BehindLogin’s recent guest blog contribution for TechSpark as part of their February FinTech Month 2023.
Our Founder, Oliver Lane, explored the rise in popularity of Green FinTech, the drivers that have shaped this trend and the themes and solutions that have emerged to meet these evolving environmentally conscious consumer needs.
In recent years, there has been a significant rise in the number of green fintech apps that aim to promote sustainable and environmentally-friendly financial practices. These apps offer a range of services such as carbon offsetting, investment tracking, and financial education on sustainable investing.
Driver #1
One of the major drivers behind this trend is the growing awareness of the negative impact of traditional financial practices on the environment. The financial industry is responsible for a significant portion of global greenhouse gas emissions, and consumers are becoming increasingly conscious of the need to reduce their carbon footprint. This has led to a growing demand for financial products and services that are environmentally-friendly and sustainable.
Driver #2
Another factor contributing to the rise of green fintech apps is the increased availability of data and technology that enables companies to track and measure the environmental impact of their products and services. This has made it easier for consumers to make informed decisions about their financial choices and for companies to create innovative solutions that promote sustainability.
Driver #3
One of the most popular green fintech apps is the carbon offsetting app, which allows consumers to offset the carbon emissions associated with their financial activities. These apps calculate the carbon footprint of a consumer’s financial activities and then invest in carbon offsetting projects such as renewable energy and reforestation. This not only helps to reduce the consumer’s carbon footprint but also supports sustainable development projects.
Driver #4
Another popular green fintech app is the investment tracking app, which allows consumers to track the environmental, social, and governance (ESG) performance of their investments. These apps provide information on the environmental impact of a company’s operations, as well as its social and governance practices. This enables consumers to make more informed decisions about where to invest their money and supports the growth of sustainable companies.
Driver #5
Another trend in the green fintech space is the rise of financial education apps that provide information on sustainable investing. These apps educate consumers about the benefits of investing in companies that prioritize environmental and social issues, and provide tools and resources to help them make more informed investment decisions.
The rise of green fintech apps is not only good for the environment but also for consumers, as it allows them to make more informed financial decisions and invest in companies that align with their values. Additionally, it also helps to promote sustainable development and reduce the financial industry’s negative impact on the environment.
However, it is important to note that while green fintech apps are a step in the right direction, there is still much work to be done to ensure that the financial industry as a whole is sustainable and environmentally-friendly. Companies and governments need to take further steps to reduce the financial industry’s carbon footprint and promote sustainable practices.
