Should All Fintechs Ensure Significant Social Impact?
The fintech industry is constantly evolving, reshaping banking, payments, and financial services, as highlighted in The Fintech Times. While many fintechs are celebrated for driving financial inclusion and encouraging better financial habits, the question arises: do they have a responsibility to ensure a positive social impact? Here’s what industry experts had to say.
Peter Wood, CTO of Spectrum Search, emphasizes that fintechs have a duty to society: «Their foundation lies in democratising access to financial tools and addressing inefficiencies in traditional systems. By aligning their services with societal needs, fintechs can tackle financial exclusion and inequality.»
He highlights that purpose-driven fintechs can thrive by embedding social impact into their core operations, fostering customer trust through transparency and collaboration.
Similarly, Judith Lamb, Chief Human Resources Officer at CloudPay, notes: «Social responsibility is becoming more critical for businesses, including fintech firms… Customers and clients are demanding it, so it is vital that fintech businesses focus on how they are driving a positive social impact.»
Some experts question the effectiveness of current social impact efforts. Sunny Lu, founder of VeChain, states: «Without metrics or even a definition, ‘positive social impact’ is meaningless. But do fintechs have a responsibility to make measurable improvements to the environment and society? Yes, of course, they do.»
June Ou, CEO of Provenance Blockchain, echoes this concern: «Corporations should focus on doing right by the consumer while increasing the success of the organisation for investors. Decisions should not be detrimental to the customer and should aim to be positive.»
Adrienne Youngman, CEO of Partisia Blockchain Foundation, views blockchain as a game-changer: «The driving responsibility of any commercial business is to maximise shareholder value. Blockchain and decentralised finance matter because they enable radically new structures and incentives for financial inclusion.»
James Lynn, co-founder of Currensea, believes fintechs’ agility is a unique advantage: «Fintechs can introduce change much more quickly… Delivering positive social impact should be core to any organisation. For example, Currensea cardholders have removed over 13 million plastic bottles from the ocean through donations linked to their spending.»
Joshua Summers, CEO of EnFi, advocates for balancing profit and purpose: «Most fintechs prioritise either shareholder returns or social impact, rarely achieving both. This can change through models like tiered pricing and partnerships with governments and NGOs.»
Rehana Mitha, MD at Edenred Payment Solutions, sees fintechs as pivotal in bridging gaps in financial inclusion: «The industry provides faster, cheaper, and more accessible services, which contribute to positive social impact. Fintechs must embed customer-centric values and ethical practices into their DNA to lead meaningful change.»
Fintechs hold the power to reshape financial systems while addressing societal challenges. The consensus is clear: fintechs that align profit with purpose can drive trust, innovation, and meaningful social impact. However, this requires a commitment to measurable outcomes, ethical practices, and collaboration with diverse stakeholders.