CAN FINTECH HELP TACKLE THE COST OF LIVING CRISIS, CLIMATE CRISIS, WORLD PEACE?
The financial sector is always pivotal in a crisis but rarely do we have so much hitting us at once. Storms of the past may pale against a potential hurricane of competing priorities coming towards us.
We are not talking long term – when, at our leisure, we can analyse, test and plan our strategy. We were looking forward to slowly recovering from the impact of Brexit and the pandemic, instead we have a crisis or three to drive us on. This industry has many ways to help with innovation and collaboration.
Cost of Living Crisis
Government interventions go some way to helping the most vulnerable who are struggling in the face of soaring energy and food prices. Sadly, when income is not enough, those with thin or weak credit files inevitably pay eye-watering interest rates on loans that they can ill-afford. There is much more we can do to stop people ending up in spiralling high-cost debt.
Some good work is already being done here by organisations like Fair4All Finance. More specialist lenders, Community Banks, Credit Unions and financial institutions that are resolutely focused on breaking the cycle of never-ending debt for those most vulnerable, will be needed now more than ever.
If there are any lenders in this space that want to help and they have the funds but not the technology, ask firms like Madiston, whose technology is so hyper-automated that even the slimmest margins can be sustainable. Collaboration is key here and we should all work together to find a long-term solution quickly before people sink into unaffordable debt.
Like the pandemic was a stimulant for investment in digital technology, so the energy crisis has placed a global spotlight on the rapid take-up of alternative, sustainable energy sources. Governments everywhere are looking at how and where they source power to keep the lights on. National urgency for energy autonomy should fuse with global environmental priorities. You can already see the increasing emphasis for investors in environmental issues, supporting major climate technology advances across the world.
Many technological advances, like solar power, heat pumps, electric cars etc, all rely on take-up by the general public at a time when personal finances are so limited. Government Grants cover some of these costs but, in order to drive costs down, volume sales are needed to help sustain the investment. Again, this is where Fintech companies can get creative to support the take up of climate-friendly technology.
Out of the box thinking from Cambridge Photon Technology, a spin-off company from Cambridge University, led to the preproduction of innovative new sheets that can increase the efficiency of existing solar panels.
Innovation from French firm, Transition One, led to the development of vehicle electric conversion kits to be fitted to your existing car. Maybe soon, they could be sending the conversion kit to your local garage to do the conversion. Perhaps another step towards cleaner driving. There are plenty of technological advancements that might well play their role in saving the planet, but it's the combination of new technology with new attitudes that will make the biggest impact.
Fintech can help enable affordable take-up of these eco-friendly innovations. We have ideas that we are happy to share with collaborative partners to enable responsible drivers and home-owners to make the sustainable choices that are right for them and the planet. Madiston is not alone in having innovative solutions, we all need to pull together to make it happen.World Peace
If only we had a magic wand for this one. Power and greed in all its forms mean that millions of people around the world suffer needlessly. Peaceful collaboration should work to end hostile intentions and ensure food is available to everyone, wherever they live on this planet. If we had a magic wand, this would be so. In practical terms though, the contribution that the financial services industry can make is to help keep the economy moving forward, despite these crises.
Discussion and collaboration is vital now and we reach out to other financial services and fintech firms to see how we can work together to move us all forward, on all fronts.
If you are an aspiring Fintech in these areas, Madiston has hyper-automated software for online lending, borrowing and payments, AND an FCA approved entity in which a business could be inserted and run with compliant technology.
Let's see how collaboration and synergy could deliver real collective benefits, locally and globally.
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