As awareness of climate change and the need for sustainability increases, people are looking for ways to invest their money in companies that align with their values. Fortunately, there are a growing number of green FinTech companies that offer sustainable investment options.
These companies use technology to enable environmentally friendly and socially responsible investing. They offer products and services such as online banking, peer-to-peer lending, impact investing, and carbon offsetting.
By choosing to invest in green FinTech companies, you can help create a clean, green, and sustainable economy since you are choosing to support the betterment of the environment. In this article, we have listed 10 of the best green FinTech Companies for you.
Best Green FinTech Companies for a clean and sustainable economy
Taking the green initiative and focusing on environmental and eco-friendly ways of making business, there are a few companies, which have made a big name in the industries. And some of the noteworthy eco-friendly Fintech companies are as follows:
1. TreeCard
TreeCard is an environment-friendly fintech company that caters to European customers. The company’s name says it all: it aims to eliminate plastic use and reforest the planet.
They manufacture cards out of a pile of properly recycled plastic bottles as well as cherry wood that has been carefully sourced.
Furthermore, It spends most of its profit supporting reforestation. The importance of each customer’s tiny effort is highlighted through TreeCard. They have a huge influence when they TreeCard and customers work together.
They’re dealing with the dangers posed by the palm oil business in Indonesia, tackling starvation in Senegal, repairing watersheds in Ethiopia, etc. to help the planet.
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2. Triodos Bank
Triodos is one of the UK’s fintech startups working to make the banking industry more environmentally friendly and sustainable. People are more concerned than ever before about the negative impact on the environment.
Since ethical choices are a top priority for their investors, the bank exclusively invests in sustainable solutions and publishes information about all of the companies with which it works public displaying one of its core values: transparency.
As a result, all stakeholders can study how their investment is helping to avert a climate disaster.
3. Almond
Almond is a green fintech company based in the United Kingdom. One of its goals is to assist businesses in increasing sales and developing stronger relationships with their customers.
However, they have another environmental objective in mind: promoting and assisting people in achieving a carbon-balanced lifestyle. That’s why Almond created free software that encourages people to live a greener lifestyle.
Users can, for example, search for greener alternatives, avoid purchasing unsustainable goods and services and measure their carbon emissions. Furthermore, when customers shop with partner brands, they receive compensation that is used to plant trees and conserve the rainforest.
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4. Clim8
Clim8 is one of the London fintech startups that is demonstrating its commitment to a sustainable society. It helps in growing clients’ investments while also conserving the ecosystem.
It gives you a wide range of visions for investment. In fact, Clim8 is involved in numerous environmental programs aimed at combating climate change.
Clean water, smart mobility, technology, energy, sustainable food, and the circular economy are some of the good investments in Clim8. All of this contributes to fulfilling the goals of the UN’s Paris Climate Agreement.
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5. PensionBee
PensionBee is a well-known online pension company that assists you in taking charge of your retirement.
It’s one of the most well-deserving companies in the lineup of top fintech companies. PensionBee introduced its fossil fuel investment program in 2020. Its goal is to stop funding oil, coal, gas, and tobacco companies as well as arms manufacturers.
Furthermore, its clients are making socially valued investments for saving the environment. Your money will be invested in firms whose objectives are suited to the Paris Agreement.
6. Aspiration
Aspiration is an excellent example of how fintech startups can contribute significantly to improving the environment.
Its two fundamental values are to invest money in environmentally friendly projects and to avoid oil and gas companies that devastate the environment.
They also think that tiny activities add up to large results. That’s why Aspiration mechanically rounds up each dollar paid by the customer and plants a tree with the loose change every time a consumer swipes their card to make a transaction.
The goal of this program is to plant trees and reduce carbon dioxide from the atmosphere by millions.
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7. Starling Bank
Starling Bank is a significant fintech company in the United Kingdom nowadays. Their desire is to become green and adopt more environmentally friendly solutions.
It draws a large number of people to join its mission. The bank has no branches, uses no paper, and runs entirely on renewable energy.
It was also the leading bank in the country to provide debit cards manufactured using recycled plastic. In addition, Starling will work with other top fintech firms to reduce carbon emission levels. They also plant trees to decrease and avoid deforestation.
8. Stripe
Stripe is a payment processing service for Internet businesses. They started to allow all forward-thinking enterprises to contribute to making the world more carbon neutral.
Companies can donate a portion of their earnings to technology that eliminates carbon from the atmosphere with only a few clicks. In exchange, such companies receive a green emblem that shows customers their involvement in several green projects and their core principles.
Stripe, on the other hand, donates to carbon professional movers on a regular basis. Reducing the global temperature to avoid catastrophic climate change impacts.
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9. Tred
Tred became one of the UK’s most environmental fintech companies after launching the very first totally green debit card.
The card you receive is manufactured using recycled plastic. This card can track and display your carbon intensity via the app.
Every time you grab a cup of coffee, fill your gas tank or buy plastic items, it effectively calculates and displays the quantity of carbon dioxide emissions.
You can view all of the things you can take to minimize your negative impact on the environment. Another fantastic initiative: you buy goods and indirectly Tred uses some portion of the profits to plant trees.
10. Trine
Trine is a leading finance company established in Sweden that benefits its customers while also having a positive environmental impact.
Solar energy is its primary focus and the results are astounding for saving the environment. Since the money invested by Trine investors is funded to develop solar technology.
You create an account, pick a loan plan, and decide how much to give. You get your money back with interest after the distribution of solar products. Trine’s goal is to help clients obtain three times their money back.
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What challenges do Green Fintech Companies face?
The thought of taking both economy and environment together to make a better planet for all people is a good thing. However, it’s not as easy as it sounds. There are several challenges that all Green FinTech Companies must overcome to fulfill their objectives. Here are some of the major challenges:
1. Financing
Although the world wants to have a good natural environment, it still focuses on profit rather than the environment for the most part. This really makes things difficult for Fintech Companies to get the necessary funding. They need to win over their consumer for funds.
2. Greenwashing
Sometimes the companies scam customers by promoting themselves as green companies but are actually producing non-green products and also using non-eco-friendly technologies. So, it’s difficult for a genuine green fintech company to show its credibility to clients.
3. Involvement
Creating a clean, green, and sustainable economy is not possible only for one company. It requires the involvement of other companies to contribute to the greater cause for the planet: eliminating pollution. But not every company is ready to adopt follow the direction of green fintech companies.
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Conclusion
The world is facing some big challenges when it comes to the environment and the economy. But luckily, there are the abovementioned top fintech companies out there who are working to create a green, sustainable future. These green FinTech companies are making a real difference in the world for both people and the environment.
