Can savings be good for your wallet and good for the planet?
It all started with one question that Shoal's co-Founders Joan and Tom asked themselves: is there a way I can grow my savings and support sustainable development at the same time?
That question inevitably led to more questions:
Consumers in the UK can grow their wealth or make an impact with their money in various ways. But, Tom and Joan found that there are always big trade-offs between impact, security and returns.
The idea of supporting a sustainable project directly, like a sustainable farm, or an ocean clean-up project is really appealing. While these projects do amazing work, funding them through savings can be high risk even though the potential returns could be great. In return for accessing such impactful projects, interested investors would typically have to lock up their money for five years or more and accept that they could get back a lot less than they put in. In other words, your capital is at risk.
The idea of growing savings very quickly is also appealing. You could open an investment account, invest in the stock market directly, or buy cryptocurrencies. Again, even with promises of higher returns, you could get less than your original investment. Ethical or green investment funds also put your capital at risk and they do not have the same positive impact as direct sustainable investing. Your money is usually sat with investment managers, not with the companies you’d like to support.
The idea of growing your savings safely and securely is also appealing. High-street banks will give you a fixed interest rate on your savings. But, many banks choose not to tell you how your savings are being used (as we know, your money doesn’t just sit in a vault, it is out there funding companies and projects). While your savings are kept safe, and you will always get back what you put in with a little interest on top, your money could be funding companies and projects that do not align with your values.
Now imagine there was a platform that combined the benefits of impact, safety and returns... For example, imagine you could earn a fixed return and see your money support activities that align with your values, such as funding renewable energy projects, helping small and medium sized businesses grow in emerging markets, or providing clean water to millions of people. Imagine that you'd always get back what you put in, with a fixed return on top.
That’s Shoal. You can earn a fixed rate on interest on your savings through Shoal and watch your money support sustainable development and the fight against climate change.
Your money is growing. Check.
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Your money is safe. Check.
Your money is making a positive impact on the world. Check.
Increasingly, more of us want to know how our money is being used when it is on deposit with a financial company. And, even more of us want to make sure that money is being used to fund good things, like sustainable development and the fight against climate change.
Make My Money Matter estimates that for every ￡10 you put in your pension, ￡2 is linked to deforestation. They also estimate that by moving your pension to a greener provider can cut carbon emissions 21x more than going veggie, giving up flying and switching energy provider.
According to June 2022 data from HMRC, in the UK, people hold a collective ￡288 billion in cash savings. Now, imagine if we all asked our savings providers how our collective money is being used when held on deposit?
How many of us would be satisfied with no answer at all?
We can’t wait to help you reach your savings goals and show you that your money can make a positive impact on the planet with Shoal.
Stay in touch Shoal
Connect with us: Tom Mason Joan Medland Edgars Karklins Paola Masperi Ivelina Delcheva, CFA