Green and Sustainable Fintech II

Green and Sustainable Fintech II

Simon Thompson

Chartered Banker Institute CEO & ESG specialist

The finance sector has a rich history of embracing technology, from adding machines to AI and machine learning. The evolution, known as FinTech, involves digital, data-driven, internet-enabled, and AI technologies, impacting the delivery of financial services. Beyond traditional financial institutions, a broad ecosystem includes FinTech and BigTech firms like Apple, Alphabet, and Alibaba. Green and sustainable FinTech is seen as a catalyst for achieving Paris Agreement objectives and UN Sustainable Development Goals. Despite overall positivity, concerns about potential negative consequences of FinTech tools and techniques require attention.

The finance sector has a rich history of embracing technology, from adding machines to AI and machine learning. The evolution, known as FinTech, involves digital, data-driven, internet-enabled, and AI technologies, impacting the delivery of financial services. Beyond traditional financial institutions, a broad ecosystem includes FinTech and BigTech firms like Apple, Alphabet, and Alibaba. Green and sustainable FinTech is seen as a catalyst for achieving Paris Agreement objectives and UN Sustainable Development Goals. Despite overall positivity, concerns about potential negative consequences of FinTech tools and techniques require attention.

Speak to an expert

Speak to an expert today to access this and all of the content on our platform.

Green and Sustainable Fintech II

6 mins 13 secs

Overview

The finance sector has a rich history of embracing technology, from adding machines to AI and machine learning. The evolution, known as FinTech, involves digital, data-driven, internet-enabled, and AI technologies, impacting the delivery of financial services. Beyond traditional financial institutions, a broad ecosystem includes FinTech and BigTech firms like Apple, Alphabet, and Alibaba. Green and sustainable FinTech is seen as a catalyst for achieving Paris Agreement objectives and UN Sustainable Development Goals. Despite overall positivity, concerns about potential negative consequences of FinTech tools and techniques require attention.

Key learning objectives:

  • Explain the uses and benefits of FinTech tools in promoting G&S development

  • Identify some real-world examples of the impact of FinTech

Speak to an expert

Speak to an expert today to access this and all of the content on our platform.

Summary
What are Cryptocurrencies, and how can they be used to promote Green & Sustainable Finance?
Cryptocurrencies - These are digital assets, generally using blockchain as a means of exchange for financial transactions without a central issuing authority.
Proponents of cryptocurrencies suggest that decentralised blockchain and smart contract technologies, linked to the availability of environmental performance and sustainability data, can incentivise more sustainable consumer behaviour. For example, Solar Coin, which rewards producers of solar energy.
 What are the challenges and costs of adopting FinTech tools?
  • The risks of digital exclusion, especially in relation to vulnerable customers
  • Granularity - the individual pricing of risk enabled by AI and advanced data analysis, which may exclude individuals from products such as insurance
  • Unconscious bias in AI and machine learning
  • The loss of data control and privacy
  • In the case of cryptocurrencies, bitcoin relies on “mining”, which in turn requires huge computing power and energy consumption to function. This power is often generated via fossil fuels
What are the FinTech challenges in Green & Sustainable Finance specifically?
  • Increased automation can lead to significant increases in job insecurity. At the extreme, the replacement of large numbers of customer-facing and back-office jobs
  • Greenwashing: The benefits of a new product are overstated in order to secure investment or grow market share

Speak to an expert

Speak to an expert today to access this and all of the content on our platform.

Simon Thompson

Simon Thompson

Simon is the Chief Executive of the Chartered Banker Institute and co-author of Green Finance: Principles and Practice. He is also a former Vice President of the European Bank Training Network, and is currently Chair of the Global Banking Education Standards Committee. He specialises in professional ethics, and green and sustainable finance.

There are no available videos from "Simon Thompson"