In response to the growing demand for climate-friendly financial services, fintech and sustainability industry veteran Tim Newell has reached an agreement with climate finance company 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 name, offering sustainable checking, savings, and investment accounts that empower climate-conscious individuals to combat climate change through their everyday spending and saving.
Newell, the former head of the consumer financial products teams at Tesla and SolarCity, will take on the role of Chief Executive Officer, 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 are joining as the founding members of the new venture. The new company plans to invest extensively in the addition of more climate-friendly products and features.
The spinout of Aspiration’s consumer division as an independent neobank comes at a time when the demand for green banking services is growing. According to a recent survey by McKinsey, green financial products are increasingly sought after by consumers across all income levels and community types, with nearly 40 percent of US consumers reporting interest in enrolling in climate-friendly financial products.
“There’s a large and untapped demand by individuals for financial products that help rather than harm the planet,” said Tim Newell, CEO, Aspiration. “The most powerful action the average U.S. 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.”
Consumers who bank with a traditional carbon-intensive bank may be indirectly lending up to 30% of their money to the industries most responsible for fueling the climate crisis, according to a recent study by Project Drawdown, a leading independent climate research organization.
”If every household in the U.S. switched to green banking products, we’d collectively steer clear of funding the equivalent of 161 billion gallons of gasoline each year - that’s 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 long-time banking partner, Coastal Community Bank, Member FDIC.