Green Fintech: an innovative yet important fusion of the 2 sectors

You’ve probably heard of green tech / climate tech, and fintech. These are both innovative fields of computer science, yet by applying green tech to fintech, we can make a much more ecologically friendly financial environment.

This LinkedIn article Fintech's Green Makeover: Sustainable Finance in the Digital Age is rather interesting and examines a number of ways to achieve and implement this.

A breakdown of some of the methods discussed are:

  • Applying big data processing methods - this is a commonly used method across a wide range of industries for various tasks, including ecological action

  • Digital banking which allows users to track their carbon footprint - helps users make more environmentally friendly spending decisions

  • Less of a reliance on paper systems and physical infrastructure - reduces the physical impact, hence cause less of an impact on the environment

  • Leveraging of blockchain technologies

There are a number of green fintech companies, all with important roles in reducing the impact of the industry on the environment. Here are a few:

  • Joro - incentivises users to spend in a sustainable manner

  • Stripe Climate - a project from Stripe, dedicated for businesses to finance carbon removal

  • TreeCard - issues wooden credit cards, donates 80% of profits to planting trees

  • MioTech - Leverages AI to deliver ESG data to companies to help them make more ecologically and socially conscious decisions

  • Triodos Bank - a bank committed to only financing sustainable projects, as well as transparency as they publish information on all businesses they collaborate and cooperate with

  • PensionBee - offering environmentally friendly retirement plan solutions, as they do not fund oil, gas, defense, fossil fuels and tobacco businesses

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This is a fascinating intersection of technology and sustainability!

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