New Zealand-based fintech, Cogo is betting on its carbon footprint technology to drastically reduce emissions. The firm however said for the technology to succeeded, especially in the US it will require ‘behavior change’ from some of the biggest players.
Cogo’s carbon footprint tracking technology currently empowers millions of people and businesses globally to measure, reduce and offset their carbon footprint through their everyday banking apps and accounting software.
The tech firm believes the US could become one of its biggest markets, alongside its already established markets – the UK, NZ and Australia – but that wholesale ‘behavior change’ is needed from the country’s biggest players.
The company has, also, announced that it will attend Money 20/20, Las Vegas (23-26 Oct), a forum that deliberates on the future of banking.
“Money 20/20 is all about the future of banking and fintech; but American banks don’t need a crystal ball to read the writing on the wall. The truth is, they’re lagging behind globally where carbon footprint integration is fast becoming a ‘hygiene issue,” said Ben Gleisner, Founder of New Zealand headquartered Cogo.
“Across the US, customers are looking for help to understand and reduce their impact on the climate. In a highly crowded market, US banks that can establish themselves as a lifestyle partner to the conscious consumer will enjoy major growth and engagement.”
He added: “Many banks are already on the journey to reduce their operational emissions. Carbon footprint management tools will help them bring customers, who collectively have at least 100 times the footprint of the bank, along on the journey to deliver planet-saving action at scale, with bottom-line benefits.”
First US partnership imminent
Cogo is currently in discussions with several of America’s biggest banks around carbon footprint integration into their everyday banking apps and will debut its first partnership with a US bank in the coming months – making carbon footprint management history in the US.
The win will follow relationships which are already in place with banks across the UK, Australia and South East Asia, including NatWest (UK), ING (Netherlands), CommBank (Australia) and Westpac (AU/NZ).
“‘First mover’ banks who commit to bolder, braver climate action will find it easier to attract employees looking for value-aligned businesses. What’s more, amidst a recession, the banks which enable their customers to make more conscious spending decisions that could help them save on their total spend will corner a definite competitive advantage,” believes Ben.
How it works
Cogo Personal and Business Carbon Manager solutions enrich transactional data – such as spend on electricity and fuel – and assign a carbon emissions to each transaction. Cogo can then calculate a carbon footprint for the individual or business. In addition, customers can also access tailored advice around the actions they can take to make easy, positive changes to help lower their carbon footprint.
For businesses, the optimized end to end solution also enables customers to share their progress which can help them retain and attract customers, having a positive impact on the business’ bottom line.
“Cogo’s solution will allow the country’s banks to capitalize on the full potential of transactional data to generate personalized insights into each customer’s finances; and offer them the ability to align their spending with their concern for the environment.
As customer focus shifts, this is set to play a huge role in the attraction and retention of customers over the coming months. The solution also enables banks to accurately segment customers who might be interested in ‘greener’ lending or banking products. In line with this, Bank of America alone has committed to $1.5 trillion in sustainable financing by 2030.
Cogo increases the sustainability of a bank’s portfolio; assists with compliance around ever-tightening legal requirements, including possible climate related financial disclosure, and comes with significant brand benefits from being a sustainability champion,” believes Ben.
Ben will attend the US event – together with key members of the company’s US team – where Cogo has a stand (4421 booth number) and expects to have high-level meetings with financial institutions who are set on cornering a ‘first-mover’ advantage in this space.