Citizens Financial Green Deposits: Supporting ESG Commitments for Corporate Clients
Winner of Celent Model Bank 2022 Award for Corporate Product Innovation
Abstract
Transaction bankers consistently look at how technology can help them meet client needs. A quickly emerging need is environmental, social, and governance (ESG) products to appeal to clients seeking responsible banking and investment choices. Much of the evolving corporate banking product focus is on green corporate bonds, sustainable lending, sustainable supply chain, and green deposit accounts. Green deposits allow corporate clients to direct their cash reserves towards companies and projects expected to create a positive environmental impact.
Citizens Financial's Green Deposits solution enables commercial clients to demonstrate their commitment to sustainability. The solution allows clients to place a deposit in support of a lending portfolio for companies and projects expected to create a positive environmental impact. For each dollar deposited in a Green Deposits account, an equal amount is held in an environmental lending portfolio supporting renewable energy, sustainable water, and more. In addition, the innovative money market structure of Green Deposits, versus a more complex bond offering, makes it simple for clients to demonstrate an awareness and commitment to sustainability.