Challenges, Prices and Tech Stack
Challenges, Prices and Tech Stack
The Challenges for the Climate FinTech Hackathon are clustered in three categories: Retail-, Institutional- and Open-Challenges. In each category, a winning team will be selected and, additionally, one overall winner of the Climate FinTech Hack.
You are free to work on Web, Mobile and Desktop (or even Decentralized) Apps using the technology you feel most comfortable with.
1. Retail Challenges
a) Ecological footprint in your wallet
Challenge: Find a way to transparently inform private customers about their ecological footprint via their daily spending behaviour.
Background: Ecological footprints are a popular way to illustrate individual ecological impact and help making abstract impact measures much more tangible. This kind of relatable educational instruments show much potential to inform about customer choices in a meaningful way. Implemented as standalone estimations, that need to be manually fed with daily consumption data, they ,however, fail to unlock their informative potential. Automated and personalised calculations that are based on real consumption prove to be, at the same time, more user friendly and substantially more impactful. Using daily spending behaviour as a proxy for consumption is a promising starting point for personalised, real-world ecological footprint calculations.
Considerations: For the daily spending data format see the standard used also in the PSD2 transaction API: Amount, Sender, Date, IBAN Receiver. Take note of existing, prominent projects in this domain that include the Southpole Climate Credit Card and ANT Financials Carbon Footprints.
This challenge is presented by Zürcher Kantonalbank
b) Tell me more – about my customers
Challenge: Come up with a process to capture and model financial and non-financial preferences of retail/household investors.
Background: Regulatory requirements render the gathering of insights into clients’ preferences a complicated and costly endeavour. Expectations regarding risks, returns and the duration of investments are the established trinity of client preferences an investment manager needs to assess. In contrast, non-financial preferences that reflect ethical and sustainability values of clients are hardly ever recorded. Digital tools hold the promise to abolish boring questionnaires while retaining the ability for goal-driven information retrieval in a structured, documentable way.
Considerations: Develop a method to register client preferences that is intuitive and engaging, yet fully compliant with regulatory requirements. Make sure to capture tradeoffs (e.g. how much risk-adjusted return is an investor willing to forgo to be more sustainable)? Make use of cross-checks to ensure the consistency of answers and to detect potential behavioural biases. Think about how you could match the modeled preferences with actual investment products.
This challenge is presented by 2°ii
2. Institutional Challenges
a) Bank stress testing on climate change
Note: An updated version of the challenge will be posted shortly
Challenge: Build a financial model that show the impact of climate change on banks
The G20 countries just recently released recommendations called the TCFD recomendations. It’s bascially a set of ideas on what corporations, including banks, should report on climate change risks that their business is exposed to. Banks are now looking into what this means to their business. One important example are the capital requirements. A number of banks are now trying to find models that help them to estimate the effect of climate change on some of the important financial ratios of their business.
This challenge is presented by Carbon Delta
b) Fight climate change by predicting smart investments
Challenge: Develop machine-readable predictions for climate risks on equity level.
Background: Environmental, social, and governance (ESG) data complements more traditional financial metrics when evaluating corporate performance. It is used at financial institutions for investment analysis across all asset classes, company research and engagement, as well as screening and monitoring of investments or portfolios for ESG risks.
RepRisk captures and analyses ESG data related to companies from publicly available sources such as media and stakeholders. The dataset reflects the ESG risks associated with a specific company until today. For the case of climate change, information about current business models, energy supply, or immovable property could be combined with ESG risk data from RepRisk to build predictive models looking at emerging issues and future developments.
Considerations: For the Hackathon, the focus lies on the “E” of ESG, thus environmental data pertaining to climate change. To quickly dive deep into the topic, visit the information booth to consult the sample data and analytical platform provided by RepRisk for the Hackathon.
The challenge is presented by Reprisk
3. Open Challenges
a) Out of space: fast track for climate friendly lending
Challenge: Provide estimates of energy efficiency classifications for housing throughout Switzerland as a mortgage lending insights tool.
Background: Housing is responsible for up to a third of Swiss CO2 Emissions (and 45% of all energy consumption, 75% for heating). While sustainable heating systems already have a market share of 90% in newly built homes, the renovation of existing buildings progresses at an extremely slow pace. If nothing changes, it will take more than 100 years to reach standards that are compatible with Switzerland’s obligations in regard to climate change. At the same time, domestic mortgage lending represents an important activity for Swiss banks: In 2017 it reached more than 30% of their total balance sheets. Renovations are in the bank’s best interest, as they boost the value of buildings significantly. On average, the improvement of one efficiency class equals 10-15m2 of additional living space. Renovations are thus not only seen as important leverage against climate change, but also as value conservation of buildings as well as an effective prevention of stranded assets in case climate legislation for buildings’ emissions tighten over time.
