Rift combines finance and transparency
Did you know that saving €2,200 pollutes as much as a trip from Paris to New York, because that money often finances industries with high CO2 emissions?2, the three largest French banks invest twice as much in fossil fuels as in renewables? The basis of the Rift application is precisely the duty of citizens to transparency and accountability.
Rift is often presented as the Yuka of finance. Instead of evaluating the composition of food products,applicationapplication As co-founder Léo Garnier explains, it scans the social and environmental impact of your checking accounts, savings accounts, and life insurance.
Futura: What’s your solution?
Leo Garnier: The whole idea RiftRift making finance more accessible to both ‘de-clutter’ the assets held and give power back to savers. That’s why the app is free and very easy to access. To know the sectors financed and the impact, simply indicate the type of deposit, its amount and the relevant institution. carboncarbon given annually. For those looking to channel their savings into a more sustainable economy, the app also provides a list of products that align with their moral priorities, be it respecting human rights, fighting climate change, and more. Please note that all data collected is secure and anonymous.
Why is there such a lack of transparency in the financial world?
Leo Garnier: Opacity allows customers to retain some influence. In particular, unlike other sectors such as the food industry, this sector is not so developed. It should be said that finance has long been considered immoral, that is, it has no role in this changing world. However, it serves even more nowadays catalystcatalyst positive initiatives or has a major role in the transformation of large companies, because in the current economic system, companies respond to the demands of shareholders. In this sense, savings clearly play a role in influencing decisions.
Why will your startup change the world?
Leo Garnier: According to the Rousseau Institute, 57 billion euros more per year should be invested (which is equivalent to about 2%). GDPGDP) to limit temperature rise to 2°C compared to pre-industrial levels. A figure that looks ridiculous compared to the 6,000 billion euro savings of all French people. We believe that if citizens understand the problem, financial institutions will have to accelerate their transition. Even more, pressurepressure it can encourage the state to regulate this sector more strongly, following the example of European regulations, which are still being implemented very slowly.
How did the project grow?
Leo Garnier: After developing the Belgian subsidiary of Lita.co, which allows companies with a social, public or environmental profession to invest online, I joined Eva Sadoun to develop an application that allows to meet the shortage. transparencytransparency the financial sphere and the many methodologies used to assess the morality of investments and their carbon impact. Indeed, our investors regularly asked us the question “best life insurance” or “best bank deposit”. We were forced to realize that we were lost among the 5 ratings from A to E, made in a black box. Therefore, we have established indicators that can be understood by the general public by comparing them with quantities physicalphysical material, for example, m² biodiversitybiodiversity affected. In order to go through the process and be as reliable as possible, the program has been developed together with leading partners such as Oxfam or Carbon4 Finance.
What’s next in the story?
Leo Garnier: We have three to five years ahead of new rules that will see the light of day to introduce more transparency to the financial world and a truly successful mission to provide sustainable advice. Therefore, the idea is to increase the number of individual savings users, which currently number 50,000, and then gradually develop paid features while keeping the main part of the program free. At the same time, we will further develop business advisory activities and white label models to both reach the maximum number of savers and secure our funding. Because the cost of retrieving relevant information on the various assets held is quite expensive, and sometimes we even have to go through American databases to get information about French companies, which is quite paradoxical. In this regard, asset managers should indeed be forced to transfer them to a centralized database with sufficient precautions to protect industrial secrets.
Is this one of the measures you would implement if you were prime minister?
Leo Garnier: Yes and it is clear that, for example, there is a need for a public investment plan that is 100% compatible with the ecological transition, but at the same time greater restrictions should be placed on public procurement to take into account social and environmental criteria. Indeed, it is necessary to be based on concrete results, not to be satisfied with beautiful performances. Take, for example, the SRI label, which is highly criticized at the moment because, however virtuous in its intentions, it asks to exclude only the 20% of companies with the lowest ratings, even though the exclusion methodology is scrutinized. Also, excluding the worst 20% doesn’t mean the others are superior. I also think that we should involve more citizens so that we can bring some shameful topics to the public square.
What will the world look like in 2050?
Leo Garnier: It is very difficult to predict! On the subject of savings, we should not forget that the increase of climate disasters such as forest fires, extreme frosts, and the conflicts that will arise as a result of them will have a serious impact on the economic world. Unfortunately, we now have a theory of this. Therefore, it is a matter of preparation from now on, especially of large companies and possibly more of the stateinertiainertia and their ability to change can be stimulated by their exposure to controversy and, conversely, slowed by their dependence on a carbon-rich world.
Which Futura theme excites you?
Leo Garnier: The article about the most beautiful photos of astronomy in 2022 is a good complement to this article to get me some altitude and have some poetic moments. I have always been sensitive to the infinity of natural elements and a fortiori from space. Far be it from me to want to conquer it. It’s not bad enough to observe it modestly, as in this article!