FINTECH AND SUSTAINABLE DEVELOPMENT : CASE STUDIES
TreeCard , which makes debit cards out of sustainably sourced wood . These natural alternatives to plastics are biodegradable and made using waste material from the lumber industry ; additionally , they provide economic benefits to local communities . When someone uses the TreeCard Debit Card to make a payment , Mastercard collects an interchange fee and pays the company , which it then uses to plant trees . It is a symbiotic relationship in which everyone benefits : the company creates jobs and reduces CO ² emissions in local ecosystems while consumers receive a green card .
" Climate change is here , and it ' s important for fintech companies to play a role in mitigating the impact . Fintech companies can utilise their arsenal of innovative technology and financing tools to incentivise and scale-up consumer adoption of cleantech , which is particularly important for decarbonising buildings ," noted Lauren Salz , CEO and co-founder of
Sealed .
2 ) KIVA : providing loans to help people escape poverty Kiva is a US-based social enterprise using technology to connect people who need money with people who want to lend it . Its mission is to break the cycle of poverty by providing access to capital for entrepreneurs around the world . The organisation has a 97 % repayment rate , which is a testament to lenders ' trust in the borrowers .
Since 2005 , Kiva has crowdfunded more than $ 1.33bn USD in loans and has helped to support over one million people . This form of microfinancing has helped to provide a financial lifeline to millions of people , including women and refugees , who would otherwise not have access to capital .
" In short , financial inclusion not only benefits underserved individuals but also makes society and the economy stronger and more resilient ," said Shane Holdaway , Founder and CEO of Mission Lane .
There is an increase in fintech companies focusing on financial inclusion , whether in the " buy now , pay later " ( BNPL ) field or the creditissuing vertical , including
Kueski ,
Mission Lane , and
Lulalend , to name a few ..
3 ) Circa5000 : investing in companies solving global issues Circa500 is a UK-based fintech allowing people to invest in companies with a positive social and environmental impact . Furthermore , it is transparent about where investors ' money is going by providing information on each company ' s impact , including their energy consumption as well as equality , diversity and inclusion ( ED & I ) statistics .
Manuel Antunes , Venture Capitalist at
Mustard Seed MAZE , an impact fund with € 45m EUR of assets under management ( AUM ), with 24 companies in its portfolio to date , thinks " financial players are making efficient risk-return decisions by deploying more capital into ( a ) impact investing and ( b ) sustainable investments ."
" These investments give the opportunity to either ( a ) be exposed to businesses solving large environmental or social problems , or ( b ) reduce the climate and reputational risks of a given investment ," added Manuel .