If you want to live ethically, start with your bank account

Moving your money is an opportunity to make the banking system as a whole better, writes Co-operatives UK's Ed Mayo.

Do you have a bank account? If so, congratulations. You have a vote in what kind of economy the UK has moving forward.

This week is National Ethical Investment Week, an event which over recent years has become a great way to celebrate the mix of green and ethical funds open to those with the money to invest.

A bank account isn't usually considered as a classic investment product. But if we are going to improve the ethics of the world of finance, it is a good place to start.

To begin with, any money you have in your account is invested by your bank. It is not an investment that you see, but for every pound on deposit, your bank can lend a multiple of this in the wider economy. Taken together, as UK consumers, our bank accounts have money in credit at the end of a typical day of around £100bn.

A number of current accounts do now pay direct interest for the money you hold, even if it is still only a small proportion of conventional accounts that pay more than 0.5 per cent interest.

But there is another reason to consider where you hold your bank account, because it is the building block for the wider financial services sector. We can't complain that banks are less than fully ethical if we don't ourselves consider ethics when we choose who to bank with.

Current accounts are a cash cow for the big banks. One way or another, they make £152 out of every bank account they have. This is more than they earn from savings and credit cards put together. 

Current accounts are also something that most people have a choice over. There are 64 million bank accounts in the UK. So, where only around 15% of people are investors in the sense of putting money into stocks, shares and pooled funds, 90 per cent of us have a bank account and can have a say through our money.

The Move Your Money campaign has emerged this year as a cause célèbre. Launched in February 2012, the campaign calls on people to switch their account, current or savings, away from shareholder banks that helped to cause the economic crisis, and towards co-operative and mutual banks, such as credit unions and building societies.

Because they are not owned by external shareholders, they can put the interests of their customers first. Worldwide, customer-owned banks have been far safer than shareholder and state-owned banks over the last five years. No less importantly, your money is reinvested locally rather than going into the global carousel of bonuses and high finance. If you switch banks to an ethical bank, your money is being used for good – so it is not just fair to you but fair to others.

Since the campaign launched, around half a million people have switched accounts. The UK had long been the country with the lowest switching rate in Europe. More than the actions of any regulator, the Move Your Money campaign, in tune with the times, has changed that. And it is still early days.

Madeleine is one I know of many that have switched to the Co-operative Bank in recent months. "The online banking is different, but it all meets my needs and the switching was pretty simple." The switching process is far smoother than people may fear. You ask your new bank to set it in train and within 10 days of the application being approved, all your standing orders and arrangements should be transferred and up and running. 

Sandra has switched to Nationwide, one of fifty building societies still operating in the UK. She found that "banks are only interested if you have a lot of money and, as pensioners we don’t have a lot. But Nationwide was different. I know they want your money, I’m not saying they don’t, but they have more time for you, to explain the ins and outs."

Credit unions, which are financial co-operatives for savings and loans, are also among the providers that have benefited from switching as the larger credit unions now offer current accounts or debit cards that give access to ATM networks.

Ethical Investment should not just be about feeling good or having something to talk about at a dinner party but changing the way the financial system works. The call to move your money is a genuine and positive opportunity to make the banking system as a whole better.

Make it the one thing that you do this week.

Ed Mayo is Secretary General of Co-operatives UK

The Move Your Money campaign outside a Barclays. Photograph: Getty Images

Ed Mayo is Secretary General of Co-operatives UK

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In Bangladesh, bat in hand, I list all the things that could go wrong

Not everyone gets to play cricket in Bangladesh but I still managed to notch up more worries than runs.

Back from Bangladesh. I picked up a stomach bug while I was out there, and possibly a heart bug, about which I’d rather not go into any detail at the moment, but both will get better as time passes. Meanwhile, as I lie in my bed of pain (the nasty stuff has stopped but I’m still getting the occasional painful ache in the guts), I have my memories.

I must say it was very odd to be treated like royalty while I was out there. (For those who missed it: I was invited to participate in the Dhaka Literary Festival, and saw no reason to refuse, especially after being bought an exceptionally good dinner by the main organiser.) The democrat in me feels shifty even when I’m addressed as “sir” in shops in the UK, so when, one day, on entering the campus at the Bangla Academy, I was actually saluted by a military policeman, I was somewhat taken aback. I wonder if I will see that look in the soldier’s eyes until my dying day: alert, respectful, possibly a bit unhinged. Anyone saluting me must be a little off their rocker, but then how was he to know what a cock-up of a human being I am?

Still, it was extraordinarily pleasant. The highlight was, of course, the cricket match, in which I was invited to play for a scratch team of five from the Authors’ XI, plus two extra lads from the local college, or perhaps affiliated to the local team, the Khulna Titans, whose boss presented us all with caps. I’m wearing mine even as I write these words. I find it soothing.

At the time, though, I was feeling most unsoothed. I found myself going through a list of worries. I should point out that I often start to worry when I start descending the staircase to my own front door – and I was, at this point, roughly 5,000 miles from my front door.

So here are my top ten worries on the way to, during and after the match. I present them in chronological order of beginning to freak me out.

1) Getting shot by terrorists. (That police escort does make one stand out in a crowd, and this lot didn’t seem to be carrying any guns.)

2) Being bitten by one of the dogs lounging around the side of the pitch and having to make the choice between having a series of terribly painful rabies shots, or having rabies.

3) Being stung by a wasp or something on the field and going into anaphylactic shock.

4) Being hit in the mouth by a bouncer and having to go to a hospital to have my teeth crammed back in somehow.

5) Making a huge mow at a full toss not quite as outside the off stump as I’d suspected it was, and missing and being bowled by it.

6) Dropping a catch . . .

6a) . . . and having the ball slam into my mouth etc (see 4).

7) Getting sunstroke/sunburn.

8) Being bitten by a dragonfly, or a swarm of them, while on the pitch. There were loads of dragonflies, for some reason, but they were rather drab. Maybe they weren’t dragonflies, but they flew in the same manner.

9) Throwing the ball back to the keeper in an unmanly or generally disappointing fashion.

10) Being stuck in traffic on the way back for ever and ever, and so missing the event I was scheduled to chair later in the afternoon.

As it is, only number 5) transpired. And maybe a bit of 9). However, I at least made one rather streaky run and so am now able to make the hilarious joke that I have scored on the subcontinent. I marvelled at the state of the pitch: it looked like very fine-textured, pliable tar, or mud baked halfway to being a brick, but soft enough for the spikes on your boot to make a neat hole. Still, it was loads better than the poor neglected pitches at Dogshit Park in Shepherd’s Bush. And I thought of my father, who would have been strangely proud of me for having played in so far-flung a place, and wished that he was still around so he could hear my news.

And so back to London. I was greeted, as I stepped, in my summer linens, from the Heathrow Express at Paddington to the cab rank (I was too tired and sick for public transport), by a blast of chill rain, and shivered as I turned on the cab’s heater. Once again I seem to have fallen in love with a place new to me, and I begin to get indignant at the fact that the weather gets miserable in the UK.

There might be millions of poor people in Bangladesh, but not a single one of them is living in fear that one night they might freeze to death while sleeping out of doors. 

Nicholas Lezard is a literary critic for the Guardian and also writes for the Independent. He writes the Down and Out in London column for the New Statesman.

This article first appeared in the 01 December 2016 issue of the New Statesman, Age of outrage