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What Is a B Corp Bank?
Mar 21, 2025
What Is a B Corporation (B Corp)?
A B Corporation (B Corp) is a for-profit company that meets high standards of social and environmental performance, accountability, and transparency.
B Corps use business as a force for good, supporting people and the planet. While they aim to make a profit, they prioritize positive social and environmental impact rather than profit maximization.
The B Corp certification process is managed by the nonprofit B Lab, which sets evolving standards, policies, tools, and programs to measure and manage social and environmental performance. Businesses must recertify every three years to maintain their status, ensuring continuous improvement. They are evaluated in five key areas: governance, workers, community, environment, and customers.
What Is a B Corp Bank?
A B Corp bank is a for-profit bank certified by B Lab, balancing profit with purpose to ensure positive social and environmental impact alongside financial performance. Due to their for-profit nature, B Corp banks can create a broad positive impact.
There are currently sixteen B Corp certified banks in the United States and around sixty globally. One example is Sunrise Banks, based in Minneapolis and St. Paul, Minnesota. As a certified B Corp, Sunrise Banks ranks in the top 5% of B Corps of their size, known for their strong commitment to financial inclusion, community development, and sustainable practices.
What Are the Benefits of Banking with a B Corp Bank?
There are many potential benefits to being a customer of a B Corp bank, including more personalized customer service, a positive impact on the planet and your local community, and greater financial stability during economic downturns.
Environmental Impact
Banks significantly impact the environment. By providing loans and investments to harmful industries like fossil fuels and fracking, large banks enable these industries to expand, leading to increased carbon emissions. In fact, if the largest U.S. banks and asset managers were a country, they would be the world's third-largest carbon emitter, behind the U.S. and China. According to Project Drawdown, every $1,000 in savings kept in an account with a conventional bank is roughly equivalent to the emissions from flying from New York to Seattle annually.
Moving your money to an eco-friendly bank could reduce your banking emissions by an average of 76%. B Corp banks are evaluated on their environmental management practices, making them generally more eco-friendly than traditional banks. They might reduce their own operational carbon footprint, practice eco-responsible lending, and avoid carbon-intensive lending. For example, Climate First Bank specializes in solar lending and avoids fossil fuel investments.
Additionally, B Corp banks sometimes offer unique eco-friendly incentives or products. Beneficial State Bank's Climate Card allows customers to donate reward points to environmental nonprofits.
Social Impact
B Corps are evaluated based on their impact on communities, including DEI practices, civic engagement and giving, and supply chain management. By banking with a B Corp bank, you can help strengthen the social fabric of your local community and its residents.
B Corp banks also tend to have socially responsible lending practices, meaning they lend to organizations and projects that uplift marginalized communities and alleviate poverty and inequities. For example, Beneficial State Bank’s lending portfolio has helped fund nearly 3,000 affordable housing units across the West Coast while avoiding harmful lending, such as to weapons manufacturers. Amalgamated Bank, the largest B Corp bank in America, also practices socially responsible lending and provided $184 million in philanthropic support in 2023.
More Resilient to Economic Shocks
B Corp banks are committed to long-term sustainability rather than short-term profits, leading to more stable and resilient outcomes. Studies have shown that during the COVID-19 pandemic, a higher percentage of B Corps remained in operation compared to non-B Corps. Customers of B Corp banks collectively contribute to resilient local economies, even during times of economic uncertainty, by keeping their dollars local. Just as we can support local businesses by shopping locally, we can also strengthen our communities by banking locally.
More Equitable Pay Structures
Traditional banks prioritize profit, often leading to higher executive salaries. The average salary for the top 20 highest-paid bank executives in 2023 was over $21 million.
In contrast, B Corp banks prioritize stakeholder value, which includes employees, the community, and you, the customer. B Corp bank CEOs tend to have much more equitable CEO-to-worker pay ratios and are evaluated based on their pay equity. Beneficial State Bank pays all employees at least 125% of the MIT living wage calculator and has a 9:1 ratio of highest-to-lowest salary across the bank, compared to the top twenty banks, which have an average 196:1 ratio of CEO to median salary.
By banking with a B Corp bank, you cast a vote for more equitable pay structures.
Transparency
B Corp banks often place a higher value on transparency than traditional banks due to the robust reporting process required for B Corp certification. This not only reduces the risk of regulatory issues but also provides customers with more insight into what their bank is doing and what it values. On the B Lab website, you can see Beneficial State Bank’s certification details, including scoring details and disclosure reports. You can view these details for any B Corp by searching for them in the B Corp directory.
A Global Movement of Like-Minded People
Being a B Corp customer is more than just a transaction—it's a vote for a brighter future. Over the years, the global B Corp movement has been transforming the way the world does business. By becoming a member of the B Corp community, you join a collective effort to tackle society’s most pressing challenges, such as climate change and poverty, by redefining business practices. When you support a B Corp bank, you are not only advocating for a more sustainable and equitable banking system but also contributing to a worldwide movement of consumers dedicated to making a positive impact.
How to Identify a B Corp Bank
B Corp banks typically display the certified B Corp logo on the footer of their websites or in their branches, making it easier for you to identify and support them. To find a B Corp bank near you, you can search for "bank" in the B Corp directory and filter by your country. Additionally, you can perform a simple Google search for "B Corp bank near me.”
Considerations
While B Corp banks offer significant benefits for those looking to make a positive impact on the planet and people, there are some factors to consider when deciding to switch banks.
Due to the limited number of B Corp banks in the U.S., you might have fewer options available. If there aren’t any locations near you, be sure to investigate what mobile services and network ATMs are available. Beneficial State Bank provides a network of ATMs that customers can use at no additional cost.
Additionally, some B Corp banks may specialize in specific areas such as solar lending or home loans and might not offer all the services you need. Be sure to research the types of products and services a B Corp bank offers to ensure they meet your requirements.
Finally, it's important to note that while B Corp status is a robust certification, there are other impactful certifications that banks can obtain. B Corp certification isn't always a viable option for every bank striving to make a positive impact. Other certifications and memberships that signal strong ethical practices include Fossil Free Certification, CDFI certification, Global Alliance for Banking on Values membership, UNEP-FI signatories, and JUST certification.
Empower Your Finances for Good
Since 2013, Beneficial State Bank has proudly maintained its B Corp certification. Discover our range of products and services tailored for personal, business, and nonprofit customers to see how we can meet your needs. Ready to make the switch? Join us today and start banking Beneficially by following our guide on how to switch banks.
B Corp banks positively impact the planet, communities, and financial stability. They are an excellent choice for individuals looking to combat climate change, support social justice, and strengthen their local economy.
No matter which route you choose, by researching a bank’s practices, you can ensure your money supports causes you care about, amplifying your positive impact simply by being mindful of where you bank.
Business as a Force for Good
Better banking is not only possible; it’s imperative. We are honored to be part of the B Corp movement.
Choose a Bank that Invests in Tomorrow
Beneficial State Bank serves the triple-bottom-line of people, planet, and prosperity for all. That means prioritizing social justice and environmental sustainability. Our clients want to see their money put to good use – funding causes that defend our planet and build resiliency in our communities. Change your bank and help change the world.
Spotlight on B Corporations
As a B Corp bank, we are proud to support other B Corps that show that business can be a force for good.
