The Future of Banking is Green
June 01, 2009
Citizens National Bank, a bank with branches in Illinois and Indiana, has taken the idea of green banking to the next level. Typically, when we talk about green banking we refer to banks that reducing the amount of paperwork that they generate. They can accomplish this by offering online banking services which include many of the following:
Paperless checking accounts
Direct deposit
Online bill payment
Online statements
Remote deposit
Online check and deposit images
Linked accounts
Integration with accounting software
The banks that offer these green banking services can be some of the largest banks in the world. They advertise their products as "green", but their corporate policies may be far from environment-friendly.
Citizens National Bank is the prototype green bank of the future. Here is what they have done to be eco-friendly with their new branch in Terre Haute, Indiana:
- their bank building is manufactured to a large degree from either recycled or renewable materials
- the white roof of the bank reflects sunlight away keeping the building cooler
- the building's heating and air conditioning system uses sensors to track the number of people in each room and adjusts the temperature accordingly
- the roof of the building can collect rainwater to store and use for irrigation
Citizens National Bank has also instituted several employee policies and benefits to encourage employees to walk or ride to work. This is a bank that has made a commitment beyond banking.
Green Banking and Rates
All of the above sounds great, but what does a green bank have to do with the rates on your money market or checking account that you can earn? Let's talk finances. Remember it is likely that a green bank will earn tax credits and save money from the cost of maintaining their energy efficient building. This could mean less bank fees to pass on to their customers. In might be a stretch, but does a green bank also make better lending decisions due to their apparent heightened social awareness? It is certainly possible. Green banks embrace online banking because it reduces paperwork. It also reduces their operational costs. This could help out the deposit rates they offer their customers becasue the banks could be financially healthier than their old-fashioned energy-consuming counterparts.
All of the reasons stated above are important, but the primary reason that a green bank is likely to offer above-average rates on their savings accounts, checking accounts, money market accounts, and CDs is that the bank is new or relatively new and probably a smaller sized bank. You will not see Wells Fargo Bank or Bank of America convert their thousands of branch buildings into eco-friendly buidlings. Only small or new banks that can take on a true green banking initiative. It just so happens that small and new banks are the banks that are more likely to run great rate deals to attract new depositors. Keep your eye on the MoneyRates.com Green Banking reports because green banking and good rates are likely to go hand-in-hand in the future.
