Ahead of this year’s Good Money Sunday (4 October 2026) we sat down with Michael Muzanechita from The Co-operative Bank to ask him some questions about ethical banking for churches. The Co-operative Bank features – alongside CAF Bank, Unity Trust Bank and Reliance Bank – in JustMoney Movement’s Greener, Fairer Banking Guide, where we compare ethical current accounts for churches and charities.
Many banks now talk about sustainability and responsibility. What makes The Co-operative Bank’s approach to ethics distinctive?
What makes The Co-operative Bank distinctive is that ethics are not simply a corporate responsibility programme or a sustainability initiative. They are embedded within the Bank’s identity.
The Co-operative Bank was the first UK high street lender to introduce a customer-led Ethical Policy in 1992. What makes this particularly powerful is that the policy is shaped by customer feedback and represents their values rather than being solely determined by management. The Bank’s ethical commitments have been influenced by hundreds of thousands of customer responses over the years.
For churches and faith-based organisations, this should resonate strongly as it reflects values based banking. The focus is not simply on financial returns, but on considering the wider impact that banking activities have on planet, people and communities. Many churches want their money to be held by an organisation whose actions align with their own mission and values, and that is where The Co-operative Bank’s ethical heritage continues to stand out.
What commitments has the bank made on climate change, and how do these affect lending decisions?
The Co-operative Bank has made several commitments aimed at supporting the transition to a lower-carbon economy. As part of the Group, the organisation is a signatory to the UN Principles for Responsible Banking. These align banking activities with the UN Sustainable Development Goals and the Paris Climate Agreement.
Climate considerations are not just about reducing the Bank’s own operational emissions. They also influence decisions about who the Bank chooses to support through lending and commercial relationships. The customer-led Ethical Policy directly informs lending decisions on sectors and activities with significant environmental and social impacts. The Bank refuses to provide any services to businesses whose activities conflict with these commitments, such as companies involved in the exploration, extraction or production of fossil fuels.
What are some of the most important considerations for religious organisations when choosing a bank?
From my experience working with churches, charities and not-for-profit organisations, there are four key considerations.
Firstly, trust. Churches and charities are custodians of funds that have often been donated generously by supporters. They want a bank with a strong ethical reputation, robust governance and a commitment to acting responsibly.
Values alignment. Increasingly, organisations want assurance that their banking partner reflects their ethical principles. They want to know where their money is held and how it may indirectly support economic activity.
Sector expertise. Churches often have unique structures, governance requirements and decision-making processes. They value relationship managers who understand these complexities and can provide practical support.
Finally, stewardship. With many organisations holding reserves for future projects, maintenance programmes or mission activities, there is growing interest in savings solutions that provide security, competitive returns and flexibility.
In simple terms, churches want a banking partner that understands both the financial and the wider social purpose of what they do so that a church’s funds will be used in accordance with these objectives.
We have followed with interest the acquisition of The Co-operative Bank by the Coventry Building Society. What does this mean for the bank, and for current and potential customers?
The acquisition by Coventry Building Society marks an important new chapter for The Co-operative Bank.
We are building a modern, purpose-led mutual with broader capabilities, greater financial strength and a wider reach. Bringing together two values-driven organisations with almost 300 years of combined heritage gives us the scale to invest, grow and create more value for members, customers, colleagues and communities.
Our purpose is simple: we power good with every pound. We believe every pound we manage has the power to create positive change. Because we are mutual-owned and don’t have external shareholders, we can take a longer-term view, making decisions that balance commercial performance with positive impact. Our performance powers our purpose.
For customers, the immediate message has been very straightforward: it’s largely business as usual. Products, services and banking arrangements continue to operate as before, while customers benefit from the strength and long-term outlook associated with a mutual ownership model. The organisations have also stated their intention to invest in customer service, digital capabilities and community impact.
For prospective customers, particularly churches and charities, this combination brings together the stability and member-focused approach of a building society with the ethical heritage and business banking expertise of The Co-operative Bank.
If you could encourage church leaders and treasurers to ask just one question about their banking, what would it be?
I would encourage them to ask:
“Does our choice of bank reflect the values and mission that our church seeks to uphold?”
Most churches carefully consider how they spend their money, but it’s equally important to consider where that money is held.
