Green challenger bank Aspiration going public via a SPAC

Aspiration Partners, one of the first challenger banks to focus on the environment, is going public, the company said Wednesday.

Los Angeles-based Aspiration is merging with InterPrivate III Financial Partners Inc., a special-purpose acquisition company, in a deal valued at $2.3 billion. The transaction is expected to close in the fourth quarter, after which the company will be named Aspiration Inc. and trade on the New York Stock Exchange under the ticker symbol ASP.

Fintechs, including other challenger banks such as BankMobile and MoneyLion, have been popular targets for SPACs this year.

At the same time, Aspiration's environmental focus is part of a broader effort by financial companies — including some traditional banks — to decarbonize their portfolios, help investors identify sustainable options, create deposit products that fund sustainable projects and partner with fintechs to support green loans.

“Through its merger with InterPrivate, Aspiration will become the first ESG-driven fintech, a unique platform enabling individuals and enterprises to integrate and automate impact into their everyday financial and commercial transactions,” Ahmed Fattouh, chairman and CEO of InterPrivate III, said in a press release in referencing environmental, social and governance goals.

Aspiration offers a savings account, a debit card and investment accounts and says customers' money won't be used to fund fossil-fuels projects. The debit cards are issued by Coastal Community Bank in Everett, Washington, and its deposits are held in one or more banks insured by the Federal Deposit Insurance Corp., the company says.

Aspiration, which has more than 5 million customers, provides cash back when they buy from companies that operate ethically. It recently launched a Plant Your Change program that lets customers round each purchase made with its debit card to the nearest whole dollar to put toward new trees. Its individual retirement account invests with sustainable companies, and its credit card encourages users to go carbon-neutral. Another arm of the company partners with businesses to be more environmentally conscious.

The company is expected to have more than $400 million to pour into marketing campaigns and invest in product innovation and technology.

“Aspiration is in the business of fighting the climate crisis,” Andrei Cherny, CEO and co-founder of Aspiration, said in the release. “We help people and businesses build sustainable impact into what they do every day by making it easy, automated, and powerful.”