Green Business: Banks want in on Green Movement

A new article in the Chicago Tribune highlights some new “Green Banks” that are poppuing up over the Midwest and the rest of the United States. What makes a bank “Green”? Apparently, it’s the policies.

These Green Banks are offering lower rates for Green Entrepreneurs, Home Builders, and individuals who make the decision to purchase environmentally friendly vehicles. Also, pushing things like paperless banking and envelope-free ATM deposits as well.

Here are a few excerpts from the Chicago Tribune Article:

On June 2, GreenChoice received conditional regulatory approval, and it hopes to raise $13.5 million to $16 million in capital. GreenChoice expects to provide better terms for, say, a green builder, or a higher rate for consumers who opt out of receiving paper statements. The differential hasn’t been set.

It’ll also be pushing envelope-free ATMs and remote deposit capture, in which a business customer can deposit checks without visiting a bank. First Green Bank, which opened in February, offers zero-interest loans to workers who buy cars that get more than 30 miles a gallon.

A campaign to raise at least $20 million in capital at e3bank will be partly conducted online. The three e’s in its name stand for environment, economy and social equity.

Redstone Bank, which was renamed Green Bank in 2007, emphasizes home-efficiency projects. For example, a green home-improvement loan with a principal of at least $200,000 will receive annual rewards of $500. The bank’s Web site outlines required improvements, including water-saving dual-flush toilets.

Green Bank Chief Executive Geoffrey Greenwade noted that there are fewer delinquencies on green banking products because borrowers “tend to be higher income and better educated” and are “a little better at paying bills.”

Will these Green Banks stick around? It certainly seems that way. Individuals who are more concsious of the Planet are likely to be more conscious of their finances as well. I guess the only uncertainty is if the Banks can stay true to their “Green” principles.

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