As a speechwriter for Al Gore in the late 1990s, Andrei Cherny had a front row seat to what he remembers was the “very lonely fight” then Vice President Gore was waging to alert people to the threat. of climate change.
A quarter of a century later, Cherny continues the fight as a fintech entrepreneur, but is not
only. In fact, Aspiration, the sustainability-focused financial services company he co-founded in 2013, faces growing competition in consumer solutions for climate change.
As concerns about weather patterns have grown over the past year, so has the number of fintechs offering various ways for consumers to reduce and mitigate their carbon footprint. At the same time, traditional banks and credit card companies are also turning to retain and capture customers who want to invest their money in institutions that are helping to solve rather than exacerbate climate change. Even Visa and Mastercard are implementing ways to help consumers calculate and offset their impact.
Aspiration is also riding the wave of growing interest in climate-focused fintech companies, with its revenue growing 700% over the past year and its customer base doubling to more than 5 million, according to data provided by the
company. On the consumer side, it offers pay-as-you-go savings accounts and investment vehicles with a commitment not to invest in fossil fuels. Most of its income, however, comes from helping corporations offset their carbon footprint. In August, Aspiration announced plans to go public through a merger of a special purpose acquisition company (SPAC) that values it at $ 2.3 billion and will make it the first provider of consumer financial services focused on the sustainability in public markets.