Understanding Better Banking Options for a Sustainable Future

One of Third Act's central goals is to organize people who are 60 and older to help build a sustainable world for generations to come. The first step in our movement is to halt the flow of money financing the climate crisis. As Baby Boomers who hold 70% of the nation's wealth, the time is now for us to say we don't want our own money to be invested in an unlivable world. Third Act launched the Banking on our Future campaign to help elders join the movement to move our money and credit cards away from dirty, fossil fuel-supporting banks to better banking options. Our friends, Jessy Tolkan, Creator of BankForGood.org, and Fran Teplitz, from Green America, have been working on Green Finance initiatives for a few decades and are pleased to share with you the following resources to help aid Third Actors in their bank switching journey.

Our friends, Jessy Tolkan, Creator of BankForGood.org, and Fran Teplitz, from Green America, have been working on Green Finance initiatives for a few decades and are pleased to share with you the following resources to help aid Third Actors in their bank switching journey. Watch a recording of our Responsible Finance Series Event #2: Banks and Credit Cards here.

When it comes to moving your accounts to a better bank, the first question is often “What is a better banking option?” Fortunately, there’s a range of great banks and credit unions to choose from, so you can find one that works for you in terms of both services and values.

Momentum for better banking is building nationally and around the world. One of many resources for finding banks with a commitment to economic, social and environmental sustainability is the Global Alliance for Banking on Values. The Alliance aims to transform banking so that it plays positive roles, especially with respect to the climate crisis.

 At Green America, we promote diverse financial institutions in our banking map so you can find a bank or credit near you – or consider mobile banking wherever you are!  The Green America banking map includes financial institutions with solid social and environmental practices that pass our certification program, which includes avoidance of financing of the fossil fuel industry, clear investment policies, responsible subprime lending policies, and more. 

When thinking about switching, a good place to start is by considering a bank or credit union with a genuine, proven commitment to community development. There is actually a federal certification program, through the Treasury Department, for financial institutions that support economic development in low income and marginalized regions. These are called “community development financial institutions” (CDFIs). The Green America banking map includes all of these federally certified banks and credit unions across the country. Your deposits can make a real difference in economically struggling communities, urban and rural.

Because of complex discriminatory policies that exist within local governance, banking systems, and the finance industry (i.e. redlining, gendered access to wealth, and the criminalization  of queerness),we do not see the reflection of our country’s diverse demographics in this sector that is overwhelmingly cis-gendered, hetronormative, and white man-led. To help change this, consider choosing a “Minority Depository Institution” (MDI). MDIs meet a federal government definition and provide an opportunity to help build broad-based economic opportunity and prosperity. Whatever choice you make – always be certain that your new bank is FDIC-insured or that your new credit union is NCUA-insured.

The Green America map also includes all the members of Inclusiv, a national association of credit unions whose members are also dedicated to providing opportunity for people with low-to-moderate income nationally. Community development credit unions are nonprofit, cooperatively owned, and federally regulated. Banks with a strong commitment to community development can also be found through the Community Development Bankers Association.

To power to change this, consider choosing a “Minority Depository Institution” (MDI). MDIs meet a federal government definition and provide an opportunity to help build broad-based economic opportunity and prosperity.Whatever choice you make – always be certain that your new bank is FDIC-insured or that your new credit union is NCUA-insured.

Building sustainable banking options that are least extractive to local communities is very important and only the first leg of the bank switching effort marathon. It is vitally important to understand the many barriers connected to bank switching, whether they be operational or mental, that continue to make moving your money a heavy lift for the everyday individual. It is also important to know how this process can be a tremendous support for the movement towards building more sustainable communities and generational equity.

We know that taking on the task to shift your money is one that may take time. As you proceed through your bank switching process, Bank for Good offers public access to guides, articles, and resources designed to guide people towards understanding green finance initiatives, with the option to sign up and join a community of people interested in additional resources, support and reminders.

The Bank for Good website offers visitors a myriad of resources that help unpack the importance of banking with institutions that do not invest in fossil fuels or support initiatives that are harmful to building sustainable communities, such as funding private prisons.

Using this wealth of research, Bank for Good created a Better Banks tool that allows you, the user, to select the types of offerings you need from a bank. The tool then sifts through the Bank for Good database to find banks and credit unions that fit your needs and do not harm the environment or our communities. As Bank for Good continues to expand the number of institutions listed, people will be given more values and actions aligned options of where to house their money.

For more information, check out the 10 step guide that Green America has put together to help people plan their bank switch. For the purposes of the Responsible Finance Event #2: Better Banks and Credit Cards, you can keep your focus on Step #1 – the exciting process of identifying the bank or credit union that will allow your deposits or credit card – to work for the kind of world you want!

Green America’s Guide to Socially Responsible Investing & Better Banking provides an overview of options and background information about the importance of you joining our money moving movement! An easy entry point to this movement could be something as simple as just changing your credit card. Since banks process credit card transactions – how about using a credit card linked to a better bank or credit union? You can find a list of credit card options here.

And If you need a little more inspiration, enjoy these short stories from people who have made the switch and want to encourage others – like you!

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About the authors:

Jessy Tolkan is the President and CEO of Drive Agency. With nearly 20 years of campaign and movement experience, her passion and drive for transformative change have taken her around the world and across issue sectors in pursuit of building the necessary power to win. Prior to founding Drive Agency, Jessy served as Partner at PURPOSE and Co-Founder of Purpose Labs, a ground-breaking approach to campaigning and collaborating with philanthropy to drive change. During her tenure at Purpose, she helped expand their global footprint by opening campaign offices in India, Brazil, Eastern Europe, Indonesia, and Kenya. The Purpose Climate Lab, where Jessy remains a Collaborator and Senior Advisor, employs 40staff globally, and has raised and invested over 40 million dollars in climate campaigning infrastructure over the past 6 years. Over the course of her career, Jessy has built and led a series of powerful progressive institutions, including her role as Executive Director of the Energy Action Coalition, as the Co-Executive Director of the Citizen Engagement Laboratory, and as Senior Advisor to the Working Families Party. Jessy has consulted with leading social change organizations in the United States and around the world including: Progressive Change Campaign Committee, GetEqual, HeadCount, 1sky, 350.org, Groundswell, Web of Change, and Wellstone Action, The Women’s Forum for the Economy and Society, and Global Witness. She’s been featured in Time Magazine, Glamour Magazine, The New York Times, Hard Ball with Chris Matthews, and Vanity Fair Magazine. Rolling Stone Magazine named her one of the 100 agents of change in America.  Jessy Tolkan received her B.A. from the University of Wisconsin-Madison in Political Science.

 

Fran Teplitz serves as the Executive Co-Director of Green America, focusing on Green America’s programs in green business, socially and environmentally responsible banking and investing, and public policy. Green America is a nonprofit membership-based organization in Washington, DC that involves consumers, businesses, and investors in economic strategies to advance positive social and environmental change. Fran joined the organization in 2000. Fran’s roles include serving as the Director of Green America’s Green Business Network® and Director of the Responsible Finance Program. Her work on impact investing includes community investing and banking, shareholder action, and fossil fuel divestment. She also manages Green America’s role in coalitions related to sustainable business and economics, climate change, and other policy issues. Fran worked with Peace Action and the Peace Action Education Fund for seven years before joining Green America. Prior to Peace Action, she worked on U.S. policy toward Central America.  She holds a Master’s Degree from the Institute for International Peace Studies at the University of Notre Dame and earned her undergraduate degree from Washington University in St. Louis in Political Science.