For the co-founders of Green-Got to build a neo-bank “green” will be the redemption of the green bond of the State.
Andrea Ganovelli and Maud Caillaux, the co-founders of Green-Got © Green-Got
Maud Caillaux and Andrea Ganovelli hope with all my heart, but they don’t believe it : the traditional banks do will focus not overnight their investments carbonaceous towards sustainable projects, and it will only delay the ecological transition. Sensitive to the global emergency of the climate, they have decided to embark on the development of a neo-French bank, which should be put in place by the end of the year.
Referred to as the Green-Got, the payment institution has not yet given details of the actors with which it will launch its offers. The two co-founders have agreed to speak with Press-lemon to unveil the first lines of their business model, and their opinion on the business case of the ecology in the banking world.
Presse-citron : The neo-bank Green-Got to be launched before the end of the year. A study by KPMG has shown that the market of the neo-bank was close to saturation in France – and their business model has been undermined by the crisis. On what are you going to capitalize it to differentiate you ?
Maud Caillaux : KPMG assumes that the market is saturated, and this can be comprehensive in the sense that one often finds the same offer, with a bank card free of charge. But if we look at the third generation of neo-banks, so-called ” niche “, today in France we do not have a neo-bank ” green “. So finally, the market is saturated globally, but we, our value proposition is more profound than a simple free account and practice. Our tool will allow our customers to have a positive impact in their daily lives. Today, there is absolutely no bank and new zealand bank that offers it in France. On this point of view, the market is not saturated. On the contrary, there is no one yet.
Andrea Ganovelli : Green-Got is a neo-bank ” green “. In appearance, we are doing exactly the same thing that the neo-traditional banks : the same service and the same type of application. The difference is that on our side, this has an impact. You should know that today the biggest carbon footprint of a French average, it is his bank account. This is something that is unknown, but the largest part of our CO2 impact in our daily lives, it is our bank account. It is about 12 tons.
Why ? On our savings account and our current account, traditional banks use our money to come and increase the size of their balance sheet. For this, they provide direct financing for industries fossil fuels, such as coal, gas, or mining industries.
At Green-Got the money from our account is always placed, invested. But it is entirely on ‘green’ projects. It doesn’t change anything for the consumer and his or her current account. It is not him who decides where to invest and who bears the risk, the amount in his current account is still the same, but the impact of his or her current account is totally different and the opposite of its current impact.
Presse-citron : in recent months, we have seen many neo-banks launch in the niche “green”, sometimes with a print to use the environment and the social as a marketing ploy of any kind. This axis of differentiation is it sustainable ?
Andrea Ganovelli : It is hoped that the traditional banks will turn to this ecological sensitivity. If tomorrow Green-Got allows all banks to do the same thing and help to stop subsidies to fossil fuels, we will have won everything. Now, we, we do not believe that these banks have the capacity to do so, because they are completely dependent on these assets-there. Société Générale and BNP Paribas, does not include, and must always continue to subsidize carbon-based energy. As we have seen previously, a coal power plant is born in Germany, and the two main financial were the two French schools. They are intrinsically linked to these assets, and they can’t change.
Maud Caillaux : For other banks, who take the ecology as a commercial argument, I believe that the people are not stupid. Want to be a neo-green bank but working with the Société Générale, for example, it is very schizophrenic as a value proposition. The transparency must be applied, and on those issues, I think the consumer is very educated.
Presse-citron : You have the intention to offer solutions responsible investments to your clients. How are you going to do ? Do you have a partner to accompany you on the fund’s ESG ? Is it, rather, support to small local initiatives ?
A. G. : On the current account, a portion of the money may be used by the banks. What we will do with Green-Got, is that the money will lead directly to the funding of green bond. We will use a banking partner that is going to put these are on green bond issued by States, which provide details of their investments. You can see for example that the French State will emit each year green bond to the tune of about 10 billion euros. This can be used to help finance transit systems, maintenance of forests, the maintenance of the oceans, the wind, etc
Then, we will propose solutions of saving in which consumers will have the choice of projects in which they want to invest. Green-Got will make a pre-selection for projects economically viable and secure. Today, if we want to invest responsibly, it is very complicated – it is necessary to know how to finance. Through the savings of Green-Got it, the goal is to enable the client to be able to invest safely and in just a few clicks.
Presse-citron : I’m going to go back on the current account. Your manager of asset will invest in what are the obligations ? Is it that you have an idea of the country, is that it will be that of France ? Are you departing from the principle that France is an ecological model ?
A. G. : We are going to exclude countries like China and the green bond companies. We will use the obligations of the French State and of certain european States. This is not because of the finance obligations French green that you consider that France is the perfect model. But today, in France, there are things that are very good for the ecology. We have the details of what that finance the State.
On the other hand, we can not arrow shooter money of each user on the projects in which its money will be invested since these obligations. This is something that is not possible, but we still have this detail of the projects in which the $ 10 billion debt to France.
This is not because of the finance obligations French green that you consider that France is the perfect model
M. C. : I allow myself to return to the question of ecological model of the State. I think that this is not the issue. What is the ecological level, the French State, yes we want to support these measures-there, that’s for sure. Is that in supporting these measures, it supports all of the measures of the French government ? No, this is not our discourse.
The State has a fundamental role in the ecological transformation. This would be very little pragmatic to exclude it from the transformation that we need and which must be under 10 years old, because the meter is running and faster and faster. To support the State, which is ultimately the only institution that has the power to have an impact at the national level, does not leave place for questions.
Presse-citron : neo-banks are the most influential as Revolut or N26 intend to rely on millions of users to find (a day), their cost-effectiveness. And you, how will you achieve this goal ? Do you intend to be supported by public actors ? And if yes, what type of investment will he allow you to compete with players less scrupulous on the issue ?
A. G. : As we said at the beginning, it is for this reason that we choose to have a model that is fee-based. The main income of Green-Got to be his subscription. It allows us to be able to make the right choice in terms of investment. Today, banks that are unscrupulous, which offer accounts free of charge, obviously they need to pay otherwise. They will move towards assets that in the short term are more profitable, but also carbonaceous, unfortunately.
We are not going to appeal to public players, the prize has been established in the most fair possible for that Green-Got to be independent and that it can allow us to make our investment choices. The price that is fixed today does not run after fundraising incessant every 18 months to be able to survive.
Presse-citron : When one looks at the banking world, it reveals the impressive technical infrastructure – virtual and physical – that are needed to operate this system on a global scale. By nature, the world of finance, would it not be contrary to the ecology ?
A. G. : No, I am not in agreement. Today, the ecology needs to be funded. We need to completely reorganize the way the world works and the way in which trade is conducted today. For that, we need investment, we need money. And there is the world of finance that can bring this money then. Intrinsically, we need the finance to fund the energy transition and the ecological transition.
Mr. C. : We at Green-Got, we do not think that it is possible that the current system falls by ten years, and rule all of the problems. You really think that you have to play with the current maps, to be the most pragmatic possible. The biggest lever that we can use to finance this ecological transition and energy, it is finance.
We need the finance to fund the energy transition and the ecological transition.
Presse-citron : A study (published by ING and recovery here) says that the health crisis has shifted the expectations of the French : they have a greater need for insurance financial strength. Ecological awareness / environmental can take over ?
A. G. : The two are not incompatible. We at Green-Got the funds of depositors will be secured to the tune of 100 000 euros, just like all the other neo-european banks. In the same way as they, we are under the control of the ACPR, the industry is highly regulated, and well fortunately. This is not because of the ecological values and this is not because we want to protect the climate that one is less secure and more dangerous than the other banks.