Page 36 - Banking Finance JANUARY 2017

ARTICLE

 Scale-up clean energy solutions as fast as possible, maxi- 3. Remote Deposit Capture: Remote Deposit Capture
mizing clean electricity and efficiency gains. (RDC) is a system that allows a customer to scan
cheques remotely and transmit the cheques images to
Evolution of Green Bank: a bank for deposit, usually via an encrypted Internet
connection. When the bank receives a cheque image
First Green Banking was founded in 2009 in the state of
from the customer, it posts the deposit to the customer's
Florida. Based in Eustis and Clermont, Florida, USA, First
account and makes the funds available based upon the
Green Banking is a customer-driven community bank pro-
viding personalized service,localized decision- making and customer's particular availability schedule. Banks typi-
cally offer Remote Deposit Capture to business custom-
proven technology by promoting a positive environment that
ers rather than to individuals.
is acceptable to the community.
4. Green Car Loans: Many green car loans encourage
State Bank of India, India's largest commercial bank, took
the purchase of cars for below market interest rates,
the lead in setting high sustainability standards and com-
which demonstrate higher fuel efficiency.
pleted the first step in its 'Green Banking' initiative with Shri
O.P.Bhatt, Chairman, SBI inaugurating the bank's first Wind
farm project in Coimbatore. Recent Green Banking initia- 5. Green Credit Cards: A green credit card allows
tives include a push for solar powered ATM'S, paperless cardholders to earn rewards or points which can be re-
banking for customers, clean energy projects and the build- deemed for contributions to eco-friendly charitable or-
ing of Wind mills in rural India. ganizations. These cards offer an excellent incentive for
consumers to use their green card for their expensive
Green Banking Financial Products: purchases.
Green banking helps to create effective and far-reaching
market-based solutions to address a range of environmen- Green Banking Opportunities:
tal problems, including climate change, deforestation, air A Green Bank requires each of its functional units and ac-
quality issues and biodiversity loss, while at the same time tivities to be Green- environmentally friendly and help to
identifying and securing that it benefit customers. Some of improve environmental sustainability. Several opportunities
Green banking financial products includes: Green mort- are available for banks to go green in their functional units
gages, online banking, remote deposit capture, green car and activities. Key among them are:
loans and green credit cards.
1. Green Mortgages: In general Green mortgages also
known as Energy Efficient Mortgages (EEM'S), provides
retail customers considerably low interest rates com-
pared to market rates for clients who purchase new en-
ergy efficient homes or invest in retrofits, energy effi-
cient appliances or green power. Banks can also choose
to provide green mortgages by covering the cost of
switching a house from conventional to green power,
as well as include this customer benefit when market-
ing the product.

2. Online Banking: Online banking, also known as
internet banking, e-banking or virtual banking, is an
electronic payment system that enables customers of
a bank or other financial institution to conduct a range
of financial transactions through the financial
institution's website.

36 | 2017 | JANUARY | BANKING FINANCE

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