How Can Fintech Companies Get Involved in the Environment?

Financial services providers have the funds to finance climate change, and new entrepreneurs would like to join this effort. They need ideas on what fintechs can do to make money yet be sustainable. The research purpose of this study is to explore what fintechs are doing in this field of climate change and what theoretical and policy implications can be gained. This exploratory study uses a multiple case study method, using secondary sources of information. The sample includes five big fintechs and twelve green fintechs. The study finds that large fintech firms are diverse in the extent of their reporting and the issues that they are tackling, but they all report on their Scope 1 and Scope 2 impacts, and most report on Scope 3. Smaller dedicated green fintechs in the sample are grouped into those that offer to crowdfund green projects, those that track the impact of green projects or other firms or individuals, payment firms that invest directly into green projects, and those that provide a platform for peer-to-peer trading of renewable energy. The exploration is relevant to theories and concepts, including product differentiation and enhancement, disruptive innovation, collaborative ecosystems, and environmental and social impacts. Using lateral thinking, microfinance, and work-sharing research can stimulate reflection on developing more inclusive and advanced green fintech offerings. A few directions for future research in this field have been provided for those interested in impact measurement, strategic management, business models, risk management, or innovation theories.

Automated summary

Financial services providers have the funds to finance climate change and new entrepreneurs are interested in joining this effort. This study explores what fintech companies are doing in the field of climate change and its theoretical and policy implications. The research uses a multiple case study method and secondary sources of information. The findings show that large fintech firms have diverse reporting extents and tackle different issues, but all report on their environmental impacts. Smaller green fintechs in the study offer crowdfunding for green projects, track the impact of green projects, invest in green projects, or provide platforms for peer-to-peer trading of renewable energy.