BANKING GREEN: Saving Logs By Logging On

Story by Sally Gilhooley

Each day American businesses generate enough paper, a key bi-product of our forests, to circle the globe 40 times. Trees remove carbon through photosynthesis, converting carbon dioxide and water into dioxygen and plant organic matter such as carbohydrates. A single tree will absorb one ton of carbon dioxide over its life span. While we have enough trees right now from which to make more paper thanks to our Sustainable Forestry Initiative (SFI®), research shows that trees provide other benefits in addition to the capture of carbon dioxide, such as providing habitat for millions of organisms, providing renewable resources like building materials and preventing soil erosion. Making the choice to bank online can go a long way towards preserving precious woodlands while avoiding greenhouse gas build-up.

From saving paper through e-statements and paperless billing to saving gasoline by eliminating a drive to the bank, it is not surprising that eco-friendly online banking has become the popular financial management choice. In fact, online banking has been the fastest growing Internet activity in the U.S. over the last five years according to Pew Internet & American Life. Javelin Strategy and Research, a leading provider of independent research and direction for financial service initiatives, reports that 61 million households currently bank online (53% of the U.S. household population,) a number projected to reach 82 million or 67% of U.S. households by 2012. If 100% of U.S. households paid bills online we would save 2.3 million tons of wood, or 16.5 million trees.

Yearly benefits if all households complied would include: reducing fuel consumption by 26 million BTU’s –enough to power San Francisco for an entire year; decreasing air pollutants by 3.9 billion pounds of carbon dioxide equivalents (greenhouse gases); reducing toxic waste water by 13 billion gallons and lowering solid waste by 1.6 billion pounds, equal to 56,000 loaded garbage trucks. It would also save landfill space and curb toxic emissions including methane gas which is released into the atmosphere as paper decomposes.

Ed Travaglianti, president of Commerce Bank on Long Island, said, “Online banking is a great facilitator not only for the fact that it’s “green”but it’s a great timesaver. It’s one of our fastest growing areas being adopted for both personal and business accounts. Our system at Commerce is easy to operate –even I can do it!

“You can set up automatic payments such as a mortgage to be paid out on a specific date, manage and move money between accounts with ease. As far as security goes, it’s safer than having paper checks out there today. We use a 128-bit Secure Socket Layer and multiple firewalls.”

North Fork’s Carolyn Drexel, executive vice president of branch banking and private banking, added, “Online banking is the future of banking. It’s an important delivery channel. As we watch the generations change, we see that young people really live by remote access. Of course, number one, we have to make sure online banking is secure and number two, that we can deliver the best access to enable customers to navigate funds very easily.”

“Bank of America is recognized as one of the leaders in online banking, Our strength lies in our security and how we bring clients through the web to the convenience of banking online,”said Robert Isaksen, president of the Long Island market for Bank of America.“Although you will always have people who like to use their local branch, trends indicate more consumers will take advantage of online services. They can bank from home or their office at a time that is convenient for them and suits their personal banking needs.”

If you are thinking of banking online, it’s wise to use a well-known, reputable bank. Its website should use encryption and Secure Socket Layer to scramble your personal information and prevent it from falling into the wrong hands. It should also have a privacy policy. Create a unique user name and password different from your e-mail and don’t do personal banking on public computers. Viruses can endanger your online banking safety so virus protection software is a good idea.

Paperless banking and online ordering can help maintain a balance that is about more than trees slated for the paper factory. When it begins to cost too much to grow forests, landowners may opt to sell to developers for houses and shopping malls. Animals and plants could lose habitat as we lose valuable green land.

As environmental concerns increase, more people will understand that green banking can manage their greenbacks safely and efficiently while giving them another great way to go green.