The Latest CSR Trend In Fintech: How Technological Companies Help Build A More Sustainable Future

Winston Churchill famously said: “We live by what we get, but we live by what we give.” Communities, and the wider world, are thriving. To that end, some companies are effectively reducing their carbon footprint. For example, the Mercedes-Benz Group Ambition 2039 strategy includes a shift towards fully electric vehicles. Other companies work to support communities that often face challenges related to education, infrastructure, and environmental conditions.

How does this trend, or rather the new social norm, relate to fintech companies?

How can they help and what are they already doing to improve the world? This article aims to answer these questions for new and established fintech companies and their customers.

Fintech Companies and Corporate Social Responsibility

Fintech companies can advance social goals in many unique ways, from providing financial services to those without access to financial literacy. Here are some of the most pressing problems that FinTech companies are already addressing.

Donating just got easier.

Some companies, such as Fidelity Charitable, offer the ability to donate cash, securities, and other assets to public charities’ donor-referred funds. This provides donors with tax savings opportunities. Others, such as Binance Charity, are trying to revolutionize global giving with Web3 technology that makes donations more transparent, efficient, and most importantly, direct.

Ministries for the marginalized.

Financial exclusion in rural and underdeveloped areas has become a major issue for many fintech companies to focus their CSR activities on.
In some cases, the entire purpose of creating fintech services is to bridge this gap. For example, the bKash mobile banking service is specifically designed for the 70% of Bangladesh’s rural population with limited access to official banking services.

Improving financial literacy.

Unfortunately, only a handful of schools teach banking, investing and saving, even though it is the most important skill that students will need as they reach adulthood.

Fintech companies are becoming more aware of this issue and are starting to develop training courses for their customers and a much wider audience.

Other philanthropic initiatives involving large fintech companies include environmental projects such as HSBC’s efforts to conserve Guandu Nature Park in Taipei, Taiwan, emergency relief, and various initiatives under the United Nations Sustainable Development Goals.

What can a single fintech company do to promote social causes globally?

A fintech company is used as an example to explain the fintech CSR approach and its impact. In 2022, international forex broker OctaFX has focused its efforts on helping the community overcome global challenges. Here’s what they did.

• Brokers have helped 1,855 people and 46 small businesses in emergencies, mostly during natural disasters.
• OctaFX supported educational efforts of 4452 students and 50 schools and organisations by funding scholarships, extracurricular educational workshops, professional courses, renovating and building new schools and classes, purchasing computers and other necessary educational equipment.

In total, OctaFX helped more than 6000 people across multiple countries, including India, Indonesia, Malaysia, Mexico, Nigeria, and Pakistan. Some of the most impressive projects included the following:

• In India, the broker helped construct six computer classrooms for the Lala Bulaki Das Babu Ram Sahai Hindu Mahila Inter College in Tilhar.
• In Malaysia, OctaFX provided twelve-month allowances to six students pursuing different degrees in Malaysian universities.
• In Indonesia, the broker provided humanitarian aid for families affected by an earthquake in Cianjur district, which left 58,362 people hurt and displaced.
• In Pakistan, OctaFX has funded a Health, Education and Safety (HES) project to improve the health, education and safety of children in 12 rural communities in Muzaffagar, Punjab.
• In Nigeria, OctaFX provided ICT training to 50 unemployed people as part of their Youth Employability Skills (YES) charity project.
• In Mexico, the broker is currently sponsoring an empowerment program to help 110 Fundación Dr. Jose Maria Alvarez I.A.P

The current CSR trend in the fintech industry will expand as stakeholders and employees expect their values ​​to match those of the company. As more businesses actively engage in socially beneficial projects, we are moving closer to a future of a more sustainable, educational and healthy world.

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Originally published at https://businessdor.com on February 10, 2023.