greentech

FINTECH: Greentech and Fintech are a match made in heaven

Here me out here. Decarbonisation and sustainability are becoming buzzwords within the hallways of big venture. Why? Because -- global warming tensions aside -- financial services companies both big and small are coming to the realisation that they are the end customer for energy startups focused on operations, management, and analytics platforms. Bloomberg backed this up in a recent report indicating that investments into the Global clean energy totaled $332.1 billion in 2018 -- with Solar and Wind receiving the lion's share of investment at 39% each.

Politics aside, renewable resources have grown more cost competitive as a direct result of production economics -- sourcing cheaper and more efficient methods and resources to harness energy in more sustainable ways. For example, Tesla's solar roof is deemed to be 20% cheaper than a normal one. So where does Fintech fit in all of this? Since alternative energy generation sources like wind, solar, and fuel cells have become more cost competitive and popular, financial players have stepped in to source the tools and platforms necessary to maximize the return profiles of these alternative energy generating assets -- specifically using technology to inform the operational and financial performance of such assets. For example, blockchain enabled energy trading platform -- Electron, insurance and risk management platform -- Energetic Insurance, or renewable energy finance plans and services platform -- Sunrun

Ultimately, it is without a doubt that what Fintech brings to the table is customer centricity -- creating enjoyable user experiences via friendly graphical interfaces and having an obsession with cost efficiency where it matters most for the customer. Case in point is what Transferwise did for cross-border payments, or Robinhood for stock trading, or Venmo for payments. Yet, it will be up to the greentech startups as to whether the inherently dirty financial services players have cleaned up their act enough to join them on their journey. For more on this, read here.

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Source: BloombergNEF Report, Chubb Cleantech's Global Balancing Act Report, Electron (via Etondigital),Sunrun (Plans & Services)