A French neobank is offering accounts that guarantee none of depositors’ money will be invested in polluting or unsustainable industries
Spotted: Many ordinary people would like to be able to invest in sustainable projects but lack the capital or knowledge to do so. Now, French startup Green-Got is giving these people the chance to make the money in their traditional bank account work for climate improvement.
Green-Got is a neobank that guarantees that any money sitting in an account isn’t being used to finance polluting industries. Users create their account in minutes using Green-Got’s mobile app and receive a debit card that is compatible with Apple Pay and Google Pay.
The twist is that, because Green-Got isn’t technically a bank – but rather a payment institution partnered with a bank – account holders’ money isn’t invested in anything at all, let alone in polluting companies. Instead, Green-Got generates its revenue from subscription fees paid by the account holder – currently priced at €6 per month.
Meanwhile, like other fintech startups, Green-Got receives a share of the interchange fees a business pays when its customers perform a card transaction. But instead of pocketing these fees for profit, Green-Got donates them to a selection of non-profit organisations it has selected in partnership with its customers. In this way, Green-Got account holders contribute to positive change with every payment.
Green-Got recently raised €5 million in a funding round led by eco-investment fund Pale Blue Dot, with nearly €2 million contributed by Green-Got’s retail customers. The startup raised its initial equity funding through a crowdfunding campaign on Crowdcube.
Neobanks have been around for a while and there are a wide number to choose from, although Green-Got is unique in some of its focus. Other neobank innovations Springwise has spotted include one that focuses on the US Latino community and a female-led social impact bank.
Written By: Lisa Magloff