More and more banks in Austria are focusing on innovative ways to reach their ESG goals (Environmental, social, governance)-without being announced: to overwhelm measures inside with abstract measures. The solution: Cashback programs with regional partners who reward sustainable consumption and at the same time strengthen the regional economy.
Cooperating banks offer their customers: Attractive cashback incentives on the inside when they buy from regional companies-from organic farmers to sustainable fashion shops to green electricity providers. So everyone benefits:
- Banks improve their ESG balance and strengthen the customer: internal bond.
- Customer: inside save money and support environmentally friendly companies.
- Regions benefit from increased purchasing power and sustainable growth.
Why regional cashback works right now
The EU regulation demands clear sustainability strategies from financial institutions. At the same time, more and more are expecting a visible contribution to the environment and society inside. “Cashback programs are the ideal lever”, explains Sascha Horvath, managing director of Mehrwerk Österreich GmbH. “Banks thus reach measurable ESG progress-without giving up, but by reward. Sustainability must be easy-for banks and their customers: Inside. Our regional partner network makes ESG concrete.” ESG is not a cost factor, but the next step in monetization of customers: internal relationships. Banks generate significantly higher ones through regional cashback Cross-selling rates for sustainable products.
ESG compliance becomes a competitive factor
With the tightening of EU taxonomy and increasing reporting obligations (CSRD), banks must have their sustainability strategies document specifically and comprehensibly. At the same time, it turns out in practice: Customers: Inside, banks prefer that Connect tangible ESG engagement with regional business development. “Classic ESG measures such as green bonds or CO₂ compensation remain for many: abstract on the inside”, Sascha Horvath analyzes. “With regional cashback programs, on the other hand, banks create direct visibility and regional anchoring-two decisive factors for acceptance and effect.”
Example from practice
After the introduction of the program, a regional bank not only recorded increasing transaction numbersbut also 20 percent more new customers: insidethat specifically searched for sustainable financial solutions. Through targeted partnerships with regional companies, attractive cashback incentives for sustainable purchase decisions and a Transparent data monitoringthe ESG effect such as CO₂ savings or local value creation makes, creates a Clear competitive advantage For banks.
Sustainable cashback as a growth engine for banks
Every euro cashbackwhich remains in regional-sustainable cycles, ensures additional added value on site. “This is hard economy in a green robe”, So Sascha Horvath, who as the managing director of Multiwerk Austria sees a real growth engine in sustainable cashback programs – and banks help with regional cycles to monetize their ESG targets.
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