The FinTech Impact Report 2024 reveals significant advancements in the UK fintech sector, particularly in enhancing financial inclusion and promoting sustainability across the nation.
According to a comprehensive analysis conducted by Innovate Finance and Vested Impact, which involved surveying financial institutions and 3,560 fintech companies, the sector’s contributions have been assessed through the lens of the United Nations’ Sustainable Development Goals (SDGs), which include criteria such as Productivity, Place, People, Planet, and Peace. The findings indicate that UK fintech firms have made a predominantly positive impact across all these dimensions.
The report highlights that 98% of the surveyed fintechs have succeeded in boosting productivity within the UK, with 39% actively advancing financial inclusion and 26% committed to safeguarding data privacy.
Kimberley Abbott, CEO of Vested Impact, remarked, “Recently, the United Nations reaffirmed that its Sustainable Development Goals form the most extensive and people-centered framework for fostering a fair and prosperous society. Achieving these global objectives necessitates engaging the private sector as a catalyst for positive change. To truly understand a company’s influence, we must assess not only its behaviors but also the broader impacts—both beneficial and detrimental—of its operations and products on society and the environment. This report provides critical insights backed by data and analysis.”
While progress has been made, the report indicates that further efforts are required regarding environmental impact, as only 10% of fintechs are contributing positively in this area, with 73% having a detrimental effect on the planet. Notably, the rate of negative environmental impact has decreased by 13% compared to the previous year. In terms of community impact, 14% of fintechs report positive contributions, while a mere 3% indicate negative effects.
Jon Williams, Accenture’s Global Financial Services Sustainability Lead, stated, “Collaboration among multiple stakeholders in the financial industry is essential for driving sustainable growth. UK fintechs have been instrumental in empowering both industry and society through research, development, and innovation. This report quantifies the transformative influence of the sector in the UK over time while underscoring the urgent need for greener practices. As a pioneering effort within the fintech community, we hope it accelerates the adoption of sustainability principles in the design and implementation of new technological systems.”
In addition, Innovate Finance has launched the Pay360: Across the UK initiative, aimed at supporting fintechs outside of London through a series of pitch events scheduled throughout the year, backed by government support.