After leaving jobs at EQT and Spotify, Datia founders Manne Larsson and Juan Manuel Serruya launched a new app for everyday investors. It not only helps people find investments that fit with their social and environmental values, but also lifts the lid on how ethical the investments people already hold actually are. To make it possible, Datia is using Tink’s account aggregation technology.
Why go green?
For many years, the narrative was that, if you want to invest ethically, you have to sacrifice returns - but that’s simply no longer the case. Recent research from the International Monetary Fund (IMF) shows that sustainable investments match the performance of regular investments. So if performance is the same, why isn’t everyone investing ethically?
The fact is that it’s still extremely difficult for people to fully understand the social and environmental impact of the investments they make - because most people invest in funds that aren’t very transparent. Yet if you care about your carbon footprint, investing money in ‘green’ funds can make 27 times more difference to the planet than reducing the amount of meat you eat, flying less, using public transport or reducing water use, according to Nordea.
Investors, small or large, can now go to Datia to research funds that might be of interest to them, and analyse their own portfolio. It works like this.
The first thing a user will be asked is what’s important to them - from companies with a high proportion of female leaders and those that have equal pay, to getting revenue from clean sources, like clean energy or investment in forests. The app then scores investments and shows their financial performance, alongside detailed information on governance, and their environmental and social impact, that users can track over time in the app.
The service also allows users to analyse their existing investments to see a detailed picture of what their money currently supports. For instance, many people are unknowingly investing in things like animal testing, weapons or tobacco, within their pension funds or other personal investments.
By embedding Tink’s account aggregation technology into Datia, users can link to their payment and investment accounts in an instant, and give Datia permission to view their investment holdings in real-time. This way, Datia knows that the information is accurate, which is essential in being able to give users a detailed analysis.
Without this step, users would have to manually input the companies or funds they are invested in, and know exactly how much they have invested - which would cause drop offs during onboarding and errors in the information gathered.
With account aggregation technology, Datia is increasing investment transparency, by comparing social and environmental behaviour and presenting it to investors in a way that no other app is offering right now.
Pay as you grow
Why did Datia choose to build with Tink? With the Tink Console, businesses can keep costs low by starting on a free platform, and pay as they grow with an open banking solution they can build upon. With well documented APIs, Datia found it easy to get started, with just a day or two of implementation.
In the future, Datia has big plans to increase functionality, so that people can buy or switch investments within the app, and widen their scope beyond Sweden to the rest of the Nordics and Europe.
With easy access to open banking technology, anyone can create the financial services of the future. To find out more about building on the Tink Console check out our handy guide to getting started.