Ecosaver Mortgage Qorus-Infosys Finacle Banking Innovation Awards 2024

The mortgage industry is an essential player in efforts to tackle climate change through the education of homeowners on the benefits and costs of home energy upgrades and the funding of the home renovation programmes needed to improve the energy performance of building stock. Ecosaver plays a key role enabling the bank and our customers on this journey and over time will encourage more retrofitting and contribute positively towards the environment, while also supporting the Irish Government’s Climate Action Plan.

Ecosaver does this by supporting and rewarding improvements in a home’s energy efficiency or Building Energy Rating (BER). A BER evaluates a home based on how energy efficient it is, with A-rated homes being the most energy efficient and G-rated homes the least. Through an innovative ecosystem including an online “Home Energy Efficiency Hub” and digital tool, Ecosaver helps educate homeowners on what the BER of their property is, how to improve it along with the associated costs of doing so. Uniquely, Ecosaver also rewards customers for improving the BER of their home through a range of tiered mortgage rate discounts for all properties with a BER, from A to G. The concept behind Ecosaver mortgage is simple – the more energy efficient a home becomes, the more the Ecosaver mortgage interest rate reduces and through a “One Stop Shop” retrofit partner homeowners can easily plan and complete any home energy upgrades required.

The objectives of Ecosaver mortgage include: • Offering an innovative solution to a known customer need: Research commissioned by Bank of Ireland found, six in ten homeowners plan to retrofit their home at some stage in the future and one in ten already has, while the majority (60%) of first-time buyers are now considering green mortgages when purchasing their future homes. • Meeting a market need: Almost three quarters of the housing stock in Ireland is BER C and lower. • Homeowner education and improving retrofit literacy nationally: The unique and innovative Ecosaver “Home Energy Efficiency Hub” helps educate homeowners considering a home retrofitting journey, through a dedicated digital support hub and tool, on how best to improve the energy efficient of their home and the costs associated with any planned upgrades. The launch of Ecosaver was also supported by a national educational campaign which invites consumers to celebrate their home’s Building Energy Rating (BER) and get access to discounted mortgage rates in the process. • Help address behavioural barriers to home retrofits: The potential behavioural barriers, highlighted in a Sustainable Energy Authority of Ireland (SEAI) report, that homeowners face when planning to retrofit their home including, Capability barriers, Opportunity barriers and Motivation barriers. • Helping Bank of Ireland achieve its scientifically-validated greenhouse gas emission reduction targets: Bank of Ireland was the first Irish bank, and one of the first in Europe, to have its goals validated by the Science Based Targets initiative (SBTi), and under the targets, Bank of Ireland is committing to a 48% reduction in mortgage portfolio emissions (Ireland & UK). • Supporting the National Climate Action Plan and Ireland’s commitment to the United Nations Sustainable Development Goals: The Irish Government’s Climate Action Plan has set out a target of upgrading 500,000 older homes to a BER rating of B2 by 2030 and of installing 400,000 heat pumps. Ireland’s homes are responsible for one quarter of our overall energy use and 10% of our overall greenhouse gas (GHG) emissions. Reducing the amount of energy and fossil fuels we use in our homes is therefore an important part of the government’s Climate Action Plan. • Improving homeowners’ financial wellbeing: Improvement in a home’s BER can help reduce energy bills, make a house warmer, unlock cheaper mortgage deals, reduce the homes carbon footprint, and potentially improve the property’s resale value.

Within the Irish market and internationally, Ecosaver is a pioneering proposition, made unique by rewarding customers for improving the BER of their home through a range of tiered mortgage rate discounts for all properties with a BER, from A to G, a dedicated “Home Energy Efficiency Hub” focused on education and a “One Stop Shop” partner for home owners considering upgrading the energy efficiency of their home.

Inspiration for the proposition was taken from many sources but primarily from primary research completed by Bank of Ireland which shows that 90% of first time buyers believe BER (Building Energy Rating) is a deciding factor when purchasing a property, and more than four in five (85%) are likely to undertake home improvements post-purchase to improve their home’s BER. In addition, sustainably motivated decisions are even higher among younger first-time buyers, with 65% of 25–30-year-olds thinking about green finance options for their new home.

The research, development and launch of Ecosaver was a truly cross functional program of work, involving many teams and group functions. The innovative proposition was co led by Bank of Irelands Homebuying team and Customer Propositions & Innovation teams.

Results have been encouraging. Bank of Ireland is Ireland’s number 1 green mortgage provider, supported by the launch of the Evosaver mortgage.