Sustainability and Fintech
Innovation is a crucial part of growth and evolution. The innovative capabilities of technology have caused a ripple effect on all other industries that are associated with them. Fintech is the outcome of one such coalescence between finance and technology. Most of us would agree that finance is one of the key elements that drive our world. With finance attaining technological supplements, there is little doubt about how far this industry can go.
However, with the world expanding because of the growing technology and human population, the sharp edge of the sword continuously falls on nature and our environment, shortening the life of our planet. Extensive forested areas have been shaved off to make space for colonies and residences. Nature has lost its capacity to accommodate more trash and garbage that we humans are relentlessly creating.
As climate change overpowers most of our conversations and discussions, the search for sustainable solutions in prime industries like fintech has shot up like never before.
In today’s article, we explore how fintech can help create sustainable “greener” solutions, which would help the industry and the entire planet.
Sustainability and Fintech
Sustainability has become of our key targets when it comes to world functions and systems. Fintech’s boundless scope can help create many sustainable solutions, like the following:
Paperless Transactions
Going paperless has been fintech’s biggest strength ever since its onset. The financial industry’s digitization was based on the idea of doing away with paper. Of course, at that time, the focus was more on efficiency and technological benefits than sustainability.
Greener Technologies
Fintech has newer, better technologies, like artificial intelligence, machine learning, big data, etc., rendering it a powerful position in the world. Through these technologies, the fintech industry can create greener supply chains, increase transparency, and liquidate the involvement of more middle members, thus helping build a more sustainable setup that reduces waste.
Measure Carbon Footprints
Companies are gradually getting compelled to be more environment-oriented. The dealings and systems of fintech companies are digitized, which can help them monitor and track their carbon footprints. By monitoring their carbon footprints, fintech firms can identify which activities create larger carbon footprints, thus guiding them to more sustainable futures.
Switch the USP
As more customers grow conscious about climate change and sustainability, there is a growing need for more sustainable brands. Not only in fintech, but companies in all industries can make sustainability their USP by employing more sustainable choices.
Top Sustainable Fintech Companies
Numerous fintech companies are changing their business models to accommodate more sustainable choices and ideas. While most of these sustainable fintech organizations are newer companies starting to build their business on the futuristic concept of sustainability, some older companies too, are trying to pave the way to include more sustainable solutions in their businesses. The companies mentioned below are some of the most influential fintech companies in terms of sustainability.
TreeCard
As its name suggests, TreeCard has come up with a brilliant idea of doing away with plastic cards and creating cards out of recycled waste. The company currently caters to the European market, where it makes its cards out of waste plastic and wood. TreeCard gives almost 80% of its profits to reforestation agencies and organizations to help reverse deforestation by planting more trees. Apart from recycling and reforestation, the company is also involved in many other activities focused on sustainability.
Aspiration
Aspiration is an American bank with two core missions; one of funding environmental projects worldwide and the second of tackling big oil corporations to curb them from ruining our planet. The company also rounds up and diverts the small change earned from customer transactions to plant trees.
Starling Bank
This British bank has become one of the most sustainable companies by going 100% paperless and digital. The prime quality of the Starling Bank is that it runs on renewable energy. The bank has actively championed recycling plastic to produce their debit cards and reforestation to cut carbon emissions.
Triodos Bank
The Triodos Bank is another British bank that has also set a stellar record in sustainability. The bank only partners and associates with sustainable and environment-friendly businesses and goes on to publish its data, which reinforces its commitment to sustainability.
Clim8
Clim8 is a London-based company committed to bringing sustainable investments to its clients. The company enables environment-focused investments that not only give good monetary returns but also save and nurture the environment.
Final Thoughts
The ideas behind each of these businesses are incredible and inspiring. The world is in immense danger with rising sea levels, global warming, climate changes, etc. Most of us are aware of the environment being in grave danger. With industries like fintech stepping up to the challenge of improving our environment’s health, an instant hope rises in our hearts, speaking of a brighter future. Sustainability is crucial for our future, and fintech realizes it like no other.
