The world depends on global finance that works towards a fairer financial system for people, environment and culture, with a focus on sustainability, climate change and social justice. This month of July Fintech time we focus on ethical finance/ethical banking, including environmentally and socially responsible practices.
According to European Commission. A desire for change is now reflected in the way people view their financial services, with a survey suggesting around 60% of consumers are looking for greener banking services.
AAZZUR, a data-driven, integrated financial experience platform, says sustainability is something the bank can no longer ignore. In his white paper More than just carbon offsetting, this suggests that the most positive impact a consumer can have on the environment is through their finances.
Switching to a sustainability-focused pension, for example, is more than 21 times more effective at reducing carbon emissions than quitting flying, going vegetarian and switching to a renewable energy supplier combined.
Overview of the white paper
According to the white paper, modern consumers want banking products that are socially responsible, sustainable, inclusive and organized in their daily lives.
He explains that “when people think of sustainable banking, one thing comes to mind: carbon offsetting. This is where banks offset their carbon footprint and that of their customers by financing an equivalent carbon dioxide saving elsewhere. This is something that many big banks put a lot of energy into and it is undoubtedly a laudable task. But for modern banks and their customers, the options are much broader and much more innovative than that.”
He continues: “Think instant investments in NGOs, built-in blacklisting of non-ecological traders, sustainability scores, rewards for environmentally friendly behavior and much more. Integrated finance enables banks to offer these services to their customers when they need them, giving them the ability to have an instant positive impact every time they make a purchase.
Philippe Buschman, CEO of AAZZUR, adds: “Integrated finance is a game-changer, especially when it comes to fostering eco-responsible behaviors. Many people want to do their part for the planet, but without concrete action they struggle to implement meaningful change. This is where apps like AAZZUR come into their own and can really lead to behavior change.
AAZZUR creates a “sustainable fintech product ecosystem” to help its customers’ customers mitigate their impact. Banks or businesses can integrate these services into their main banking platform.
“We can even build a challenger bank, an investment platform or a fintech company entirely focused on sustainability from scratch,” explains the company. “With our Sustainability Pack (with the help of our fintech partners), all payments and user behavior are analyzed by patent algorithms in real time to help consumers understand their environmental impact and drive change through to personalized reduction and compensation recommendations.”
“They can track their CO2 emissions, calculate an overall sustainability score and compare their scores with
others. They can also easily offset their CO2 emissions, invest in green businesses, and get proactive suggestions on more sustainable electricity and internet providers.