DigitalCFO Newsroom | 28 October 2022
Study finds government support and talent development are crucial in driving the growth of green fintech.
GoImpact, an ESG and Sustainability education firm, together with The Chinese University of Hong Kong’s Business School (“CUHK Business School”) released the findings from their working paper, Exploring the Green Fintech Ecosystem in Asia: Insights from Five Economies in APEC. This study finds that government support plays a vital and essential role in facilitating green fintech development, while talent shortage is a common concern in the five economies in the region.
Derived from three elements — environment, finance, and technology — the industry report defines green fintech as financial activities that utilize green technologies that bring better environmental outcomes.
Industry experts from five APEC economies, namely Hong Kong SAR, China (“Hong Kong”), Indonesia, the Republic of Korea (“Korea”), Singapore and Thailand, have urged policymakers to establish a conducive environment for green fintech to flourish. According to them, governments can help through offering incentive schemes for startups to develop in this area and spearhead the change by setting sustainable regulatory frameworks and mandating disclosures, reporting, and thresholds.
The study also suggests that financial institutions should embrace the sustainable agenda to achieve the triple bottom line: profit, people, and the planet. Given the current competitive banking environment and the global shortage of green talent, financial institutions should utilise their unique positions in the business ecosystem to develop more in-house sustainability talent to promote the sustainability agenda, the report further explains.
The study examined policies, markets, and opportunities regarding fintech’s role in driving green finance in the five selected APEC economies through desk research, interviews, as well as focus group discussions involving green fintech startups, government and quasi-government organisations, green fintech-related associations, and financial institutions.