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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Royal Bank of Scotland (RBS)
Green/Ethical Products
- Basic Account
- Carbon offset payments
- Carbon Reduction Fund
- Small Scale Renewable Energy Fund
Ethical Lending or Insurance
RBS plc is part of the RBS Group. RBS Group’s Policy states:
“It is our responsibility to minimise these risks and to enter into lending relationships with companies who share our commitment to responsible business practices.”
Based on the information in its 2012 Sustainability Report, RBS Group places heavy restrictions and requires enhanced due diligence for higher Environmental, Social and Ethical (ESE) risk companies in specific sectors. These sectors include power generation, gambling, defence, oil and gas, mining and metals, and forestry.
The group refuses to provide financial services to “to companies involved in either the production, sale or stockpiling of highly controversial weapons including cluster munitions and anti-personnel landmines (including bespoke components) banned under international agreement ratified by the UK.” See page 32.
However, the group does not refuse outright to lend money to companies operating in other areas typically considered to be unethical.
RBS Group’s positions on Environmental, Social and Ethical (ESE) risk companies are approved by a Senior Risk Committee and are endorsed by the Group Sustainability Committee (GSC). These positions are reviewed at least every two years.
No evidence found of the Group’s ethical lending policy in action.
Human Rights
RBS Group’s position on human rights states that the group assesses each lending, investment and services decision on an individual basis through its defined risk and credit committee procedures and take into account relevant social, ethical and environmental issues as a part of that process. See RBS Group Position on Human Rights.
Regarding its supply chain, RBS Group’s Human Rights Policy expects that suppliers should support and respect the protection of internationally proclaimed human rights and make sure they are not complicit in human rights abuses. They should not be complicit in discrimination child labour, or any form of forced or compulsory labour.
Human rights modules have been built into relevant compulsory online training programmes for RBS Group employees. In addition, client specific human rights risk training is delivered to risk professionals and appropriate employees across the Group.
Financial Exclusion
RBS plc provides the following:
- MoneySense: a free online information resource to help individuals with better money management
- Basic Bank Account with no overdraft or credit facilities
No evidence that RBS plc provides direct financial support to or engages in partnerships with Credit Unions and CDFIs (Community Development Finance Institutions).
However, in 2011, RBS Group launched its sponsorship for the Community Development Finance Association (CDFA) “Change Matters 2” performance framework, aimed at raising professional standards in the Community Development Finance Institution (CDFI) sector. The framework is one of the CDFA’s five priority commitments to build the CDFI sector, attract more investment for their members and in doing so increase access to affordable finance across the UK.
In addition, the bank group provided £5 million in funding for a new 'Community Business Loan' which was launched in October 2011. CDFIs can apply for loans of between £200,000 and £1m.
NatWest and RBS plc maintain over 4,000 ATMs and 19 Mobile Branches which operate in Scotland, England and Wales (covering 7,000 miles, making 425 stops, and serving 357 communities. The banks also provide a flying air service to the Scottish Isles, where no other banking service is available.
RBS plc has fitted its branches to be handicap accessible and provide induction loops at counters and during interviews.
RBS plc cash machines have audible tone prompts and newer machines have been installed at height suitable for wheelchair access.
For telephone contact, the bank uses Text Relay and Minicom numbers.
For customers with visual impairments, RBS Bank provides:
- Statements, brochures and general correspondence letters, information and other literature available in Braille, large print or audiotape
- PIN numbers provided in Braille
RBS plc’s parent company, RBS Group, has launched RBS Inspiring Social Enterprise. The Group’s Micro Finance Fund is an independent charity that was set up to lend directly to the social enterprise sector. The fund approved over £3 million for loans in 2012. See page 29.
No evidence found that the bank invests in or lends at lower rates to financially excluded communities.
Environment
This RBS Group Environmental Policy, which applies to the whole of Royal Bank of Scotland Group and its subsidiaries, covers the key areas of climate change, energy efficiency, water use and waste management.
The bank appears to be committed to continued improvement of its environmental performance.
In 2012, the bank achieved a 5.5% reduction in its energy use, putting it on track to achieve its 2014 target of -15%. It continues to purchase electricity from renewable sources in the UK with 66% of electricity from renewable sources in 2012.
Carbon Neutral
No commitment to become fully carbon neutral was found for RBS plc.
However, RBS Group launched a £200m Carbon Reduction Fund in 2012 to finance the introduction of energy efficiency measures for customers. See page 29.
Equal Opportunities
RBS plc’s parent company, the RBS Group, has a diversity policy takes into consideration the key equality issues of physical characteristics, such as gender, race, age or disability, sexual orientation, beliefs and opinions.
Women on the Board
RBS Group:
4/12 women hold top level board positions (33.3%)
Student Banking
- Student Contents Insurance
Student Insurance
- Student Royalties Current Account
- Student Current Account
- Graduate Current Account
- Bank Accounts for International Students
- FlexiLoan for Graduates
Student Credit Cards
- Student Credit Card
Voluntary Standards & Initiatives
No membership of any relevant charters or initiatives found for RBS plc.
However, its parent company, RBS Group, is a member of or signatory to the following relevant charter or initiatives:
- UN Global Compact
- Equator Principles—member of Equator Principles Steering Committee
- UN Guiding Principles for Business and Human Rights (Ruggie Principles)
- Carbon Disclosure Project
- Dow Jones Sustainability Index
- FTSE4Good Index
Charitable Giving
RBS plc supports a number of charities throughout the year, through volunteering, fundraising in all its RBS branches and accepting donations from members of the public. The key charitable campaigns supported throughout 2012 were: Comic Relief, STV Appeal, Macmillan’s Biggest Coffee Morning, Wear it Pink and BBC Children.
In 2012, RBS Group reported that its community programmes are broadly focused around supporting enterprise, community engagement and financial education. Its key programme, MoneySense, is aimed at teaching young people how to manage their money and prepare for the financial decisions in life.
In 2012, RBS Group invested £57.2 million in the communities around the world through cash donations, staff volunteering, in kind contributions and management. See page 34 for a breakdown of figures.
Royal Bank of Scotland (RBS)
- Current Accounts
- Savings
- Investments
- Credit Cards
- Loans
- Mortgages
- Insurance (Home, Essential Contents, Car, Life, Travel, Income)
- Private Pension Fund
- Student Royalties Current Account
- Student Current Account
- Graduate Current Account
- Bank Accounts for International Students
- Student Credit Card
- Student Contents Insurance
- FlexiLoan for Graduates
Royal Bank of Scotland (RBS)
Royal Bank of Scotland (RBS)
36 St Andrew Square
Edinburgh
EH2 2YB
