The fintech industry has always been a pillar in human growth by enabling companies and communities better utilize and sustain their financial operations. Efficient use of these investments improves the quality of life and businesses’ quality order. However, in the past few years, financial institutions ignored the ecosystem, which resulted in a degradation of the environment leading to climate change, pollution, and natural resource depletion.
Fintech plays a major role in maintaining the sustainability of resources, yet very little effort was incorporated to solve environmental issues. Until recently, few fintech companies started acknowledging the necessity of green investment which led to an advancement in sustainable growth. Partially because it reflects on the brand’s image and for the profit generated from adapting the business model to a more sustainable, green one. According to a recent global study by the MIT Sloan Management Review (MIT SMR) and the Boston Consulting Group (BCG), the number of companies reporting a profit following their sustainability efforts rose from 23% to 37% in one year only.
Accordingly, many FinTech’s have been adapting their business model in a way that benefits the environment all while increasing their profit, efficiency, and customer loyalty. An example of such companies would be GlobalCloudPayments, a Fintech company that is working towards accelerating the growth of the retail sector. By making Smart ATMs backed by Cloud and NextGen technologies to ensure prosperity-driven sustainable growth and the inclusiveness of financial services. Most importantly by considering the entire ecosystem and working towards achieving a greener environment with a small humanity footprint supported by fintech. How can a fintech company like GlobalCloudPayments contribute to the environmental cause?
By offering their customers a mobile App (IZIIPAY) integration that enables them to set up cash withdrawals using their smartphones then scan a QR code at the ATM or enter a one-time password to complete the transaction. This e-wallet integration feature provided by Smart ATMs is a great step towards eradicating plastic credit or debit cards and moving towards card-less transactions. According to a study banks globally issue 6 billion plastic credit cards per year, which end up in landfills due to the material it is made of. Furthermore, instead of developing an entirely new mobile app that requires new energy and can significantly impact the environment, why not use a white-label mobile app. This environmentally friendly solution enables businesses to have their own app with minimum impact and the lowest costs.
The United States alone consumes 3.3 million trees and thirty-four billion liters of water while emitting 2 million kilos of CO2 in the process of paper receipt production. That is why many retailers, banks, and ATM deployers are becoming more environmentally conscientious and looking to use printer-less ATM machines that offer E-receipts options.
Despite the use of digital currencies, cash transactions are still dominant in the retail sector especially, which means large volumes of cash needs to be transported on daily basis. However, transporting cash poses huge security and environmental threat.
Along with cash management software, cash recycling can help leading global, regional, or local retail chains, process and collect large volumes daily. Smart recycling ATM reduces the amount of Cash in Transit visits by storing and dispensing securely cash needed for daily usage while reporting a detailed history of transactions to their banks. By implementing cash recyclers, you can benefit from immediate operational efficiency, improve your consumer service while keeping cash management costs at a minimum. Fewer CIT visits also mean fewer kilometer visits of a heavily armored truck which means less CO2 emissions. Customers get their cash from the closest Supermarket without the need to use any type of service that has a physical environmental impact.
2020 has witnessed an increase in the use of ATMs which made it necessary to reach certain marginalized communities for multiple reasons, some of which are: To have a presence in untapped rural markets and provide financial services to marginalized communities. Using environmentally-friendly Smart ATMs will also provide customers with a reliable option in case of any electricity shortage while lowering their operational costs and carbon footprint.
Because of the threat global warming poses on our environment, GlobalCloudPayments along few other FinTech’s are shifting towards green finance and the reduction of negative externalities, all in the hope of introducing financial products targeted to environmental care. This tendency to go green has contributed to the global surge of green bonds in Europe, which is expected to grow from around the current level of EUR 662/672 billion to EUR 1 trillion by the end of 2021 and EUR 2 trillion by the end of 2023, according to (NN IP).
According to Investopedia green bonds are a type of fundraising dedicated to environmental and climate projects. It is usually linked to a company’s assets and aims at reducing the effect of climate change and cultivating environmentally friendly innovations. Green bonds are accompanied by a tax exemption and tax credits to encourage companies to work on projects that benefit the environment.