Former Tesla executive Tim Newell is set to spin off Aspiration’s consumer financial services division.

Former Tesla executive Tim Newell has struck a deal with climate finance company Aspiration Partners to carve out its consumer financial services division.

Newell will helm the newly formed independent entity, which will retain the Aspiration brand name and focus on providing environmentally sustainable financial products. In a LinkedIn post, Newell announced the completion of a management buyout, positioning the spin-off company to cater to the needs of US consumers seeking climate-friendly financial solutions.

The new venture aims to expand its product offerings beyond sustainable savings, checking, and investment accounts to include lending, investment, banking, credit, and insurance services.

Under Newell’s leadership, Mission Financial Partners, founded in 2023, will serve as the operational backbone for the Aspiration brand. Although Mission Financial Partners operates as a fintech rather than a bank, banking services on the Aspiration platform will be facilitated by Coastal Community Bank.

Notably, the entire management team and staff from Aspiration’s consumer business division have opted to join Newell, forming the core team of the newly established venture.

Explaining the rationale behind the spin-off in a blog post on the company website, Newell highlighted the need for a standalone enterprise to maintain focus on the original consumer-centric mission of Aspiration. As the former COO of Aspiration Partners, Newell noted that the company’s evolution into climate finance for large enterprises brought about competing priorities, necessitating a dedicated entity to cater exclusively to consumer needs.

Source: fintechfutures.com