Meet Alejandro and Richard, two of FLIT Invest’s co-founders. We sat down with them to ask them a few questions.
When did you two meet?
Richard: I first met Alejandro in elementary school, representing our schools in running competitions. We also went to the same high school in our hometown [Budapest, Hungary], focused on mathematics and sciences. After that, we parted ways – Alejandro moved to New York, and I ended up in Switzerland, where we both pursued careers in finance.
What made you decide to start FLIT?
Richard: My fiancée and I wanted to open a digital, simple investment account with sustainable investing options. As busy professionals, we didn’t have time for fund selection, stock picking, and due diligence, so we wanted a managed, automated solution. We checked out every option and were completely dissatisfied with what was available. None offered real impact investing, only a greenwashed, watered-down version of ESG investing. We realized no impact tracking was available for users, even though we knew it was available for the rich.
Alejandro: When we saw that “sustainable” portfolios available included McDonald’s, Exxon Mobile and Coca-Cola in the largest holdings, we knew there had to be a better way to get people invested in truly sustainable portfolios. I knew that the unknowing investor would invest in a highly greenwashed solution despite having good intentions. And, since our global leaders have been failing us in the transition to a more sustainable world, we felt that we could make a difference if enough people came together and put their money where their heart is.
Why the name “FLIT”?
Alejandro: FLIT is a play on “Financial Literacy.” Financial education is so important and can help set you up for your future, yet most people don’t learn about it in school. To add to all of this, the professional financial services industry makes it even harder for the average investor to get started through confusing jargon and lack of transparency.
We wanted to make an easy-to-use investing app that will empower the next generation of investors to be confident in making financial decisions while making an impact.
What does sustainability mean to you?
Alejandro: To me, sustainability is the advancement of humanity in a way that’s not so heavily reliant on the consumption of finite resources. I believe all stakeholders have a responsibility in sustainability, from governments and corporations through individuals, and I believe that we can protect and support our planet while improving society in a lasting way.
What is an environmental or social issue you are passionate about?
Richard: I am passionate about quite a few issues, including access to education, access to clean water and of course equal rights for everyone. My climate anxiety is also high nowadays, I feel strongly about mitigating the climate crisis. I implemented small changes in my personal life, for example converting to a vegetarian diet, switching to a renewable energy provider, recycling whenever possible.
Alejandro: As you probably can tell from my previous answer related to the name FLIT, increasing financial literacy is very close to my heart. Empowering people with the skills to make sound financial decisions is an effective way to close the ever-growing wealth gap and set people up for financial freedom.
What is your favorite thing about FLIT?
Richard: It’s the team, the positive customer feedback, and the change we are making altogether.
Alejandro: The people I work with. I’m proud of being part of such a diverse team, especially related to our group’s distinct skillsets and cultures. Leading a product team where people can bring so many different perspectives helps us create a better product and a rewarding work environment.
What makes you excited to be a part of sustainable investing?
Alejandro: I see a paradigm shift happening across the industry where bad actors are being held accountable while sustainable companies are paving the way to the future.
Inflows to sustainable investments and the proliferation of new products (mainly ETFs and mutual funds) are exciting because it shows that people care. However, while I welcome the growing interest, we must stay vigilant in identifying greenwashing. [Note: Greenwashing is a term used to describe situations where companies mislead consumers by claiming to be eco-friendly or sustainable as a marketing scheme rather than as a core principle of their business model] Performing enhanced due diligence and ensuring that we invest in sustainable companies and not just a well-branded wrapper will be increasingly important as the number of investment options grows.
Finally, increasing disclosure requirements and regulatory trends are a huge positive for the industry. It enables incorporating sustainability-related data (such as scope 1,2 & 3 emissions, board composition, etc.) into the investment process in a quantifiable and measurable way.
What can FLIT do for me and my money?
Richard: We make sure that you are invested in companies aligned with your values. You will not be invested in companies that you try to avoid in your everyday life.
Alejandro: FLIT’s number 1 goal is for our users to reach their financial goals while making an impact – it’s a win-win for the world. One of the biggest myths around sustainable investing is that you must sacrifice returns to do good. The reality is that sustainable investing has proven better than traditional investing, not only in terms of positive impact generated but also in terms of financial performance. It’s not one or the other. You can have both, and we are democratizing this for everyone with FLIT.
What is FLIT’s vision for the future?
Richard: To democratize impact investing for everyone. Unfortunately, today, average retail investors (meaning people with less than 1 million dollars in financial assets) don’t have the same access to impact investing, like rich and ultra-rich do. We’re on a mission to allow everyone to generate measurable environmental and social impact alongside a financial return.
