What sets a “Fintech for Good” company apart from the rest with 0VIX, Milken Institute and more

This August at Fintech Times, we want to highlight some of the amazing things fintechs are doing around the world. We always hear about “the latest breakthrough innovation that does good for society,” but do these innovations do good for those already in an advantageous position, or do they help make the world of finance more accessible?

For us at The Fintech Times, fintech for good means companies that want to help people who desperately need it, and prioritize financial inclusion and sustainability.

Although this is what fintech for good means to us, we wanted to reach out to the rest of the industry to understand what they think fintech for good means, and what separates a company that does well from the rest. In this article we hear from 0VIX, The milk Institute, Modulus, Gretel, OriginDelete, First Wealth, AAZZURand Killer whales.

Navigating financial problems is easy

Garry Kruglyakovfounder of 0VIX and GOGO Protocols at 0VIX and GOGO Protocols, told us: “A ‘fintech for good’ company identifies a real solution that can help users navigate financial issues seamlessly. The key to standing out from the rest is education and access: if a user has limited understanding of general economics and little access to innovative technology, they will not get value from fintech that does not account for access.Fintech companies must have a deep understanding of consumer needs if they want to succeed in the market .”

Ability to strengthen

Nicole ValentineEsq., fintech director at the Milken Institute said: “The ability to empower! When end users are able to achieve their financial goals by leveraging fintech products or services to access the financial ecosystem, it is the very fintech for good and how it should work. Companies that are focused on creating products and services that are affordable and inclusive are ideal models for the industry. Fintech’s advantage is the ability to deliver financial services efficiently using its technological power. A “fintech for “good” company effectively harnesses the power of technology to reach and expand access to capital for people, communities and business owners.”

Confirms authenticity

Richard GardnerCEO of Modulus said: “A ‘company for good’, fintech or otherwise, can be measured by what it does when the cameras aren’t rolling. Just as you can judge a person by what they do when no one is watching. The best companies build their social responsibility directly into their culture.

“Fintech innovation can significantly impact developing economies. I think one place to look is new technologies that combine fintehc and regtech with AI to curb fraud and potentially save hundreds of thousands of lives by preventing the sale of counterfeit medicines, as a 2017 PricewaterhouseCoopers paper listed as a market worth $163-217 billion annually. But those billions come at a cost, with fake surgeries accounting for roughly a million deaths globally. Perhaps surprisingly, in 2015, American Society for Microbiology concluded that approximately 10 percent of all medicinal products in circulation are counterfeit. This is due to a number of reasons, including weak pharmaceutical regulatory policies in many developing countries.

“Among the medicines most frequently counterfeited, antimalarial treatments are the king. In just one year, World Health Organization estimated that over 100,000 malaria deaths in sub-Saharan Africa were caused by counterfeit drugs. Counterfeit drugs run the gamut, often looking identical to brand-name drugs, although they lack active ingredients, making them essentially placebos. Even worse, some counterfeits have less than correct doses of active ingredients, meaning that the counterfeit is actually helping to create drug resistance to genuine drugs across entire geographic regions.

“This is a great example of how fintech can actually improve the quality of life of an entire region. Coupled with security measures, including holographic security tape and QR codes, fintech would allow doctors and hospitals receiving shipments of medicines to verify authenticity using just a smartphone. While it would not end counterfeiting practices, it would certainly severely slow the market for counterfeiters, especially in areas where pharmaceutical regulation is in its infancy.”

Puts vulnerable customers at the forefront

Duncan StevensCEO of Gretel said, “Many financial institutions are realizing that they need to do more to help and support underserved communities close to home, particularly those classed as vulnerable. The FCA has put vulnerable customers at the forefront of planning for financial firms, and the large number people – over 27 million – who are now considered vulnerable, making it one of the most urgent priorities to be addressed by financial institutions in the coming years.

“What we have learned is that the industry works best when you work together. Removing barriers to collaboration and working across all sectors of industry to bring in new and innovative technology to be more economically inclusive is eminently achievable. Traditional financial providers and fintechs working together will achieve the best results for customers in the years to come.”

Find a niche

Riggs EckelberryFounder and CEO of OriginClear, said, “A ‘fintech for good’ company has a greater purpose than one that is purely for profit. My company Water On Demand doesn’t just lend money or assist with transactions. As centralized water infrastructure fails, more and more companies and local communities have to take matters into their own hands, but they lack the capital to provide the treatment systems they need. That’s where the idea of ​​becoming the very first water fintech came in. We wanted to take care of the financing and contract management – not only for us, but for the water industry as a whole. This opens the door to incredible, word-changing technologies that wouldn’t otherwise be available to those who need them. It’s fintech for good.”

The power of business to solve social and environmental challenges

Anthony Villiers, CEO, First Wealth said: “It’s about using the power of business to solve social and environmental challenges and make the world a better place – which is easier said than done. It’s about doing good work that has a positive impact on society, the people you work with and the environment – and being profitable. We are incredibly proud to be a B Corp certified company which allows us to be part of a global community that shares our core values ​​and a clear sense of purpose that inspires, motivates and energizes us to continue to evolve and do better every day.

“The world of finance has historically been reserved for the few and I believe that the ‘fintechs for good’ out there are looking to break down those barriers and harness the power of financial technology to try to solve the global societal and environmental challenges at large like all of us is facing.

“At First Wealth, our ambition is to democratize access to financial planning by using 25 years of financial services experience with a new technology we are pioneering called Open Advice, which aims to make advice more affordable. Cooperation and knowledge sharing are at the core of this. We want to level the playing field by building technology that is accessible not only to us, but to other advisors around the world, so they are armed with the right tools to launch their own digital advisory services. Financial education should not be limited to the few who can afford it the most. That’s why we’ve recently launched the Thrive Money drive
by Open Advice – a financial education and social enterprise that serves to provide free financial tips and advice to a young, predominantly female, audience that has historically been overlooked and underrepresented. We would like to see other businesses in our profession follow suit and adopt this new technology for good.”

Works to support one of the UN’s 17 goals for sustainable development

Philip BuschmannCEO and co-founder of AAZZUR said: “A fintech for good is a fintech that is focused on far more than just supporting people and businesses with their financial needs. Really, they should somehow be working to support one of the UN’s 17 Sustainable Development Goals That means fintechs that focus on things like fighting climate change, reducing inequality, ending poverty or conserving oceans and forests.

“Fintechs are in a good position to help these matters because they often have an overview of all or part of the users’ financial footprint. They can then help them cut back or offset the expenses that go towards these 17 goals or redirect them towards something more positive.”

Founders must build the desire to do good into the culture of the DAO

Grace Kwanco-founder of Orca said: “As the founder of a web3 protocol, ‘fintech for good’ requires a different approach. In a traditional company, it is up to the company’s management to ensure that the impact of the organization is net positive. Even when management changes hands, the former leaders are often able to choose successors to carry out their legacy.

“But in the typical DAO, or decentralized autonomous organization—the structure that most web3 protocols use to rally the community around their cause—tokens, not C-suite titles, represent ownership of the organization. Any community member with enough tokens can set the direction to The DAO. This radically open form of governance is beautiful in theory, but can be terrifying to a founder who genuinely wants their protocol to do good. What’s to stop a malicious actor from buying a majority stake, then turning the protocol towards selfish ends ?

“Just the collective conscience of the members. Therefore, it is up to the founders to build the desire to do good into the culture of the DAO. This requires a community that shares similar values, so that the majority of members agree that doing good is a core part of the DAO. In this way, even when individual members are tempted to move in a less altruistic direction, the majority will override that temptation.”