Fintech
Former Tesla fintech head spins off Aspiration consumer finance brand to meet growing demand for climate-friendly financial products
The new independent company targets consumer demand for sustainable financial services; nearly 40% of US consumers are interested in using climate-related financial products
SAN FRANCISCO, April 23, 2024 /PRNewswire/ — Responding to growing demand for climate-friendly financial services, fintech and sustainability industry veteran Tim Newell has reached an agreement with climate finance firm Aspiration Partners, Inc., to spin off Aspiration’s green consumer financial services brand into a new standalone company. The new company will continue to operate under the Aspiration brand, which offers sustainable checking, savings and investment accounts that enable climate-conscious people to fight climate change through everyday spending and saving.
Newell, former head of the consumer finance teams at Tesla and SolarCity, will take on the role of CEO, having previously led Aspiration’s consumer fintech division as chief operating officer of Aspiration Partners. The management team and employees of Aspiration’s consumer division join as founding members of the new venture. The new company plans to invest extensively in adding more climate-friendly products and features.
The spin-off of Aspiration’s consumer division as an independent neobank comes at a time when demand for green banking services is growing. According to a recent survey by McKinseyGreen financial products are increasingly sought after by consumers of all income levels and community types, with nearly 40% of US consumers reporting an interest in subscribing to climate-friendly financial products.
“There is large, untapped consumer demand for financial products that help rather than harm the planet,” said Tim Newell, CEO of Aspiration. “The most powerful action the average American family can take in the fight against climate change is to switch to a financial partner that does not fund fossil fuel exploration or production.”1
According to a recent study, consumers who rely on a carbon-intensive traditional bank could indirectly lend up to 30% of their money to the industries most responsible for fueling the climate crisis. Project withdrawala leading independent climate research organisation.
“If every household in the United States switched to green banking products, we would collectively avoid financing the equivalent of 161 billion gallons of gasoline each year, which is more than the annual gasoline consumption of the entire United States,” Newell added.
Mission Financial Partners, founded by Newell in 2023, will serve as the operating company for the Aspiration brand. Similar to other neobanks, Mission Financial Partners is a financial technology company, not a bank. Banking services on the Aspiration platform will be provided by Aspiration’s longtime banking partner, Coastal Community Bank, Member FDIC.
For more on Aspiration’s new direction, see today’s blog post from Tim Newell, CEO of Mission Financial Partners here: https://blog.aspiration.com/aspirations-next-steps/
Speaking of aspiration
For over a decade, the Aspiration brand has been at the forefront of integrating climate action into personal finance. Its suite of green financial services products enables people to directly combat climate change through everyday spending and saving. As a leader in climate-friendly financial services for consumers, Aspiration is committed to creating a future where financial decisions contribute to a healthier planet. To find out more visit aspiration.com.
Information about mission financial partners
Operating at the intersection of personal finance, technology and climate action, Mission Financial Partners (MFP) is the operating company powering the Aspiration family of green financial services. Founded by fintech and sustainability industry veteran Tim Newell, MFP took over management of the Aspiration consumer brand from Aspiration Partners in February 2024.
1 The difference between the average carbon intensity of cash deposited in large traditional US banks and that of greener banks is based on the 2023 Project Drawdown report “Rescue [For] the planet: the climate power of personal banking.“ Carbon intensity savings of 0.183 tCO2e per $1,000 deposited were applied to an average American family’s checking and savings account balance of $62,410 per U.S. Federal Reserve balance ”Survey of Consumer Finances, 1989-2022” (2023). This result was then compared with the results presented in the Project Drawdown report “Rescue [For] the planet: the climate power of personal banking.”
2 The same approach as in note (1) was used to calculate the total CO2e savings of a US family. The CO2e savings per household were then multiplied by the number of households in the United States according to the method US Census Bureau (2022). The total CO2e savings of all households were then converted into gallons of gasoline equivalent using US EPA Greenhouse gas equivalence calculator (2024). Finally, this result was compared with the total annual gasoline consumption in the United States estimated by US Energy Information Administration (2023).
SOURCE Aspiration