The world depends on global finance working towards a fairer financial system for people, environment and culture with a focus on sustainability, climate change and social justice. This July in Fintech Times we put the spotlights on ethical finance/ethical banking, including environmentally and socially conscious practices.
Ninety-three percent of EU citizens see climate change as a serious problem, and 78 percent see it as a very serious problem. European Commission. The desire for change is now reflected in the way people view their financial services, with one survey showing that around 60 percent of consumers are looking for greener banking.
AAZZUR, a data-driven embedded financial experience platform, says sustainability is something banking can no longer ignore. In its white paper More than just carbon offsets, 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 in reducing carbon emissions than stopping flying, becoming a vegetarian and switching to a renewable energy supplier combined.
White paper insight
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 about sustainable banking, one thing comes to mind: offsetting carbon dioxide emissions. This is where banks offset their and their customers’ carbon footprint by financing equivalent carbon dioxide savings elsewhere. It’s something that many big banks are putting a lot of energy into and it’s no doubt a worthwhile endeavor. But for modern banks and their customers, the options are far greater and far more innovative than this”.
It continues: “Imagine immediate investments in NGOs, a built-in blacklist of non-eco-friendly retailers, sustainability ratings, awards for eco-friendly behavior and more. Embedded financing allows banks to offer their customers these services at the point of need, giving them the opportunity to make an immediate, positive impact every time they make a purchase.”
Philip Buschman, CEO of AAZZUR, adds: “Embedded finance is a game-changer, especially when it comes to encouraging environmentally conscious behaviour. Many people want to do their part for the planet, but without effective steps, it is difficult for them to make a meaningful change. This is where apps like AAZZUR come into their own and can really drive behavior change.
AAZZUR creates an ‘ecosystem of sustainable fintech products’ to help its clients’ clients mitigate their impact. Banks or businesses can integrate these services into their core banking platform.
“We can even create an entire challenger bank, investment platform or fintech company from scratch that is entirely focused on sustainability,” the company says. “With our sustainability suite (with the help of our fintech partners), all payments and user behavior are analyzed with proprietary real-time algorithms to help consumers understand their environmental impact and drive change through personalized recommendations for reduction and compensation.”
“They can track their CO2 emissions, calculate their overall sustainability score and compare their results with them.”
others. They can also easily offset their CO2 emissions, invest in green ventures and get proactive suggestions on more sustainable electricity and internet suppliers.”