What Banks Are Giving Back – £1 Billion and Over 1 Million Man-Hours

In one year, banks across the UK, US and Europe contributed in excess of £1 billion to their communities and to help alleviate poverty and improve education worldwide, according to the most detailed report on bank giving yet from the BBA.

Projects supported by banks ranged from multi-million pound initiatives to tackle avoidable blindness in developing countries like Pakistan and Bangladesh, to programmes that provide funding and resources to improve education and work prospects of some of young people in some of the poorest boroughs in the UK, like Tower Hamlets in London, according to the report - "Good Returns".

The billion pound total from 2013 includes £366 million from the six largest UK retail banks alone, and £602 million pledged by the four US banks interviewed for the study. This total investment rises from £968 million to well in excess of £1 billion when the philanthropic activities of other leading European and US banks are factored in.

In the UK, a total of 181,000 retail bank employees also spent in excess of 1.1 million hours volunteering on social projects.

Good Returns examines why banks are so committed to these particular issues and how they give.

Chief Executive of the BBA, Anthony Browne said:

"Philanthropy is no longer an extra-curricular activity for banks. Increasingly it is built into their DNA as socially aware businesses.

"Though giving money remains an important part of how they contribute, banks also offer their employees' time and valuable skills through volunteering.

"This arrangement isn't just good for society. There are also clear advantages for banks – a motivated workforce with broader experience and, in the long term, the payoff of a financially inclusive society."

ENDS

For more information please contact the BBA press office on 020 7216 8989.

Notes to editors

The US banks interviewed for this study were Citibank, Morgan Stanley, J.P. Morgan and Bank of America Merrill Lynch.

CASE STUDY – LLOYDS AND ALZHEIMER'S SOCIETY

Lloyds and the Alzheimer's Society and Alzheimer Scotland have recently reached the end of their two year partnership which saw the Group's colleagues raise nearly £7 million for the charities. What set this partnership apart, was that the Group supported a specific programme for the charity. It has found this to be a much more tangible concept and therefore easier to drive fundraising and build commitment around the cause. In partnership with Alzheimer's Society, Lloyds supported the Live Well programme which was the first of its kind and dedicated to the care of people living with dementia.

The original two year target for this partnership was £2 million. This was smashed by employees within a year. The target was then revised upwards twice more. Once the original target was met, Lloyds' employees voted for additional funds to be used to further support those facing dementia through an Innovation Fund that allowed new dementia services and activities to be piloted. Following this, money was raised for a dementia research leaders' programme, which ensures the Group leaves a lasting legacy for the charity. Part of the Live Well programme of support has also meant that the Group trained thousands of its employees to be "Dementia Friends".

The benefits of this training will last long after the partnership has ended.

CASE STUDY – STANDARD CHARTERED SEEING IS BELIEVING

The idea for this programme originated in Bangladesh at the 150th anniversary celebrations of the bank. An employee suggested Standard Chartered raise money for a charity that performed cataract operations. That year staff initially campaigned to raise enough money for 20,000 operations, but ended up raising enough for 50,000. Rather than treating this as a one-off, staff started to think of different ways they could raise more money to help tackle avoidable blindness and visual impairment. There was no particular structure at the start, but as it grew Standard Chartered set up partnerships so that there was some control over the programme.

Seeing is Believing therefore partners with the International Agency for the Prevention of Blindness (IAPB) and other leading eye-care organisations. It funds eye health projects in poor developing communities throughout the bank's global footprint. The impact has been huge – 53 million people reached through medical interventions, 3 million cataract operations have taken place, 10.1 million patients screened and 145,000 health workers trained.

Standard Chartered has also pledged to match all donations received until it reaches its $100m target by 2020 and it is committed to absorbing the running costs of Seeing is Believing.

