bank mecu - responsible banking

bankmecu works to develop products that reflect bankmecu’s socially responsible values, appeal to bankmecu’s strategic markets and enhance economic, social and environmental wellbeing within bankmecu’s communities of interest. This requirement is written into the formal product development process.

bankmecu regards climate change as a key ethical, social, environmental and economic issue. As a socially responsible provider of finance for houses and motor vehicles, both of which produce greenhouse gases, bankmecu appreciates its opportunity and obligation to influence action that reduces the risks of climate change for current and future generations. It is committed to making a positive contribution to finding long-term solutions to the problems causing and resulting from a changing climate.

Further, bankmecu anticipate that any increases in the cost of living or economic downturns driven by climate change may have an impact on credit quality and bad debt losses. If climate change were to devastate the environment and economy then bankmecu, like all businesses, would be negatively impacted. In this situation, it is believed that bankmecu’s conservative lending approach will see the Company better placed than many peers. bankmecu appreciates there are economic opportunities as well as community improvements available from addressing climate change.

bankmecu has developed a number of loan products with features specifically designed to encourage borrowers to make more environmentally responsible choices: 

• goGreen® Car Loan, providing pricing incentives for safer, energy efficient cars as well as the offset of carbon emissions generated by all cars financed by bankmecu during the term of the loan
• goGreen® Home Improvement Loan, providing pricing incentives for the installation of efficiency measures in the home
• goGreen® Home Loan, providing pricing incentives for the construction of 7 star + houses
• eco-pause, providing a home loan feature to encourage the installation of energy and water efficient appliances within the home
• biodiversity offsets for new home construction loans
• environmentally responsible plastic debit and credit cards
• double sided customer statements or electronic statements; and
• an e-newsletter.

bankmecu also provides features with loan products that contribute to social welfare: 

• Premium First Home Buyers Loan, providing a low ongoing interest rate and other socially responsible home loan features. For example, Family Loan Repayment Pause and Eco Loan Repayment Pause
• project finance for community housing organisations
• project finance for aged care housing developments in regional Victoria
• Family Loan Repayment Pause providing a loan pause when a new child enters a family
• 100% no more marketing guarantee on all credit card products
• conservative credit approval policies to ensure borrowers can afford credit
• assistance for borrowers experiencing financial hardship; and
• exemptions from transaction fees and charges for community sector organisations and disadvantaged individuals.

bankmecu lending policy requires careful consideration as to whether customers can afford their loan, which minimises any possibility the loan will cause hardship. bankmecu does not provide pre-approved increases in credit limits on credit cards or provide incentives which encourage customers to increase their level of spend on credit cards.

These products represent an opportunity for customers to invest their money responsibly.