Commenting on how banks should relook incentives to promote sustainability, SMU Associate Professor of Finance and Co-Director of Singapore Green Finance Centre Liang Hao noted that many motorists still rely on petrol, and until cleaner-energy vehicles become more widespread, banks need to continue supporting their current customer base. “Transitioning too abruptly could alienate customers and limit the effectiveness of sustainability initiatives,” he said. But he added that credit cards can significantly influence consumer behaviour, and banks can play a pivotal role in facilitating the transition through incentives such as rewards for electrical vehicle charging and discounts on green products and services. Assoc Prof Liang also said existing petrol-related financial products may still have a market for a while due to the legacy vehicle fleet and customer preferences.
