Latest Podcast : What the election changes and doesn't change with CERES & Climate Cabinet, Ep #99
Today’s guest—Ravi Mikkelsen—is the founder of Atmos Financial, a bank that ensures your deposits only fund climate-positive investments like renewable energy projects.
Ravi Mikkelsen
Most people don’t put that much thought into where they bank. Do you? Do you choose a bank because it’s convenient? Is it simply somewhere your family has always banked? Do you look for the best interest rates? You probably haven’t considered how your bank invests the money you deposit in your savings or checking account(s). The majority of big banks are investing your money into fossil fuels.
Today’s guest—Ravi Mikkelsen—is the founder of Atmos Financial, a bank that ensures your deposits only fund climate-positive investments like renewable energy projects. Switching banks may sound like a hassle, but it’s likely easier and far more impactful than you think. In this episode of Invested in Climate, Ravi shares how Atmos Financial works and how you can make an impact with your money.
Before Ravi started his freshman year of college, he was part of a group of students that learned about an engineering research exchange program. As the program was explained to him, words like “eco-friendly materials,” “water quality testing,” and “renewable energy” were used.
As soon as Ravi heard those words, a voice in his head said “This is your mission in life.” So Ravi signed up for that program. He’s spent some part of every day working on his mission to move the world away from its dependence on fossil fuels.
Six years ago, Ravi switched to finance and developed a new lending model in the residential solar space. After reading the 2018 report on stabilizing temperature rise, he learned that trillions of dollars needed to be spent on transitioning to solar.
Who has that money? The global banking system. They’re holding $170 trillion of your money. Your deposits are used to finance whatever the banks want. Ravi couldn’t find a bank that invested in climate-positive assets, so he created his own: Atmos Financial.
Ravi saw finance as Archimedes level. If you want to move the world off of fossil fuels, money makes the world go round. If you shift the money that’s available for financing these initiatives, you can make an impact and accelerate the transition.
Atmos is an unregulated banking entity, also known as a fintech startup or neobank. They partner with existing regulated banks. So when you open an account, the money sits in a sponsor bank with FDIC coverage. The same checking/savings accounts available at any bank are available with Atmos Financial. So how are they different?
They’re creating a network of climate-positive portfolios for deposit holders. Why should you move your money to Atmos? It funds climate-positive assets and you can still buy whatever you want with your money.
Government entities—to protect consumers—make sure regulated banks meet certain risk requirements (i.e. a diversified portfolio). That’s why many banks hold bonds, mortgages, auto loans, and debt for fossil fuel extraction, prisons, and more—things many of us deem societally harmful.
But because Atmos financial is unregulated, they aren’t forced to embrace that diversification. They can put 100% of their money toward climate-positive initiatives, thus creating a climate-positive portfolio for deposit-holders. Big banks have committed to funding $1 trillion toward green investments—but it’s not enough. Listen to learn why.
Supporting non-profit organizations is a key feature and mission of Atmos Financial. Sadly, climate-focused non-profits receive a small fraction of annual giving. Atmos wants to expose these non-profits to more customers.
To do this, Atmos offers high savings rates on their savings accounts—they simply request that you make a monthly donation of any amount to one of their 50+ nonprofits. They also offer roundup donations when you purchase with a debit card.
They also have the largest climate sustainable cashback rewards program of any debit card. They give up to 5% cashback of purchases at 300 mission-aligned companies (and are hoping to hit 500 by the end of the year).
Branch networks cost as much as 1% of a bank’s yield. By not having in-person branches, they reduce their expenses and can pay customers more for the privilege of borrowing their money. You are making a loan to the bank to use for their purposes, usually to lend to other projects. Would you lend your money to someone to finance a prison, a war, or fossil fuels? If the answer is no, you shouldn’t deposit your money with a big bank.
When you switch to Atmos Financial, you begin investing in climate-friendly initiatives. You invest in clean energy, clean mobility, and better urban planning. You invest in the better world that you want to live in. You have the power to shape the world you live in by choosing your bank.
Learn more about Atmos Financial and its mission for climate-friendly investing in this episode of Invested in Climate.
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