For Australians, investing in sustainable fintech can really make a difference
Let’s start with a big statement: deciding where your money is managed, banked and invested is the single biggest thing an individual can do to create a positive impact for a sustainable future.
Switching out single-use plastic bags for reusable ones is great. Changing your diet is laudable. But there’s a significant impact you can make if you divert your funds to the right causes. And Australians are in a better position to do this than most.
According to Credit Suisse, Australia tops the list for median per capita wealth worldwide. It also ranks as the fourth wealthiest country when assessed by mean wealth.
Couple this with Australia’s low population when compared to wealthy countries like the US, and a case can be made that Australians can have a disproportionate impact when transferring money from one financial institution to another.
People are welcome, of course, to keep their money in low-interest savings accounts. This won’t necessarily help it grow. Depending on the financial institution, it might also be tied to lending activities for industries like mining and oil. What it almost certainly won’t be doing is supporting a future, low-carbon sustainable economy.
Moving money to sustainable investments, however, will. It will enable those businesses that are set to shape – and capitalise on – a sustainable future access the capital they need to achieve their goals.
We’re biased, of course, but sustainable fintech should be a recipient of a significant chunk of this transferred cash.
As we’ve noted in previous blogs, these startups are often more nimble than legacy financial institutions – and can move quicker in providing solutions. They’re deployment can inform consumers of the carbon footprint of their spending. It can help small businesses make more accurate climate-focused disclosures. Fintechs can also integrate with established banks, providing data and information that helps define better, cleaner and greener lending decisions.
If you need convincing of the value of fintech, we’d like to share …. Some quotes from Australian entrepreneur and investor, Dom Pym, Co-founder of Up, Ferocia and Pin.:
“Startupbootcamp has an international footprint, which can be critical for scale in fintech businesses operating in an increasingly global marketplace. This particular SBC fund is one of the first fintech funds we've come across with a dedicated sustainability lens, which is why our family office has increased our investment in SBC 10x for the Sustainable Fintech Fund.”
Australians have the ability to make a meaningful impact with their money decisions. Sustainable fintech should at least warrant a consideration.