fintech stories

A digital bank to save the environment: all you need to know about Tomorrow

tomorrow bank

Tomorrow is a fintech and neobank that started in 2018. It was the brainchild of founders Inas Nureldin, Jakob Berndt, and Michael Schweikart. The company is a digital platform whose sole mission is to use money, and personal finances to spearhead environmental change. It is a financial platform meant to foster sustainability — combining smart technological tools meant to not only make your economic life easier but also contribute to a better future. Let’s break down what Tomorrow actually is, when it was founded, and all its amazing features. 

What is Tomorrow?

Tomorrow is an all-purpose financial start-up that’s evolved from a simple neobank digital model to include other features like investing. It has all the benefits of a bank, plus a few extra ones that might be lacking in most digital wallets. 

The main goal of Tomorrow is to use your money positively. To help the planet and find sustainable solutions to many of its woes. 

How does Tomorrow work?

Most banks work under the following model: The money you give them ends up in giro accounts. They don’t really, despite popular belief, lock it up in a vault. No, they use and invest it. That’s why they give you interest - almost nothing - on your deposits. It’s also why they do everything in their power to keep you within their ecosystem and maintain your money, within their coffers as long as possible. 

Now, how they invest that money is strictly up to their board and their value system. Most banks, as you can imagine, select investments that fit their overall financial goals. The better ROI, the more they’ll invest in X security, stock, commodity, or asset. 

The bank’s selection process isn’t hindered, in most cases, by moral issues that might surround an investment, just the return. They buy stock from weapons manufactures, from companies that have supported child labor, from the coal industry, etc — just as long as they get a good return.

Tomorrow, meanwhile, promises to use its customers' deposits to invest and bankroll companies that are trying to better the world. Companies that have a track record for promoting dynamic change within their industry, changes that embrace the pillars of sustainability. For example companies or organizations that invest in solar energy. 

Every company or project is analyzed and scrutinized by an ethic’s goal. A board that uses over 100 positive or negative criteria, most based on the UN’s Sustainable Development Goals. The screening process is meant to prevent conflict of interest and not only pick companies with a “green” philosophy, but those that have a good return. The Impact Council, the independent body of experts that pick the company or project, votes and then publishes a report - that all Tomorrow members can access - on why it hedged its bet on that asset. Completely transparent. 

Many banks offer all manner of perks to keep you within their framework - discounts, VIP lounges at airports, insurance, etc - Tomorrow has some of these fringe benefits but believes they are non-starters. Tomorrow understands that the true advantage it offers its clients is a better future for the planet. 

So far, Tomorrow is off to a great start with over $20 million in funding procured in 3 rounds, 98k plus members, 48million trees protected, and over $41.5 million of euros invested into companies that promote environmental change. 

Features of Tomorrow 

As a neobank with fintech tools, Tomorrow has a couple of really good addons and features. Some that are rather innovative. 

  • It allows its members to analyze their carbon footprint based on their purchasing habits.
  • Tomorrow credit cards have a donation function. Most credit cards work on the basis that merchants pay a fee for using them within their stores. For each payment or transaction, the merchant pays a certain amount to the bank. Tomorrow circumvents and puts this model on its head. It still charges this fee, the only difference is that it funnels a huge part of it to a rainforest project in Brazil. Account-holders can even use the Tomorrow app to track how many trees have been planted or saved thanks to their purchase. 
  • A wood credit card, that’s included in most account options.
  • Worldwide transfer that’s free.
  • Tools that help you manage your money with ease. Tools that give you insight into your habits and how to reach financial goals quicker.
  • Your account is protected with the latest security standards, and your money is insured up to 100,000 Euros.
  • 100% mobile banking
  • Real-time transactions
  • Visa Debit card.
  • ApplePay and Google Pay
  • 24-hour Phone, email, and live chat. 

Tomorrow as of 2021

Right now Tomorrow is offering three different accounts. Each with its perks. 

  • The Now account: the easiest and most affordable of the bunch. With quick and easy mobile banking.
  • The Change account: a more flexible option that includes different card designs, shared accounts, and up to 5 saving goals. 
  • The Zero account: a premium account that offers CO2 carbon footprint analysis, unlimited savings goals, unlimited worldwide withdrawals, and one of the only wooden cards in existence. 

In the future, Tomorrow plans to expand its reach and offer investing solutions, like brokerage, for its members. Letting its users invest in the same companies Tomorrow is sponsoring and funding.