Co-op Bank refreshes ethical policy

THE Co-operative Bank has updated its ethical policy and is vowing to shun doing business with payday lenders and firms promoting “irresponsible” gambling.

The bank, which has had a turbulent last 18 months, polled more than 74,000 customers to come up with the update to the policy which was first launched 20 years ago.

It said it had turned away business worth £1.4bn since launching its ethical policy in 1992, and that figure will increase as more companies are refused funding.

Niall Booker, chief executive of the Manchester lender said the new measures represent an “important step” in rebuilding customers’ trust in the bank – which is now only part-owned by The Co-operative Group after a near-collapse in 2013.

The bank will continue to ensure that it doesn’t use customers’ money to finance businesses or organisations which go against their ethics and values in areas such as human rights, the environment, international development, and animal welfare.

New areas of ethical concern highlighted by customers,  which have emerged since the policy was last updated in 2009, include payday lending and gambling, while  the bank said it would be “extending its commitment not to finance companies or organisations which do not responsibly pay tax to include the UK or elsewhere.”

Mr Booker said: “We know that we still have much more to do to get the Bank back on track and we know we have made our share of mistakes in the past, but the re-launch of this policy is an important step in rebuilding The Co-operative Bank as we listen to our customers and rebuild trust.

“We began the journey a year ago by strengthening the Bank’s capital and liquidity, simplifying the business and focusing on individual and small business customers.  We have made some good progress in these key areas. More recently we have begun reinvesting in the brand and successfully launched our advertising campaign focused on our values and ethics.”