It is no surprise that since FinTech became such a prominent industry that it’s had quite a big impact on society. This week’s blog looks into different societal issues that have been affected by digital banking and whether or not the FinTech industry is providing solutions for them.
Sustainable banking is a main topic within the FinTech sector, and this is mainly because the aims of digital banking favour the likes of green finance. For instance, the rise of AI (Artificial Intelligence) systems as well as incorporating environmental social governance (ESG). Through these innovative ways, FinTech service can aim to enable easier access to stock markets, have better risk management systems which all would contribute to a more sustainable way of banking.
2.Offering new opportunities
The growing rate of the industry mean that it is opening the door for even more FinTech start-ups and companies. As well as this, through most fintech banking apps having digital storefronts not only enables small businesses to thrive but also helps people build a wider e-commerce network which therefore enables them to scale at a faster pace.
3.Tackling financial poverty
Financial poverty is a huge social area that is affected by many industries. However, when looking into it in conjunction with FinTech it is safe to say that one of the industry’s main aims is to promote financial inclusion. This primarily means that people from different communities would be able to have decent access to financial services at their convenience which breaks down the barriers of inaccessibility for those in rural areas for example.
The issue of mental health is one of big importance in the banking world as many experience worries when it comes to managing their finances or when facing debt. So far, the FinTech industry has tackled this issue through providing platforms on their site or apps in which one would be able to seek advice on specific issues facing their own customer needs whether this is through advice articles or videos. In this respect, platforms like these prove to be essential as they provide solace for those facing dilemmas or seeking any financial advice.
In conclusion, from exploring the various societal issues that are facing the world today and measuring it against what the FinTech industry are doing, it shows that they are very much intertwined. It is clear that all issues seem to be of equal importance in the FinTech sector and this can only mean a promising future moving forward.