The way the funds are spent is very systematic and strategic. The approach is first to collect evidence on the prevalence of visual impairment in a country as well as its eye health system. The fund then trains more eye care professionals, for example, funding the training of health workers in Pakistan has encouraged other donors to contribute and the number of health workers has doubled from 20,000 to 40,000. The fund then provides comprehensive eye care and make sure it is integrated into general health care. Finally, the fund looks at how to eliminate social and economic obstacles so that payment at the point of delivery does not prevent access.

Aside from the successful partnership model it runs, Standard Chartered has also introduced a new approach in the form of the Seeing is Believing Innovation Fund. This was launched in 2013 to encourage innovators around the world to bid for funding from a central pot of $3 million to develop pioneering ideas that will impact eye care delivery in developing countries. Three hundred proposals were submitted and grants totalling $1 million were awarded.

This is another example of how banks are finding new ways to increase impact and create better and longer lasting outcomes.

CASE STUDY – PATHWAYS TO BANKING

In early 2014, Barclays, Deutsche Bank, Lloyds and HSBC came together and announced their partnership with the Sutton Trust to try and increase access to the banking sector for under-privileged students. The programme aims to give young people from low and middle-income backgrounds the training and support to realise their full potential, following the banks' aims to increase aspiration and opportunity for young people. The programme provides a framework of activities that focus on giving students an early start and ongoing support and, in particular, informs them of the wide range of careers available in banking. The banks all have a different involvements ranging from supporting the expansion of existing Sutton Trust programmes to the Sutton Trust reviewing the banks' current programmes, where appropriate, to increase the impact and access to its targeted cohort.

For example, HSBC is investing £2 million over five years into the Sutton Trust's flagship 'Teach Summer Schools' which aims to equip teachers with the skills to support students applying to the leading universities. It pledges to target schools with low rates of entry to the top universities, train 2,500 state school teachers about the benefits for students in attending these universities and raise awareness with teachers about work and, in particular, careers in banking.

Aside from investing in these programmes, the banks will also be contributing staff time to go into schools and talk about careers in banking to the teachers.

Simon Martin, Head of Global Corporate Sustainability at HSBC, said: "I am delighted that HSBC is supporting the new Pathways to Banking programme to help improve social mobility by getting talented young people from less advantaged backgrounds into the top universities. In the UK, HSBC donates £14 million a year for education, including scholarships."

CASE STUDY – RBS MONEY SENSE/BARCLAYS MONEY SKILLS

RBS's MoneySense programme provides online resources for teachers, parents and children. The course is split into four modules; managing your money, understanding credit and debt, preparing to live independently and business finance. Alongside this it aims to teach children about financial responsibility and budgeting. RBS has crafted the programme so that each module is standalone and teachers can select how to teach the course. The resources include videos with advice and a virtual bank to explore. Students can also practice filling in forms and other paperwork, as well as solving real-life financial scenarios. It also covers the basics of how to open a bank account and how to manage money day-to-day. MoneySense is the largest programme of its kind in Britain and in the last three years more than 1 million young people have benefited from its lessons. Each year, lessons are delivered to around 300,000 young people throughout the UK, with 80% of these being delivered directly by teachers.

"Our flagship programmes of Pocket Money and MoneySense touch 56% of all schools in the UK and are aimed at ensuring children and young people have the right skills and knowledge to make sensible choices about money and debt in the future." – Andrew Cave, Chief Sustainability Office, RBS.

Barclays' Money Skills programme similarly aims to help one million adults build their skills, knowledge and confidence to manage their money more effectively. Barclays partners with many different charities and on a range of programmes to reach this goal. It targets 16-25 year olds in particular. This area is one that Barclays feels it can have a big social impact given its expertise and reach.

'As part of our commitment to 5 Million Young Futures, we are helping the next generation build the enterprise, employability and financial skills they need to achieve their ambitions. Projects that enhance financial inclusion, financial capability and support young people in managing their money better will help ensure a brighter future for the next." – Kathleen Britain, Director – Community Investment, Barclays.