Climate Change in FinTech
The terms “climate change” and “FinTech” are not often used together, but it’s evident the financial sector plays an imperative part in the race to mitigate climate change.
Climate change has had significant impact on the world, causing droughts, intensifying wildfires, and severe weather. When disaster strikes, many homes, cars, and businesses are destroyed – increasing the number of insurance claims. In the last 30 years, insured losses from natural catastrophes have increased a whopping 250%.
One sector directly affected has been InsurTech. These disasters have resulted in insurance companies not offering certain coverages in specific locations and higher insurance premiums. Many consumers either buy policies that don’t have the coverage they need or even go without insurance.
A growing number of FinTech’s have begun utilizing algorithms, data gateways, and AI to address both sustainable and financial needs for their consumers.
So, what is “Climate FinTech”?
Climate Fintech is a cross-cutting sector that covers the intersection of climate, finance, and digital technology. Climate change poses both an economic and political risk to the global economy, so many financial service institutions are playing critical roles in the change. Financial sector innovation is needed in multiple areas such as:
- The shift of investment dollars into renewable energy sources instead of oil & gas
- Tools for tracking emissions and changing behavior at the business and consumer level
- Financing of new infrastructure to better develop insurance
- Sustainable banking practices
- Carbon credit trading
Fintech has shown that it’s a robust industry with the ability to drive innovation and reach venture scale. With financial product innovation and applied technologies being used, we’re closely looking at how FinTech can be a driving force in mitigating climate change.
Just some of the FinTech companies currently combatting climate change:
FloodFlash is the first parametric flood insurance available to the mass market. Each customer chooses a depth of flooding and how much they’d receive when floods reach that depth. When the smart sensor installed at their property detects flood water at the chosen depth, the claim is paid in full.
rePurpose Global is the World’s First Plastic Credit Platform dedicated to making planetary action delightfully simple for purposeful people and companies of any size, anywhere. Their one-stop solution empowers anybody to take meaningful environmental action and go Plastic Neutral by financing innovators on the frontline, fighting for the planet’s future.
Betterview is the only property data platform that informs every transaction for decision-makers who want to reduce risk, cost & waste in an increasingly competitive environment. Quickly becoming essential to every transaction around buildings and properties, Betterview provides software and services that capture, organize, and analyze data for buildings and properties to unlock valuable insight.
CAPE Analytics uses deep learning and geospatial imagery to provide instant property intelligence for buildings across the United States. This company enables insurers and other property stakeholders to access valuable property attributes at time of underwriting—with the accuracy and detail that traditionally required an on-site inspection, but with the speed and coverage of property record pre-fill.
Today’s insurance industry is all about making the right decisions. Arturo empowers you to decide with intelligence. Arturo is dedicated to eliminating the complexity of extracting insights to deliver accurate predictions immediately useful in their customer’s business systems.
Cooler future is making investing sustainably easy, transparent, and fun – naturally. The company offers access to financial markets, so everyone can support climate-friendly companies, reduce emissions, and co-create tomorrow’s world.
Ando is not just solving climate change but changing banking for good. Believing the industry should be transparent, the company is committed to redirecting money in the banking system and investing it exclusively into carbon-reducing projects.
Recruitment in Mission-driven FinTechs
Moving towards a net-zero economy is a very rewarding mission – and the companies highlighted are doing it well! Climate FinTech is only on the rise, with the sector booming with new innovative practices each day. Disruptive companies in the financial and insurance sectors are looking for top tier talent that will help build their company’s mission-driven businesses. This is a vibrant ecosystem for FinTech, bringing in new and different investors and diversify the space.
Your Partner in Growth
As the FinTech industry continues to grow, so does the need for talent to facilitate this. At Storm2 we have specialized in connecting FinTech talent with disruptive FinTech players such as yourself. We can assist in any stage of your growth by connecting you with the right people. Please don’t hesitate to get in touch and we would be more than happy to see how we can help and support you in your journey.