The FinTech Impact Report 2024 reports that the UK fintech sector has improved financial inclusion and sustainable initiatives across the country.
The study from Innovate Finance and Vested Impact surveyed financial institutions and 3,560 fintechs to analyse their impact, using the UN’s Sustainable Development Goals (SDG) as a framework (Productivity, Place, People, Planet, and Peace). Across all the SDGs, UK fintechs have an overall positive impact.
The report found that 98% of fintechs improved productivity in the UK, 39% are increasing and promoting financial inclusion, and 26% are dedicated to protecting data privacy.
Kimberley Abbott, CEO of Vested Impact, stated: “Just a few weeks ago the United Nations and all member states reiterated that the UN Sustainable Development Goals represent the most comprehensive, far-reaching, and people-centred framework for achieving a just and prosperous world, and that a key to achieving these global goals will lay in mobilising the private sector as a force for good. But to effectively do this, we need to move beyond just looking at how companies behave, and look instead at the positive, negative, and indirect impacts a company’s activities, products and services have on the societies and environment around us; backed by data and science – and this report does that.”
There is more work to be done on fintech’s impact on the planet, with only 10% driving a positive impact on the environment, and 73% negatively impacting the planet. However, the negative impact has dropped 13% from last year. 14% of fintechs have been positively impacting their communities, with only 3% having a negative impact.
Jon Williams, Global Financial Services Sustainability Lead, Accenture, commented: “Multi-stakeholder collaboration across the financial industry is more critical than ever to drive meaningful and sustainable growth. UK FinTech has been empowering industry and society with research, development and innovation, and this report helps to quantify the sector’s transformative role in the UK year-over-year, while highlighting the need for greener practices. As a first of its kind in the fintech community, we hope that it accelerates the drive towards adopting sustainability principles in the design and the implementation of new technology systems.”
Additionally, Innovate Finance has unveiled Pay360: Across the UK, a project aimed to boost fintechs outside of London, planning a series of pitch events across the country. The programme has been backed by the Government and will take place over the next year.