• Green fintech is on the rise
  • Fintechs push for eco-friendly loans
  • B Corp badge shows true colours of fintechs

 

In recent years, the world of financial technology (fintech) has undergone a pretty big shift. Gone are the days when all that mattered was making a profit.

Now, more and more companies in the sector are focusing on something much bigger: making a positive impact on the planet and society.

This shift towards ESG principles and ethical investing, often referred to as “green fintech”, is sparking a lot of innovation in the industry.

A lot of fintechs globally are developing products and services that help people and businesses transition to a low-carbon economy.

For example, we’re seeing companies rolling out green finance options, ie; loans for renewable energy projects.

Green loans are loans which are specifically designed to fund renewable energy projects, like wind farms, solar installations, and energy-efficient buildings.

In Australia, for instance, one fintech company that’s known to offer green loan products is Plenti Group (ASX:PLT).

In its latest Q3 update, Plenti smashed its previous records with $49 million in renewable energy loan originations, which is a 16% jump compared to last year.

The company’s GreenConnect platform really stepped up, helping a record number of home battery installations and boosting Plenti’s share in the renewable energy market.

By the end of December 2024, Plenti’s total renewable energy loans has hit $323 million.

 

Green car loans

Green car loans are also becoming more and more popular in Australia, and it’s no surprise why.

As more Aussies look to reduce their carbon footprint, electric and hybrid cars are becoming the way to go.

They’re considered a great choice for environmental reasons, but the downside is they can be pretty expensive compared to petrol cars.

However, companies like MoneyMe (ASX:MME) are making it easier to get behind the wheel of a greener ride, with special green car loans.

MME’s green car loan offers lower interest rates and is specifically designed to help finance electric or hybrid cars, supporting a more sustainable, eco-friendly route.

 

Green deposits

Now, let’s talk about savings accounts that do a bit more than just help you stash away cash.

Some deposit-taking institutions are now offering eco-friendly savings accounts, making sure your money isn’t used to fund fossil fuel projects.

In Australia, unlisted Bank Australia is one institution that offers this kind of product.

As a customer-owned bank, Bank Australia says that customer deposits are not invested in fossil fuels, live animal export, weapons or gambling.

Instead, the bank supports clean energy transitions, community projects and nature protection.

The bank calls it the “clean money movement”.

 

Sustainable investing fintech

Sustainable investing has become a hot trend, too, and it’s not just the startups or small fintech companies leading the charge any more.

Even well-established names in the ethical investment space, like Australian Ethical Investment (ASX:AEF), are jumping on the fintech bandwagon, bringing their services to the palm of your hand.

With the Australian Ethical mobile app, investors can stay up-to-date with their eco-friendly managed funds in a more streamlined and user-friendly way.

For Australian Ethical, this move into the mobile space reflects a broader shift in this space, where fintech is blending with traditional approaches to make ethical investing more accessible.

 

B Corp badge

Fintech companies are also increasingly showing their commitment to sustainability.

MoneyMe’s achievement of becoming a Certified B Corporation (B Corp) is a clear example of this shift.

B Corp certification is a tough badge to earn. It recognises businesses that meet high standards of social and environmental performance, accountability, and transparency.

MoneyMe passed this rigorous test after a 12-month evaluation, scoring an impressive 91.2, far above the 80-point minimum threshold.

B Corps are essentially companies that balance profit with a positive social and environmental impact.

This certification means MoneyMe isn’t just focused on the bottom line, but is actively working to make a difference in areas like reducing carbon emissions, promoting financial inclusion, and supporting community causes.

For example, MoneyMe’s efforts include switching to 100% renewable energy and planting trees to offset carbon emissions.

MoneyMe is one of only a handful of ASX-listed companies that are B Corp-certified.

Other Australian financial companies that have embraced the B Corp movement include Australian Ethical and Liberty Financial Group (ASX:LFG).

Globally, the B Corp community includes well-known brands like Patagonia and Ben & Jerry’s.

 

At Stockhead we tell it like it is. While MoneyMe is a Stockhead advertiser, it did not sponsor this article.

Read MoreFintech

Featured Companies

You might be interested in