As the financial technology industry expands exponentially, the opportunity for colossal profits continually increases. Often, businesses see a tension in the drive to boost income and the duty to be socially conscious. Striving for carbon neutrality and improving tech accessibility can be expensive pursuits, reducing the corporate appetite to bring about these positive changes.
This is a particularly important issue for the Fintech industry due to the seemingly boundless possibilities presented by innovative technology. For example, cryptocurrencies provide a cheaper and faster alternative to exorbitant Money Transfer Operator costs. This can help migrant workers who need to send remittances home to help struggling friends and family, which is largely taken away in exchange rate fees.
These payments are often sent to countries suffering from national emergencies, where families need the financial aid to survive in war-torn cities or areas ravaged by natural disasters. Moreover, the importance of remittances extends far beyond individual households, as several developing economies depend heavily on this funding from overseas. Jamaica, for instance, relies on remittances to constitute 24 per cent of its entire GDP.
Equally, over one-tenth of the yearly GDP of emerging nations is made up of remittances.
Fintech companies need to improve their diversity to connect with the members of diaspora communities that regularly send remittances. At the moment, too few members of these communities are aware of the opportunities offered by Fintech. It has been repeatedly highlighted that companies with greater diversity attract significantly better diaspora engagement. Unfortunately, only 3 per cent of people working in the fintech industry are Black, which provides an obstacle for Fintech companies trying to reach these communities.
Algbra, a purpose-driven Fintech, aims to improve diversity in the sector. However, 1.7 billion people across the globe remain ‘unbanked’, meaning they cannot access a bank account or a mobile money provider. Therefore, education is crucial to make Fintech more inclusive, and Algbra outlines its goal to enhance financial literacy amongst groups. This involves producing content that “celebrates and empowers diverse identities and cultures”.
This is just one wing of Algbra’s mission to make Fintech more socially conscious while working hard to provide users with tools to facilitate ethically-minded banking. Aside from offering a sustainable payment card, through the Algbra app, users can keep an eye on their carbon footprint and easily donate to a variety of charities. The company also pledges to work with industries that it deems to be unethical, such as gambling, tobacco and arms.
Chief Strategy Officer of Algbra, Nizam Uddin OBE emphasises the company’s ambition to drive social change, “We need to recognise the interconnected nature of climate change and diversity – we cannot tackle one without the other. Through Algbra and our collaborations, we are working hard to ensure our financial system is the most inclusive and environmentally-conscious network of its kind.” In doing so, they demonstrate that there is no need to view profitability and the responsibility to be socially conscious as opposed: Algbra strives to accomplish both in tandem.https://africa.businessinsider.com
