Bank loans for green cars in Denmark increase by 76% and Danes want even more green loan options
The number of bank loans issued for electric, plug-in hybrid and other low-emission cars grew from 5billion DKK in 2021 to 9billion DKK in 2022, according to a new report from Finans Danmark.
But the increased popularity of green loans doesn't only apply to vehicles. Loans issued for all green purposes, including green initiatives for properties, renewable energy & recycling, totalled 691DKK billion in 2022, an increase of 143billion from 2021.
In fact, 6 out of 10 Danes believe that it is either a very good or good idea that banks and finance institutions offer a wider selection of loans for electric cars or energy improvements to the home.
The figure is even higher among the young; 73% of people under 30 think that the financial sector should support environmentally friendly solutions.
"The Danes have recognized the fact that the financial sector is an important engine in the sustainable development development of society. So it's not surprising that the younger generation is particularly concerned, since it is their future at stake.
"It also clearly emphasizes that if you want to be an attractive bank for future customers, it is important that you have attractive green products," says Ulrik Nødgaard, CEO of Finans Danmark.
How Monthio can help banks offer more green financing solutions
Monthio is a creditworthiness assessment solution for banks and other financial institutions that makes the process of applying for a loan quicker and easier for both the borrower and lender.
Monthio's intuitive creditworthiness solution uses open banking and other financial data to provide a 360 financial overview in real-time, including income and expenses verification and extensive insight into risks and warnings. This means that loan applicants do not manually have to enter this information, decreasing the effort needed to finish an application significantly.
All the consolidated data is presented in one easy-to-use dashboard, meaning quick and easy decision making for credit advisors at banks or other financial institutions.