Ethical banks in the UK: List of 10 providers

In this article, we’ll delve into what makes a bank or financial institution ethical, what we consider ethical banks in the UK and how to choose a banking provider that aligns with what you believe in.

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What makes a bank ethical?

An ethical bank typically prioritises positive social and/or environmental impact. You might also see ethical banking described as responsible banking or purpose-driven banking. It’s up to each bank to figure out what their ethical principles are, but all ethical banks pride themselves on being as transparent as possible about who they lend money to and where they invest.

What are the traits of an ethical financial institution or bank?

At an ethical bank or financial services company, profit isn’t the only goal. Instead, ethical banks in the UK are also focused on many of the following traits:

• Commitment to the environment and operating sustainably
• Paying employees at least the living wage
• Avoiding industries like tobacco, gambling and arms dealing
• Investing in the third sector, local community and voluntary organisations
• Total transparency about goals and investments

What about alternatives to UK banks?

There are also some ethical alternatives to banks in the UK, like Wise. Money provider Wise was founded on complete transparency when the two founders realised banks were secretly charging hidden fees to send money abroad. When you send money overseas with Wise, any fees are displayed completely upfront.

Not only is Wise an accredited living wage employer, but the business champions inclusivity both inside and outside the office, for example, supporting organisations investing in building sustainable communities across the world from Malaysia to Mexico.

Learn more about Wise

List of ethical banks and providers in the UK

There are many ethical banks in the UK focused on making a positive impact in the world, including those listed in no particular order, below.

Triodos Bank

A Certified B Corp, Triodos publishes details of every organisation they finance on their website,¹ and aims to invest only in opportunities driving positive environmental, social or cultural change.

The Charity Bank

The Charity Bank uses the money its savers deposit to make loans to UK charities, social enterprises and organisations with charitable purposes. So far, it has made £500 million worth of loans across a wide range of sectors and causes.²

Ecology Building Society

The Ecology Building Society provides mortgages for properties and projects that respect the environment and support sustainable communities.³ They stand for building a greener society in today’s world.

The Co-operative Bank

The Co-operative Bank was the first UK bank to introduce a customer-led Ethical Policy.⁴ The policy focuses on what the bank can do for the planet, people and community, including preserving animal welfare and promoting human rights.⁵

Nationwide

Nationwide is owned by its members, rather than shareholders, who pride themselves on doing the right thing for their customers, colleagues, communities and the environment.⁶ The bank has set out five Mutual Good Commitments and is committed to a net-zero future.

Cumberland Building Society

As well as never lending money to firms involved in fossil fuel production, the Cumberland Building Society gives 1.5% of their total profits to charity.⁷ They’re committed to kinder and fairer banking.

Coventry Building Society

Sustainability is at the heart of Coventry Building Society, which doesn’t lend to or invest in businesses that harm the environment, such as those in the fossil fuel industry.⁸ They are a Certified B Corp and aiming to be totally Net Zero by 2040.

Gatehouse Bank

Grounded in Shariah banking principles, Gatehouse Bank never invests funds to support the arms industry, alcohol, tobacco, adult entertainment or gambling.⁹ They support the community through fundraising and cooperative giving, and have also signed the UN Principles for Responsible Banking.¹⁰

Tandem Bank

Described as the “UK’s greener digital bank,” Tandem never invests in fossil fuels or destructive industries. The bank instead uses money to fund greener home improvement loans for energy efficient improvements, like solar panels and air source heat pumps.¹¹

Starling

Sustainable banking is key to Starling, with all of its UK offices running on renewable energy.¹² The digital bank is the official partner of the National Trust, funding nature workshops held at National Trust spaces and essential projects to restore peatland.¹³

Which ethical bank or provider is right for you?

Deciding which of the many ethical banks in the UK is the right one for you can be tricky. That’s why it’s always best to do your research and familiarise yourself with just where your money is going.

Still struggling to decide? Here are a few considerations:

• Choose an ethical bank that invests in organisations that align with your values and issues close to your heart, whether that’s social, environmental – or both
• Look at the bank’s track record and commitment to ethical lending practice. Has it always been an ethical bank? Or has it just started to prioritise a positive social and environmental impact?
• Consider interest rates by using comparison sites to compare ethical banks in the UK
• Think about accessibility – does the bank have a branch or is it digital only? Make sure to choose a bank with services that are convenient for you
• Read the fine print and look out for account fees, minimum balances or other requirements that may affect how you save your money.

For an ethical money services provider that’s totally transparent, choose Wise.

Open your Wise account

Not only do we prioritise grassroot impact and partner with charities who know their local communities better than us, but we’re leading the charge for banks to be 100% transparent with their fees. If there’s a cost associated with your transaction, Wise will tell you upfront.

Want to see if your bank is being transparent? Download one of our hidden fees reports now.

Sources used in this article:

1. Triodos - Triodos on transparent banking
2. Charity Bank - number of loans issued for various causes
3. Ecology - Ecology aims
4. Co-operative bank - Co-op bank ethical-led policy
5. Co-operative bank - Co-op bank impact of policy
6. Nationwide - Nationwide benefiting others
7. Cumberland Building Society - CBS commitments
8. Coventry Building Society - CBS on investing in harmful businesses (see PDF, pg 2)
9. Gatehouse Bank - Gatehouse use of funds
10. Gatehouse Bank - UN Principle for Responsible Banking
11. Tandem - Tandem sustainable banking
12. Starling - Starling renewable energy offices
13. Starling - Starling as a National Trust partner

Sources last checked on 1st May 2025