Small bank seeds green lending with assist from fintech

Virginia Community Capital Bank in Richmond prizes the clean energy lending program it launched five years ago.

The San Diego fintech has the trappings of a typical neobank: no monthly fees, early direct deposit and interest rates that grow in exchange for referrals.

Amalgamated Bank recently reinforced its commitment to social and environmental values; Citizens Financial Group and MUFG Union Bank announced deposit products for their business clients where the funds will go toward environmentally friendly projects.

“I think we will see more models like this,” she said.

VCC sources its borrowers from a network of solar installers who refer them to businesses, such as wineries or manufacturing companies, typically in the District of Columbia, North Carolina or Virginia.

With the help of Ando, Greenleaf expects to double the clean energy loans he makes this year.

A more recent addition to its growth strategy is its partnership with the rock climber Alex Honnold, who will promote Ando and sustainable banking on social media and create his own initiatives with Ando.

It lets the financial institution identify and underwrite loans, after which Ando will communicate to its customers how their money is reducing emissions.

Pie charts in the Ando app show customers where their money is currently going with the VCC partnership and break down Ando’s future funding plans, which are evenly divided between clean energy, sustainable transportation, green buildings, sustainable industry and sustainable agriculture and forestry.

“I like the level of transparency provided,” Compere said.

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