Considerations: On a European level, the Energy efficient Mortgages Action Plan (EeMAP) aims at the standardized collection of data on real estate energy efficiency, but relies on a bottom-up collection on the level of individual households. At the Hackaton, we instead aim for top-down solutions based on estimations and intelligent data gathering and processing providing insights for the entire Swiss real estate market.
b) Gamify – creating a market place to gain climate-hero points
Challenge: Create a (decentralized) marketplace that lets the user collect and gain ‘points’ when he/she chooses climate friendly behaviour. Build in gamification elements and a loyalty rewards scheme.
Background: Incentivise climate friendly behaviour, simultaneously raising awareness and teach ‘better’ behaviour. For example, take the train or bike or bus, instead of your own car/ eat the veggi burger instead of the beef burger. Competition between teams might create and additional fun factor, let it be teams within an organisation or in school, or elsewhere. Take Pokemon Go as a great example and vision, with this time having a real purpose behind – fighting climate change. Consider how business could profit from such a tool, supporting loyalty program goals or addressing and winning potential new target groups. Blockchain / DLT might be a great foundation to build a marketplace for the ‘points’ acquired.
This challenge is presented by Capgemini
4. Freak Challenges
Got an awesome idea that fits the topic of Climate FinTech but none of the other challenges? Go for it! But make sure to quickly pitch it to someone from the Climate Hack team before you start developing.
We are happy to introduce you to the jury of the Climate FinTech Hackathon
Cindy Eicher, J.P. Morgan
Cindy Eicher recently joined J.P. Morgan (Suisse) SA as Senior Banker and Team Lead for Zurich. Prior to joining J.P.Morgan, she was an Executive Director at Deutsche Bank (Switzerland) AG, where her main responsibility was to aquire clients in the ultra high net worth segment, specifically focusing on family offices, multi-family offices and endowments and foundations. To these highly sophisticated clients she offered different customized financial solutions from the entire range of banking services, providing a cross-divisional and client-centric coverage.
Roland Cortivo, Swisscom
As FinTech Expert at Swisscom Digital Business, Roland Cortivo leverages FinTech collaboration as a driver of innovation, leads digital banking initiatives and supports corporate venturing at Swisscom. He is a subject matter expert for digital identity, trust services, open banking, intelligent conversation interfaces and crypto property services. Prior to his current position, he has worked as a senior consultant and program manager in the fields of banking and insurance at Swisscom, IBM, PwC and Credit Suisse. He holds a master degree in environmental engineering from ETH Zurich.
Renato Galli, Climate-KIC
Renato has scouted, screened and financed hundreds of cleantech start-ups running the Swiss chapter of Europe's largest cleantech Accelerator. With an educational background in business and finance, he co-founded a fashion start-up by the age of seventeen and scaled it up to a dozen points of sale. In his current role as "Start-up Community Manger", Renato is responsible for strengthening Climate-KIC's community through efficient matchmaking between start-ups, investors, corporates and public bodies.
Gerhard Wagner, ZKB
Leiter Team ESG Solutions, Mitglied der Direktion. Seit 2008 ist er bei der Zürcher Kantonalbank (ex Swisscanto) im Asset Management im Bereich ESG Solutions tätig. Herr Wagner ist ein anerkannter Experte in der Bewirtschaftung von nachhaltigen Anlagen und leitete zuletzt bei UBS das SRI-Team. Von 1994 bis 2001 arbeitete er als Wissenschaftler an der ETH/EAWAG im Bereich Klimaphysik. Gerhard Wagner schloss sein Physikstudium an der Universität Konstanz ab. Anschliessend doktorierte er in Naturwissenschaften (Dr. rer. nat.) an der ETH Zürich. Im Jahr 2006 erwarb er das Diplom zum Chartered Financial Analyst (CFA).
John Hucker, SFTA
We are bringing together experts and creative minds in the areas of finance, tech and sustainable development. The goal is to develop both, products and policy suggestions, allowing a swift move from ideas to implementation of innovative, sustainable financial services and products. In 2017 we concentrate our efforts on three main events.
During the Hackathon, Experts from partnering organizations such as WWF, F10 and Sarasin will be on place providing mentoring.