How FinTechs Can Contribute to the World’s Sustainability Goals: Report by Elevandi

A new report – SFF 2022 Insights: Enlisting FinTech To Help Create a Sustainable Future – jointly produced by McKinsey & Company, Elevandi and the Monetary Authority of Singapore (MAS)— showcases how FinTechs can contribute towards a greener future.

Key insights from the report include:

• The move to a net zero global economy by 2050 will require the greatest reallocation of capital since World War II, coupled with a massive influx of financial innovation.
• Data remains crucial in supporting the innovation of FinTechs: Data collection and analysis are crucial factors in whether FinTech innovation can successfully support sustainability goals. Data is necessary to make informed decisions, evaluate market participants, and assess the success – or failures – of initiatives. Yet good data remains a scarce commodity.
• FinTechs are already playing a role in driving the sustainability agenda. “FinTechs for Good”, i.e. FinTechs that embed an ESG agenda into their core product portfolio, operations and mission, attracted $2.1bn in funding in 2021, and this trend is expected to continue. As sustainability efforts proliferate, a key challenge for all companies would be to demonstrate real impact, and self-protect against greenwashing.
• Encouraged at least in part by increased concern for climate change, regulators around the world are taking a keen interest in sustainability claims by corporations, particularly their reporting activities.

The report draws from the environment, social, and governance (ESG) track of the Singapore FinTech Festival 2022 (SFF 2022) that took place between 2-4 November 2022, and includes insights from respectable leaders present at SFF 2022. These include Anthony Tan, Co-Founder & Group CEO at Grab, Eric Lim, Chief Sustainability Officer for United Overseas Bank, Helge Muenkel, Chief Sustainability Officer for DBS Bank, Mark FitzPatrick, CEO at Prudential, Nikhil Rathi, Chief Executive of the UK Financial Conduct Authority, Ravi Menon, Managing Director of MAS, and Sonam Wangchuk, Founder of Himalayan Institute of Alternatives.

One of the most pressing issues highlighted was sustainability, particularly the critical need to prioritise efforts in this area, both by the FinTech sector and the rest of the world.

Commenting on the launch of the report, Pat Patel, Executive Director of Elevandi said, “Net zero is a massive mountain to climb, and reaching the critical sustainability goal will test society’s capability and commitment. The McKinsey Global Institute has provided a steep estimate – that $275 trillion in capital spending between 2026 and 2050 would be needed.

At Elevandi, we firmly believe that an active dialogue and collaborative projects between the public and private sectors will make a difference. In the first half of 2023, we will continue to bring policymakers, and regulators together with corporates, startups and investors to progress frameworks and concrete initiatives. We’ll be convening key global leaders in Rwanda to focus on inclusive and sustainable FinTech projects and Switzerland to focus on technology and data frameworks required to move the sustainability agenda forward.”

Joydeep Sengupta, Senior Partner, McKinsey & Company said, “Climate change is a major global challenge, and requires sizable investments to meet net zero commitments. The FinTech industry has the ability, and the opportunity, to rise to the occasion and contribute towards ESG, not only by addressing its gaps and problems but also by helping to lead the way. Drawing on research done by McKinsey and the proceedings of the ESG track of SFF 2022, this report provides insights into how FinTech has the potential to help us reach a sustainable future.”

The “SFF 2022 Insights: Enlisting FinTech To Help Create a Sustainable Future” report is one of the seven reports Elevandi will be releasing with consultant partners, which include topics such as Web3 and digital assets, banking for business, balancing innovation and regulation, the future of FinTech in growth markets, and how FinTechs can become more resilient to volatile market conditions.

Read the full reports now on the Elevandi website. Up to 13 more reports will be released in Q1 2023 with insights from the roundtable discussions at the Elevandi Insights Forum at SFF 2022.

About Elevandi

Elevandi is set up by the Monetary Authority of Singapore to foster an open dialogue between the public and private sectors to advance FinTech in the digital economy. Elevandi works closely with governments, founders, investors, and corporate leaders to drive collaboration, education, and new sources of value at industry and national levels. Elevandi’s initiatives have convened over 350,000 people to drive the growth of FinTech through events, closed-door roundtables, investor programmes, educational initiatives, and research. Elevandi’s flagship product is the Singapore FinTech Festival alongside fast-rising platforms, including the World FinTech Festival, Point Zero Forum, Elevandi Insights Forum, The Capital Meets Policy Dialogue, and the Inclusive FinTech Forum.

About the Singapore FinTech Festival

The Singapore FinTech Festival (SFF) is organised by the Monetary Authority of Singapore (MAS) and Elevandi, in partnership with Constellar and in collaboration with The Association of Banks in Singapore (ABS). Since its inception in 2016, SFF has become the premier platform for the global FinTech community to engage, connect, and collaborate on issues relating to the confluence of financial services, public policy, and technology. Last year’s edition brought together more than 62,000 participants from over 115 countries. The next Singapore FinTech Festival will be held from 14-17 November 2023.

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