Savers find sanctuary from mainstream mayhem
Wednesday 24 September 2008
In turbulent times Ecology Building Society bucks industry trend as savers show confidence in a small, secure organisation committed to an ethical and personal customer service.
Whilst elsewhere the industry is reporting difficulties in attracting new savings the Ecology is experiencing new levels of consumer confidence and investment. Whilst the British Banking Association reports annual growth in personal deposits at just 4% the Ecology has seen inflow grow by 5.7% during 2008 as their range of ecological savings products continues to be an attractive proposition for savers.
So, why is a small society such as the Ecology bucking the industry trend?
At the Ecology, the majority of members' savings are used to fund the Society's growing portfolio of green mortgages. Designed to improve the environment by promoting ecological building practices and sustainable communities these mortgages are only available for properties that have a positive environmental benefit. So, whilst receiving a good return on their investment, savers are secure in the knowledge that they are helping to build a more sustainable future - they are opting to invest ethically.
More than that, as a small building society the Ecology operates a relatively simple and very transparent business model. Unlike larger financial institutions the Society only lends money that can be afforded from its pool of member savings. And even then, a proportion of its assets are always kept in liquidity to ensure that withdrawal requests can always be met. This means that the Ecology Building Society does not and has no need to become intertwined in the complexities of global financial markets to manage its portfolio.
Whilst the size of the Society enables the delivery of personal customer service, its ethics and simplicity by design present an attractive and trustworthy proposition for savers who are recognising that small really is beautiful.
Ecology Chief Executive, Paul Ellis comments, "Recent turmoil is challenging consumers trust in the financial organisations they deal with. Many savers are recognising that our very open, honest and simple business model ensures that the Society is well protected from the interdependencies of global markets and as such our exposure to current changes is extremely limited. The Ecology is a safe, secure and ethical alternative to the increasing uncertainties in the mainstream market".
