Frequently Asked Questions (FAQs)

Look here for answers to commonly asked questions about Islington Bank Better.

What does Islington Banks Better define as a good bank?

We define a good bank as one that is fully transparent about its investments, owned by its members rather than shareholders to ensure stronger oversight, and guided by policies that prohibit support for exploitative industries. This means it does not invest in, provide loans to, or underwrite bonds for sectors such as the arms trade, fossil fuel extraction, or migrant detention centres.

Is bank account switching the same as divestment?

No. Divestment means that an organisation's investment portfolio is free from investments in unethical companies. Bank account switching means moving a bank account to a more ethical bank. Bank accounts are not directly related to investments. However, banks can also manage an organisation's investments. So, an organisation with a bank account at an unethical bank might also have its investment portfolio managed there, and may choose to move both accounts together. But that doesn't necessarily mean the organisation has invested in unethical bank shares.

Does the money in my organisational or private bank account get given directly to exploitative industries?

A bank isn't allowed to directly use customer deposits to invest in, provide loans to, or underwrite bonds. However, by banking with unethical institutions, we strengthen their business and reputation — and this is what our collective action aims to challenge.

Do these banks even care about the accounts of small organisations?

The power of switching bank accounts lies in collective action. Our initiative is part of a wider 'Bank Better' movement across the United Kingdom. By working together, we can make a substantial impact — stripping unethical banks of their social license and reducing their customer base, which they rely on to generate interest income and to strengthen their position when applying for loans from investment banks.

Do companies in exploitative industries care if banks loan to them, given their huge profits?

Only commercial banks can provide the financial services these companies need to survive. By challenging the banks, we directly target the systems that enable them.

My organisation has a mortgage with a bank. Can it switch?

Ask your organisation for details of its mortgage agreement. In most cases, mortgage payments can be made from any bank account. If not possible right now, your organisation can still move some of its accounts to a different bank, lobby their bank to amend its policy, and commit to switching banks once the mortgage is paid off.

My organisation's contract with a bank isn't up yet. Can it switch?

Ask your organisation for the details of its bank contract. Usually, there are no penalties for terminating the contract early. If there are, your organisation can lobby their bank to amend its policy and commit to switching banks once the contract ends.

Which banks link directly to my organisation's accounting software?
  • QuickBooks: Full list available here. Includes CAF Bank Online, Metro, Nationwide, Starling Bank, The Co-operative Bank, Unity Trust Bank, and Yorkshire Building Society.
  • Sage: Full list available here. Includes The Co-operative Bank.
  • Xero: Check if your bank connects with Xero by selecting 'Bank Accounts' in the Accounting menu and typing your bank's name. Live connections by region are listed here and include Metro, Starling Bank, The Co-operative Bank UK, and Triodos. Some banks, including Nationwide, require regular authentication here.
Where can I get further information about banks?

Ethical Consumer is a not-for-profit workers' co-op based in Manchester producing a magazine and database that ranks companies providing goods and services in the UK. While focused on individual consumers, it also provides useful information for businesses. Much of its work is available online free of charge, though detailed rankings and company info require a subscription.

Where can I get expert help with my organisation's banking arrangements?

Mother Tree is a consultancy business that researches ethical options for individuals and organisations for a fee.