The new giving: Impact banking is fishing at the wrong end of the market
Billions of euros are waiting to be given a new sense of purpose. But the topic of green and social investing is precisely where it would work: with wealthy customers.
A friend of mine received unusual mail. So did 35,000 other customers of the sustainable Triodos Bank. It's a termination letter. The bank is giving up. In Germany, the management board announced that it will not be possible to achieve a relevant size with its offering in the foreseeable future.
One could conclude that there is not enough demand for green and social investments in Germany. The truth is different: The issue has structural problems as a mass business. But it is precisely where it would work that is lacking: among wealthy customers.
Triodos is not alone. Among the churches, Pax Bank and Bank für Kirche und Caritas have merged. The digital bank Tomorrow shrunk healthily in 2025, but its last annual financial statements are still deep red. Customers whip out the beautiful debit card made of wood, but invest their assets elsewhere.
The investment universe is getting larger at the top. Growth is not the problem. The niche prime GLS Bank now has 388,000 customers and a volume of 11.6 billion euros, but with 24 cents per 100 euros of balance sheet total, it only earns a third of what other cooperative banks achieve.
Translated by urgent.news. Machine-written — may contain errors; check the original before relying on it.
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