CBA is once again showing it's down with the cool kids... so let the millennials roll in.
👉 Background: CommBank is Australia's largest bank - and it's got the biggest home loan book in the country. But CBA ain't about to quit while it's ahead.
👉 What happened: CBA is getting its green on 🍀. It will offer lower interest rates on mortgages that meet its environmentally-friendly standards (i.e. solar panels, no gas appliances). The plan is to attract younger customers.
👉 What else: It would be the first big, traditional lender to enter the green home loan space... but probably not the last, 'cos we foresee some tough competition up ahead.
💡 Over the last decade, big banks have come under fire for financing fossil fuel projects that cause significant environmental damage.
💡 Figures from NAB and Westpac show mortgages are the second-biggest source of the banks' financial emissions. And CBA have the largest mortgage exposure of all.
💡 So, given the pressure banks are facing to turn to more environmentally-friendly pursuits... we can see CBA's motivation to join the green home loan game. Ready Player 2.
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