The European bank plans to offer the most sustainable current account in the UK and will begin with a phased rollout from June this year.

Since it began operating in the UK 22 years ago, the bank has only lent money to organisations that improve society, including enterprises ranging from social housing to renewable energy projects.

Triodos said it was launching the account in response to growing consumer demand for banking products which show a positive impact on society.

"Our new personal current account brings an inspiring new option to the UK current account market, which we believe is dysfunctional and is obviously dominated by a small number of large banks,” said Bevis Watts, managing director of Triodos UK (pictured above, left).

"We want people to really think about what their bank is doing with their money.

“Money doesn't have to be invested in the arms trade, fossil fuels and tobacco – it can be used to do good things that help build the society we want to live in.”

The bank also works with intermediaries looking to promote ethical financial services for both business and personal customers.

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Triodos hopes its new account will also challenge the practices of many high street banks.

The bank revealed it will charge customers £3 per month for the current account service.

Arranged overdrafts will be available, but not unarranged overdrafts as the bank looks to remove the risk of high penalty fees.

"There is no such thing as 'free' banking because someone else always pays,” said Huw Davies, head of retail banking at Triodos (pictured above, right).

“'Free' accounts are usually subsidised with high penalty charges and hidden fees, so the most vulnerable customers, or those making a rare miscalculation with the household finances, end up paying an exorbitant price.

“This isn't fair, so we are leading by example with a fresh approach.”

Triodos already operates current accounts in the Netherlands, Spain and Germany and saw net new lending in the UK grow by 43.5% to nearly £90m in 2016.

"Money is the most powerful tool for change,” added Bevis.

“UK consumers are realising just how much influence they can exert over the banking system and our wider society simply by channelling their finances into things that benefit them, their communities and society in the long term."