The latest CSR trend in fintech: how technology companies are helping to build a more sustainable future

KUALA LUMPUR, MALAYSIA – Media OutReach – 9 February 2023 – Winston Churchill famously said, ‘We live by what we get, but we live by what we give.’ This approach appears to be behind the global transformation of businesses towards a more community-oriented model that seeks to ensure that the local community and, more broadly, the world thrives. With this goal in mind, some companies are effectively reducing their carbon footprint. For example, the Mercedes-Benz Group’s Ambition 2039 strategy involves moving to an all-electric car fleet. Other companies aim to support local communities that are facing challenges often related to education, infrastructure and environmental conditions.

What does this trend, or rather a new societal norm, have to do with fintech companies? In what ways can they help, and what actions are they already taking to improve our world? This article aims to answer these questions for new and already established fintech companies, as well as for their customers.

Fintech companies and social responsibility

Fintech companies can advance social causes in several unique ways: from bringing financial services to people who haven’t had access to them to promoting financial literacy. Here are some of the most pressing issues fintech companies are already addressing:

• Giving made easier. Some companies, such as Fidelity Charitable, present an opportunity to contribute cash, securities and other assets to donor-advised funds at public charities. This makes it possible to increase the tax savings for donors. Others, such as Binance Charity, are attempting to revolutionize global giving by using Web3 technology, which makes donations more transparent, efficient and, most importantly, direct.
• Serving the underserved. Economic exclusion in rural and underdeveloped areas has become a major problem many fintech companies decide to concentrate their CSR activities around. In some cases, the entire purpose of creating a fintech service is built around bridging this gap. For example, the mobile financial service bKash was specifically developed to cover the 70% of the Bangladeshi population who live in rural areas and have limited access to formal banking services.
• Promote financial literacy. Unfortunately, few schools teach banking, investing and saving, when these are some of the most important skills students may need in adulthood. Fintech companies are becoming increasingly aware of the issue and are beginning to develop educational courses that serve their customers and a much wider audience.

Other charitable activities major fintech companies are involved in include environmental projects, such as HSBC’s efforts to help preserve Taipei’s Guandu Nature Park in Taiwan, emergency aid and various initiatives that respond to the UN’s sustainability goals.

What can just one fintech company do to promote social causes worldwide?

Let’s take one fintech company to illustrate the CSR approach in fintech and its impact. In 2022, international Forex broker OctaFX directed its efforts to help local communities overcome global challenges. Here’s what it managed to achieve:

• The broker helped 1,855 people and 46 small businesses in emergency situations, mostly during natural disasters.
• OctaFX supported the educational efforts of 4,452 students and 50 schools and organizations by funding scholarships, extracurricular educational workshops, professional courses, renovating and building new schools and classrooms, purchasing computers and other necessary educational equipment.

In total, OctaFX helped more than 6,000 people in several countries, including India, Indonesia, Malaysia, Mexico, Nigeria and Pakistan. Some of the most impressive projects include the following:

• In India, the broker helped build six computer classrooms for the Lala Bulaki Das Babu Ram Sahai Hindu Mahila Inter College in Tilhar.
• In Malaysia, OctaFX provided twelve months’ allowances to six students pursuing various degrees at Malaysian universities.
• In Indonesia, the mediator provided humanitarian assistance to families affected by an earthquake in the Cianjur district, which left 58,362 people injured and displaced.
• In Pakistan, OctaFX funded the Health, Education and Safety (HES) project, which aimed to improve the health, education and safety of children in twelve rural areas in Muzzafargarh, Punjab.
• In Nigeria, OctaFX provided fifty unemployed youth with ICT training as part of the charity’s Youth Employability Skills (YES) project.
• In Mexico, the broker is currently sponsoring the Empowerment Program, which will benefit 110 primary school students of the Fundación Dr. José María Álvarez IAP

The current CSR trend in the fintech industry is set to expand as stakeholders and employees alike expect their values ​​to align with their companies. As more companies begin to actively participate in socially beneficial projects, we are getting even closer to a more sustainable, educated and healthy future for the world.

Hashtag: #OctaFX

The issuer is solely responsible for the content of this announcement.

About OctaFX

OctaFX is a global broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and a range of services already used by clients from 150 countries with more than 21 million trading accounts. The free educational webinars, articles and analytical tools they offer help clients achieve their investment goals.

The company is involved in an extensive network of charitable and humanitarian initiatives, including improving education infrastructure and short-notice relief projects supporting local communities and small and medium-sized businesses.

On a side note, OctaFX has also won 60 awards since its foundation, including the ‘Best Online Broker Global 2022’ award from World Business Outlook and the ‘Best Global Broker Asia 2022’ award from International Business Magazine.