Banking is often viewed as an administrative necessity, yet every faith organisation has an opportunity to ensure that its financial arrangements align with its values. Asking this question can lead to productive conversations about ethics, sustainability, stewardship, customer service, community impact and financial resilience.
For churches, good stewardship is about more than managing resources efficiently. It’s about ensuring that all aspects of financial management support the wider mission and values of the organisation. Choosing a banking partner whose principles align with those values can therefore be an important part of that stewardship journey.
Why should churches think about sustainability when choosing a banking partner?
Churches have long been custodians not only of financial resources but also of buildings, heritage and communities themselves. Increasingly, congregations are asking how their financial decisions can support their wider mission and environmental commitments.
Choosing a banking partner that takes sustainability seriously allows churches to ensure that their deposits and banking relationships reflect the same values they promote through their ministry, community outreach and environmental initiatives. Banking may not always be seen as a mission activity, but who we choose to bank with can be an important expression of stewardship and responsibility.
Furthermore, many denominations and church bodies are developing their own environmental and Net Zero ambitions. Working with a bank that understands these priorities can help support those journeys.
What role can banks play in supporting local communities?
Banks have a responsibility that extends beyond providing accounts and loans.
A good banking partner should help strengthen local economies, support financial inclusion, promote sustainable business practices and invest in community wellbeing. The Co-operative Bank has established strong relationships and consistent support for charities that provide vital services aligning strongly with common church missions such as Centrepoint, who are making it their goal to end youth homelessness.
Churches are often at the heart of these same objectives. They support vulnerable people, combat loneliness, provide community space and respond to local needs.
The most effective partnerships are those where both parties share a commitment to serving communities and improving outcomes for people.
How important is ethical banking to younger generations?
Younger generations are increasingly interested in transparency, sustainability and social impact.
This trend presents an opportunity for churches as they engage younger members and communities. Demonstrating that the church considers ethical and responsible stewardship across all areas, including banking, can help reinforce credibility and authenticity amongst the younger generations.
How can churches contribute to the transition towards a more sustainable economy?
Churches have considerable influence through leadership, education, procurement decisions, property management and financial stewardship.
Whether installing renewable energy technologies, improving building efficiency, supporting local environmental initiatives or considering the ethical implications of financial decisions, churches can play a significant role in promoting sustainability.
The collective impact of thousands of churches making thoughtful decisions can be substantial and can provide a powerful example to wider communities. Often, older and listed buildings can be particularly energy inefficient and so it’s important that churches do what they can to understand ways in which they can bring their buildings on the journey to Net Zero – The Co-operative Bank’s Renewable Energy Funding Scheme may be able to help.
What are the advantages of working with a relationship manager who understands churches?
Every church is unique. Decision-making structures, governance arrangements, trustee responsibilities and financial objectives can differ significantly from those of commercial organisations.
A relationship manager who understands the faith sector can help by:
- Understanding governance requirements
- Supporting treasury and savings strategies
- Discussing appropriate solutions for reserves
- Identifying opportunities for financial efficiencies
- Providing a long-term relationship rather than a transactional service
- Churches often value trusted advice and continuity as much as they value products.
If you had one message for church treasurers managing significant reserves, what would it be?
My message would be simple: Every pound entrusted to your church has been given in support of your mission. Good stewardship means ensuring those funds are not only protected but are working effectively and are held with an organisation whose values reflect your own. At The Co-operative Bank, we believe responsible banking, ethical decision-making and strong savings solutions can work hand in hand, helping churches achieve both their financial objectives and their wider purpose.
Michael Muzanechita is a Commercial Banking Relationship Manager at The Co-operative Bank. He has 25 years’ experience in commercial banking and relationship management.
Michael works with faith organisations, religious orders, trusts, charities and community-led institutions, helping them explore practical banking solutions that support their mission, values and long-term financial resilience.
His focus is on building trusted relationships and adding value through support around deposits, liquidity planning and treasury solutions. As part of an ethical bank, Michael is passionate about helping faith-based organisations manage their funds with confidence, clarity and purpose.
He believes that strong banking relationships are built on listening, understanding and providing support that reflects each organisation’s values, governance responsibilities and commitment to the communities they serve.
Michael can be contacted by email here.
To explore JustMoney Movement’s banking resources for individuals and churches, click here.
To look at The Co-operative Bank’s website, click here.