Student Finance Overview
If you buy Fairtrade goods, believe in human rights, or are concerned about climate change -
- put your money where your mouth is and open an ethical bank account too.
Financial institutions make all sorts of offers to get students through their doors, from discounts to vouchers to bags of freebies. But these short-term gestures can mask long-term issues.
How would you feel if your money was being used to prop up oppressive regimes, test cosmetics on animals or damage the environment?
What are the issues?
Before you open a new student bank account, or if you want to find out about your current bank’s green and ethical credentials, you should consider the following:
Lending
Banks don't just lend money to current account-holding customers, they also lend to large corporations, public institutions and even governments. Would you approve if your bank was lending money to a company with a poor track record on human rights or one manufacturing arms for use in war zones?
Climate Change and Environment
Financial institutions have an impact in these areas, not just in terms of who they lend to or invest in, but how they run their own operations. It is important to find out what your bank or insurance provider is doing to improve its environmental performance as a business: have they pledged to go carbon neutral for example? Or do they offer any green products to their customers?
Equal Opportunities
A lot of people believe that equal opportunity in the work place is now the norm, but there is still a massive pay gap between men and women doing the same jobs across most industries, including finance. Also the number of women in high level positions is still significantly lower. Not only that but some companies’ equal opportunities policies don’t take other key issues like sexuality and disability into consideration.
Financial Exclusion
There are an estimated two million adults in the UK without even the most basic bank account. Is your bank doing anything to address this situation?
For more details see our Financial Exclusion section.
Responsible Credit
Does your bank, credit card provider or insurance company take care to appropriately target and market its products? Does it offer assistance to customers in financial difficulty? Some credit card providers may not treat their customers responsibly – issuing cards to people who’ll struggle to make their repayments and not offering help to those who do fall behind.
What are the ethical options?
There are a few banks, building societies and insurance companies with well-recognised green and ethical credentials. The examples listed below for banking and saving also scored the highest marks on ethical lending in our research:
Banking
- The Co-operative Bank: this institution provides student banking, insurance and credit cards facilities and has an ethical lending policy that extends across all its business operations.
- Smile: this internet arm of the Co-operative Bank and also offers student accounts.
Saving
- Triodos: this bank offers green and ethical savings accounts. Its commercial lending is primary to green businesses.
- Ecology: this mutual building society offers a range of green savings accounts and mortgage options and its commercial lending is mainly to small, green businesses.
Insurance
- Co-operative Insurance
Insurance type: home, motor, life and health
This company offers a wide range of insurance products and has an extensive ethical engagement policy governing who it will provide cover to. - Climate Sure
Insurance type: travel
Climate Sure calculates the CO2 produced by flying overseas and pays for it to be 'offset' by funding sustainable energy projects. - Green Insurance Company
Insurance type: motor
This provider aims to offset your car's carbon emissions and offers discounts on greener cars/lower mileage. - Naturesave
Insurance types: home, travel, personal accident and illness insurance
This company puts 10% of its personal insurance premiums in a fund (Naturesave Trust) to benefit environmental and conservation projects. It also offers a free environmental performance review for commercial clients and aims to use suppliers that support sustainable business practices.
Credit Cards
Before signing up to a card you should check out the ethical credentials of its provider. Visit our credit card section for more information.
Your next steps
See our Next Steps Guide - Student Finance for information on finding the best green and ethical service provider for you, how to switch accounts and how contact your bank or insurance company about their policies.
Student Finance Search
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Direct Line
Green/Ethical Products
No evidence of any accounts, products or services aimed specifically at the financially excluded.
Ethical Lending or Insurance
Direct Line does offer commercial insurance services. No evidence found of any policy relating to insuring activities typically considered unethical.
Human Rights
Direct Line does offer commercial insurance services. No evidence found of any policy to avoid insuring companies that contribute to human rights violations.
However, Direct Line’s parent company, Direct Line Group, has in place a policy covering its relationship with suppliers. It’s Ethical Code for Suppliers states that it expects suppliers to adhere to the core International Labour Organization (ILO) standards, which ban the use of child labour and compulsory/bonded labour whilst protecting their right to non-discrimination.
Financial Exclusion
No evidence of any accounts, products or services aimed specifically at the financially excluded.
Direct Line works work with the Association of British Insurers and the Government towards the Flood Re scheme, to ensure insurance is available to those homes most at risk of flooding.
No evidence that the company provides direct financial support to or engages in partnerships with Credit Unions and CDFIs (Community Development Finance Institutions).
Direct Line Insurance offers a textphone service, Typetalk and documents available in large print, in Braille or audio tape for disabled customers.
No evidence found of Direct Line’s involvement in any microfinance projects.
No evidence found that the company invests in or lends at lower rates to financially excluded communities.
Environment
According to its website, the Direct Line Group’s environmental policy covers the key areas of climate change, energy efficiency, water use and waste management.
The company appears to be committed to continued improvement of its environmental performance.
Direct Line group aims to reduce its carbon footprint by improving energy efficiency within its facilities, minimising travel, encouraging change from employees, undertaking water and waste audits, encouraging reduction in car travel through improved travel planning, increased recycling initiatives and utilizing recycled paper.
Carbon Neutral
No commitment to become fully carbon neutral was found.
Equal Opportunities
No information found on the company’s diversity policy.
Women on the Board
Direct Line Group:
3/9 women hold top level board positions (33.3%)
Student Insurance
- Student car insurance
- Student travel insurance
Voluntary Standards & Initiatives
Direct Line Group is a member of ClimateWise, the global insurance industry initiative driving action on climate risk.
Charitable Giving
Direct Line Group donated £48,000 through its Community Cashback scheme, whereby employees are able to apply for an annual award of £250 for the charity of their choice.
The Group donated £112,000 through its payroll giving scheme, whereby the company by matching employee donations of up to £50 per month.
Direct Line
- Insurance (Car, Home, Travel, Pet, Breakdown, Landlord, Van, Business)
- Student car insurance
- Student travel insurance
