Green Banking: Where Climate Activism and Capitalism Collaborate

Consumers and business owners who want to do well while doing good may want to consider opening accounts with a green bank.

Ken LaRoe may call himself a “rabid capitalist,” but he’s also an outspoken advocate for values-based businesses.

“Our customers come to us because they understand we offer a values-based opportunity, but they also come to us because we offer great rates for their savings,” says LaRoe, founder and CEO of Climate First Bancorp and executive chairman of Climate First Bank, the nation’s first climate-focused community bank, which was launched in 2021.

LaRoe, a leader in ethical banking, believes finance can be a force for good, especially in support of sustainability. He founded Florida Choice Bank in 1999 and grew it to more than $400 million in assets before selling it. Then he founded First GREEN Bank, the first bank in the eastern U.S. with an environmental and social mission.

Like Climate First Bank, GreenFi, a financial services company launched in April 2025, offers climate-friendly banking and investing services. Step one for both financial institutions: keeping customer deposits fossil fuel free. Big banks have invested $6.9 trillion in fossil fuels since 2016, according to GreenFi, funding projects such as pipelines and oil drilling. Step two: financing projects that support the environment and communities.

“When I started my career in the early internet days when consumers could make their own investments, I saw the power of individuals to participate in financial markets,” says Tim Newell, former head of the consumer financial technology division at Aspiration, a consumer finance business, and former leader of Tesla’s financial products team.

Newell also helped launch a San Francisco-based bank that financed sustainability focused startups, as well as Solar Bonds, a financing company that helped fuel the rapid expansion of solar power for homes.

“Too often, consumers are confronted with the choice of investing in a product to meet their financial goals but not their values,” Newell says. “That’s a false choice. There’s power in providing consumers with access to products that meet their needs and support their values.”

Newell says that most consumers don’t realize the impact they can have with their financial choices.

“The largest climate impact people can make – more than investing in solar power or driving an electric car – is what they do with their money,” Newell says. “If you save or invest money in one of the 10 largest banks, then up to 30% of your deposit supports the fossil fuel industry. You may have bought an EV, but your money is undermining your commitment.”

Green Finance Environmental Impact

Eliminating contributions to the fossil fuel industry is just a start. Through Climate First Bank, more than 6,000 homeowners have been able to finance solar energy systems since 2021, including 3,300 households in 2024.

“We recently launched Fast Track Commercial Solar financing for business owners who want to add solar to their buildings,” LaRoe says. “So, for example, if a dentist wants to add solar to a small office building, we’ll offer up to 100% financing with a 25 year term and no dealer fees.”

In 2024 Climate First Bank lent more than $210 million into values-driven projects and launched a subsidized solar lending program in Montgomery County, Md. focused on low to moderate income communities. They joined the Global Alliance for Banking on Values, the Net Zero Banking Alliance and helped form the Business Climate Finance Working Group.

Climate First Bank provides small business loans to values based organizations such as Helpsy, a Certified B Corporation and Public Benefit Corporation, which works to keep clothing out of landfills and create impactful jobs. In 2024, they collected over 32 million pounds of clothing and shoes—saving more than 4 billion gallons of water, cutting over 600 million pounds of CO₂ emissions and generating over $500,000 for charities and municipalities.

At GreenFi, customers have the option of contributing to nonprofits that support climate action by rounding up every debit card purchase to the nearest dollar. For customers with an active GreenFi Plus subscription, the carbon output of every gallon of gas purchased with their debit card is mitigated by investments in carbon offset projects.

Recipients of donations from GreenFi include SeaTrees, which protects and regenerates blue carbon coastal ecosystems, and Rainforest Connection, which prevents illegal deforestation and stops animal poaching.

In 2024, GreenFi supported the reforestation efforts of the Creek Fire in Central California. By contributing 10% of “Pay What is Fair” proceeds (fees charged for checking and savings accounts) to American Forests' REPLANT program, the GreenFi community is helping restore more than 145 acres of conifer forests across the burn scars.

“The funds generated by every swipe of a customer’s debit card goes to plant about 500 trees an hour,” Newell says.

Consumer Benefits of Green Banking

In addition to knowing they are contributing to climate solutions rather than investing in industries that drive environmental damage, consumers who choose green banking for their personal or business accounts typically earn high yields on their deposits and pay lower rates on loans, LaRoe says. Climate First Bank is often cited for its high rates for savings accounts and CDs.

At GreenFi, customers can participate in the Green Marketplace, which makes it easier to identify products and services that are climate friendlier. In addition, customers can earn up to 6% cash back on those purchases.

“Currently, customers have access to checking and savings accounts, along with sustainability-focused mutual funds and IRA accounts,” Newell says. “We offer high yield savings accounts with rates up to 3%, which is better than the average bank right now.”

GreenFi partners with Coastal Community Bank and a network of other banks to place their deposits with institutions that pledge not to use them for fossil fuels, according to Newell.

“Our low cost model allows us to pass on the savings to our customers,” Newell says. “We plan to add green credit cards, EV loans, green mortgages and access to sustainable cryptocurrency in the future.”

Future of Green Finance

Climate First Bank is licensed in all 50 states and Puerto Rico, with deposit customers from every state and loan customers in about 30 states. The digitally focused company keeps costs low, plus they own a financial tech company with engineers and coders to manage their own technology.

“We’re in the crosshairs of Congress and the Trump administration right now with our commitment to sustainability, but we’ll keep doing what we’re doing,” LaRoe says. “We’re the fastest growing bank in the country because of our values. People want to know where their money is going.”

The market for climate conscious financial customers is about 100 million adults in the U.S., according to Newell.

“Climate impact is part of their decision-making making process,” Newell says. “They want to make great financial decisions and great climate decisions.”

Newell believes the sharp turn to the right on energy issues by the Trump administration could result in a positive outcome.

“This is extremely distressing to people and will lead to a rise in climate conscious consumers,” Newell says. “People will look for ways to have an impact themselves. As they become more distressed, the desire to find their own solutions increases in value.”

Publisher’s Note: This content is made possible by our Today’s Homeowner Campaign Sponsors: Whirlpool Corporation. Whirlpool Corporation takes sustainability seriously, in both their products and their operations. Learn more about building and buying homes that are more affordable and less resource intensive.