Ethical Stance Keeps e-Bank's Customers Smiling

The success of UK-based online bank smile reflects not only its service levels and interest rates, but also its ethical stance, according to recent customer research by Nunwood Consulting. The research, among credit card consumers, provides pointers for banks wishing to remain competitive in an increasingly crowded market.

smile has consistently outperformed other banks in UK customer satisfaction ratings. In this survey, 93% of smile's credit card customers rated the bank's services as 'well above what I expected' - however, 66% of smile's credit card customers cited the bank's strong ethical stance as a key reason for joining up with the credit provider.

The bank's ethical policy, which has been developed in consultation with its customers, ensures that smile only invests customers' money in ethical organisations and entities. The policy restricts the investment of funds in organisations which have a negative reputation over issues such as human rights, the arms trade, animal welfare, ecological impact and genetic modifications.

According to the bank's Credit Card Manager Neil Owens, 'People are becoming more educated in their credit card decisions, and as a result they are choosing providers that can promise more than just a low interest rate. The survey makes it clear that good rates, great service and straightforward ethical principles can be combined with great success'.

Clare Bruce, MD of Nunwood Consulting says that too few companies realise the full value of having a high profile ethical stance. 'As straight product offerings become more similar, the profile of the company and brand behind it becomes increasingly important. However, in order to be sustainable the ethical standards must be adopted in all parts of the company, and be communicated effectively to the customers. It is the accomplishment of this which has made the smile approach so successful'.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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