Important environmental trends to watch for in the Fintech industry

LONDON, 30 March 2023 /PRNewswire/ — There is a growing number of environmentally friendly customers being attracted to fintech services, as it is easier to measure the green credentials of newer players than those involved in traditional finance. This is according to virtual payment card provider Lanista.

Jeremy Babercomments the CEO of Lanistar: “The initial attraction of new fintechs was a strong focus on benefits such as shiny holographic cards and powerful in-app or platform-based services. But now, in an effort to attract environmentally conscious customers and implement more sustainable industry practices, the more environmentally focused fintech trends we expect to see come to dominate the industry, and the players who lean into these trends will be the winners in the battle to appeal to this new demographic.

“It’s a great time to be involved in the fintech industry. Not only is it an exciting industry, but also a socially conscious one. Customers are now much more discerning when it comes to choosing financial services and are likely to scrutinize the green credentials of suppliers before they choose.”

With the continued growth of green initiatives across the fintech industry, what trends are most likely to dominate the industry in the near future?

1) Goodbye plastic

“Given that many fintechs – especially challenger banks – stood out from the crowd in the early days by offering a shiny new card to their customers, it would seem self-inflicted to phase them out. However, as of 2021, there were over 150 million physical bank cards in circulating all over the UK There’s a lot of plastic, continued Baber.

“We are likely to see an increasing number of fintechs ditch the shiny cards in an effort to curb plastic pollution. Now that banking details and transactions are increasingly app-based, this trend is likely to gain further momentum in the green fintech revolution.”

2) Reforestation is a key contribution

“Deforestation has had an impact on our environment for decades. This is why a growing number of fintechs are working with charities like One Tree Planted to counteract the effects of deforestation and offset the impact of their own carbon emissions.

“Initiatives such as planting trees for new customers, at certain intervals, or planting more trees when a business milestone is reached, will make a difference in forest size to our environment in the long term,” Baber added.

3) Look at the power of AI

The possibilities of artificial intelligence have been a central topic of conversation in the first months of 2023, and the latest developments in AI could play a decisive role in the success of fintech’s green initiatives.

Baber continued: “Recent developments in AI have meant that companies now have a very powerful tool at their disposal. Leveraging AI to monitor environmental targets will be a trend we can expect to see grow in the coming months and years.”

Instead of setting environmental, social and governance (ESG) goals that then fall to the back of the priority list, AI can now do the legwork for fintechs, ensuring they stay on track. It is now possible to leverage AI to monitor fintechs’ data on key areas of environmental performance, such as energy consumption, water waste, carbon footprint and so on.

This will be a major trend as ESG measures come under much greater scrutiny. At its core, however, AI will be a powerful tool to ensure that fintech stays on track with its goals.

4) Set clear and achievable ESG goals

Baber added: “In fintech, transparency is a big part of what sets us apart from traditional financial institutions. Fintech customers are often more environmentally conscious and want to know how dedicated their fintech provider is to their own ESG goals.

“There is a lot of value in fintechs publishing their ESG goals to reassure customers that environmental considerations are key to any decision made. Additionally, potential customers can look at published ESG goals and seeing that progress is being made can be the last push they need to become a customer.”

5) The rise of green banking

Amidst greenwashing rows involving a number of traditional financial institutions, fintech will increasingly embrace the concept of green banking.

The idea of ​​green banking is that institutions should prioritize achieving their climate goals, rather than having a “profit above all else” approach to banking. Green banking involves investing in initiatives such as clean energy projects and avoiding the financing of fossil fuels.

Baber continued: “Green banking avoids any investment in environmentally damaging markets. More fintechs are likely to embrace green banking this year to showcase their green credentials.”

“The record levels of green investment we’ve seen across fintech will form a solid foundation for the industry to embrace more sustainable business practices. If these practices see widespread adoption, other industries will come to look to fintech as the gold standard for green business,” concluded Babes.

6. Green in Crypto Currency

A final sector to note among the growth of green finance is crypto currency.

“We believe crypto-currencies are here to stay, but to need to improve their carbon footprint, Baber said.

It is well known Bitcoin is energy heavy throughout crypto mining processes, like many of its peers. The industry is leaning towards a more environmentally conscious methodology, but there is still considerable room for improvement, for which Baber proposed the following solutions.

“This part of the fintech sector needs to agree to deliver plans to deliver carbon compensation. This can be done either through a percentage or the transaction fees or a carbon fee created in the blockchain”.

Whatever the execution, to continue to thrive in the green financial age, it will crypto the economy must change. With projects such as Ethereumthat the change is beginning to be seen, but it is clear that there is still work to be done.

About Lanistar

Lanistar was founded in 2019 by entrepreneur Gurhan Kiziloz, whose ambition is to build a fintech unicorn that truly challenges the status quo of old-fashioned, traditional banking services.

Using modern technology and working with industry-leading partners, the Lanistar team is building a platform that provides a total ‘AnyMoney’ solution for its clients. This will give customers access to all their financial products in one place, from general bank accounts right up to cryptocurrency.

Lanistar is not a bank, but a payment card provider, operating as an intermediary offering financial services to end users. Lanistar offers the services of a typical bank account through its banking partner Modulr, but with advanced UI/UX and design to make it easier and safer than high street banks.

Lanistar Ltd is a registered EMD agent (FRN:902996) of Modulr FS Limited and can distribute and redeem e-money and provide payment services. Modulr FS Limited is authorized by the Financial Conduct Authority (“FCA”) under the Electronic Money Regulations 2011 (FRN: 900573) to issue electronic money and to provide payment services. Lanistar Limited (“Lanistar”) currently only carries our pre-launch marketing in preparation for the future launch of Lanistar-branded payment cards (“Cards”). Lanistar is finalizing agreements with various partner firms that are authorized and/or regulated (by the FCA and other overseas regulators) and the cards will only be launched and launched once these arrangements are in place.

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SOURCE Lanistar