The FinTech Impact Report 2024 highlights that the fintech industry in the UK is making strides in enhancing financial inclusion and sustainable practices nationwide.
The report, conducted by Innovate Finance and Vested Impact, gathered insights from financial institutions and 3,560 fintech companies, evaluating their contributions through the lens of the UN’s Sustainable Development Goals (SDGs), which encompass aspects such as Productivity, Place, People, Planet, and Peace. The findings reveal an overall positive impact of UK fintechs across all SDGs.
According to the report, an impressive 98% of fintech firms reported improvements in productivity within the UK. Furthermore, 39% are actively fostering financial inclusion, while 26% prioritize data privacy protection.
Kimberley Abbott, CEO of Vested Impact, emphasized the importance of private sector engagement in achieving the UN Sustainable Development Goals. She remarked, “Recently, the United Nations reminded member states that the UN Sustainable Development Goals provide a robust, people-centered framework for creating a just and prosperous world. To fulfill these global aspirations, we must shift our focus from merely assessing corporate behavior to understanding the comprehensive effects—both positive and negative—of a company’s operations on society and the environment. This report is a powerful step in that direction, grounded in data and science.”
The report indicates that there is still a considerable amount of work needed in the fintech sector regarding environmental impact, with only 10% of firms demonstrating positive contributions to the planet and 73% exhibiting detrimental effects. However, it’s worth noting that the percentage of negative impacts has decreased by 13% since last year. Additionally, 14% of fintechs have shown a positive influence on their communities, whereas only 3% reported adverse impacts.
Jon Williams, Global Financial Services Sustainability Lead at Accenture, stated, “The need for multi-stakeholder cooperation within the financial sector has never been more critical for fostering meaningful and sustainable growth. The UK FinTech industry has been at the forefront of empowering both industry and society through research, development, and innovation. This report quantifies the sector’s transformative influence in the UK year-over-year while underscoring the necessity for greener practices. This groundbreaking study within the fintech community aims to spur the adoption of sustainability principles in the design and implementation of new technological systems.”
Moreover, Innovate Finance has launched Pay360: Across the UK, an initiative designed to support fintech companies outside of London, featuring a series of pitch events throughout the country. This program, which is supported by the Government, will unfold over the coming year.