FinTech Going Green: 7 Companies Built on Promoting Environmental Sustainability

Social movements are powerful and heavily influential in this day and age of innovation. Social justice communities are arguably the loudest they’ve ever been with the help of social media platforms and news-sharing outlets. 

People can express their thoughts and ideas to audiences on these platforms, allowing interactivity. It could be argued that as a result of this acceptance, justice and initiative are now the public's language. With activism comes brands aiming to connect with consumers by taking a position. 

Among the major initiatives of today is eco-friendliness, which in 2022 contributes to the majority of consumers' desire to support a brand or product. There is a genuine desire to save the planet that brands can materialize by promoting and creating opportunities to fund sustainability. 

Recently in Canada, for example, the government has said they’re going to require every vehicle sold in 2035 to be entirely electric. Another example is big players like Google, Apple, and Amazon, who promised to take drastic measures to minimize their carbon footprint. One last example is The Climate Clock in New York City at the Metronome which counts down how much time there is until damage to the climate becomes irreversible.

Environmental sustainability is a factor that is increasingly prevailing as a pillar of businesses' survival during this time. More than 65% of executives deem it “necessary” for market survival in 2022. It’s non-negotiable then for financial institutions to contribute to this movement and “go green”. 

We could say that this is one of the greatest approaches to public relations an organization could take at the moment, but that would be rather redundant in contrast to what some of these companies have done and are doing. With that being said, here are some initiatives from businesses in the FinTech realm that have based their approach on some form of environmental sustainability:

1. TreeCard

This unique initiative focuses on reforesting areas worldwide while simultaneously eliminating plastic. A TreeCard is a credit card made of wood. The business model works through the company taking a fee on a per-usage basis from the merchant. 

This accumulation of fees then goes to planting trees on behalf of the customers. It should be mentioned that typically, this fee would be taken as profit, but TreeCard puts 80% toward their replanting initiative. 

2. Stripe Climate

Stripe is a major entity in the financial industry. They launched Stripe Climate as a way for businesses to donate 1% of their profits to fund the development of carbon removal technologies. 

From a business perspective, this is brilliant, especially since participating organizations will receive a badge from Stripe for their clients to see (which we could even dare to call free marketing).

3. Joro

This app hit the mark for its target audience beautifully through its slogan, which states “build a solution as big as the problem”. Joro partnered with FinTech giant Plaid to reduce the impact of carbon emissions. 

They make this possible by tracking users' purchases and displaying graphs in the app for users to see where their spending is going and how it impacts their carbon footprint. Someone using Joro will effectively be able to steer their spending habits in an environmentally friendly direction.

4. Raise Green

Many people love to support their local communities as opposed to something global. Raise Green allows users to find businesses nearby that have green initiatives (this technology is backed by IBM). 

Once someone has found a cause that interests them, they can invest and own a piece of that project. Users enjoy the transparency of this platform; once they’ve invested, they can watch their investment generate clean energy (that is measured in kWh).

5. Trine

The first thing that sticks out about Trine’s branding is the one-liner that goes “For people, for the planet, for profit”. This ethos is perfect for their brand since the goal is to be transparent while spreading awareness of their product in addition to environmental issues that users can support. 

The business model is constructed as a peer-to-peer loan platform that aims at supporting solar energy initiatives. Users can get involved by investing in these projects starting at a minimum of $25. In 2022, the platform has seen investments from more than 10,000 people. 

6. Treelion

Here is an organization that beautifully exemplifies what it means to be a sustainable FinTech company. Their product is providing a decentralized network for businesses to track and manage their digital eco-friendly products through blockchain. 

Their product effectively becomes an enabler for the creation, development, and flow of capital, among green digital economies and ecosystems.

7. Aspiration

This platform is a doubleheader. One that solves the needs of the planet through reforestation, and one that supports people’s future by providing an IRA (Individual Retirement Account). 

Both features are made possible by using an aspiration card which rounds up every dollar spent and uses spare change to plant trees. The IRA is created by users investing in sustainable businesses, allowing you to save on taxes by opting to defer them until you retire. 

The Benefit of Green Finance

Digital banking is already more beneficial to the environment in comparison to traditional banking, which one can glean from the sheer elimination of driving to the bank, paper statements, and delivery of statements. If we’re going to state that FinTech is paving the way to an environmentally sustainable future, we need to step back and realize why that is.

First of all, finance is the only way people can function in the world day-to-day, nonetheless building a future. So, this is something everyone uses. Imagine if something every person uses was directly benefiting the sustainability of the world. This is a necessary movement. This is not to say that every business should base their model on it, but to have options aligned with this movement would be the ideal situation.

What’s Next?

In this section, we saw some green FinTechs that worked to create sustainability using B2B and B2C approaches. At this point, these businesses have strides to make before they become profitable. It is a new approach for FinTechs that shows promise for the future in terms of business and environmental sustainability. What matters most for organizations looking to get started in this sector is having the right software to support their efforts.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Why Should Businesses Use SaaS Applications?

Online services have opened a new window of opportunity for businesses globally. Beyond simply marketing, conducting business online is the only way to exponentially grow a consumer base, drive revenue, and reach new markets. Among those taking advantage of the growing virtual marketplace are, of course, software developers who are introducing technology to enhance it. One of the ways they’ve started is through cloud technologies and SaaS applications. Companies traditionally deliver their solutions as licensed software but are now moving towards SaaS applications with the help of cloud technology. 

SaaS (or Software as a Service) is a licensing and delivery model meant for users to access applications via the cloud. You can think of it as a mutually beneficial agreement for solutions providers, services using it, and users of that service. On the one hand, providers no longer sell lifetime licenses on their software, making it less intimidating to their clients. On the other hand, users don’t have to download any software and can instead use it via browser and APIs. 

This software is hosted centrally and licensed as a subscription which is why it is also referred to as “on-demand software”. Netflix, for example, is a SaaS company since they sell software that enables users to watch licensed videos on demand. Users don’t have to download the videos and can access them from any device with an internet connection. This allows them to monetize the delivery of their software and keep track of users' data in a data center.

The usage rates for SaaS are proliferating, between 2017 and 2020 alone companies have used 5 times as many SaaS applications. Businesses from all industries, whether marketing, retail, healthcare, or finance, can expand their business with SaaS applications. 

Now, SaaS has variations to it that suit the needs of different business models. The variations are categorized into business-to-business (B2B) and business-to-consumer (B2C) style applications. Here are some of the applications on both ends:

B2B SaaS Applications

• eCommerce applications: This kind of software lets eCommerce businesses manage workflows and services such as controlling inventory, processing payments, and managing supply chains.

• Human resources management software (HRM): This allows companies to manage their staff by collecting data about current and potential employees. Among many other features, managing benefits and estimating the capability of employees are common draws.

• Customer relationship management software (CRM): This is a popular choice for SaaS as it is great for overseeing a businesses' customer base. Particularly, monitoring marketing campaigns, tending to clients fast, and even tracking a product's delivery status are among many features of CRM software.

• Enterprise resource planning systems (ERPs): This enterprise software allows companies to better manage complex processes. Depending on the company's needs, manageable modules such as CRM and HRM, supply chain, inventory, and accounting are included among many others.

B2C SaaS Applications

• E-Learning applications: In 2019 in the United States, 57% of students were using e-learning tools. E-Learning use has increased significantly in recent years, especially with the circumstances instilled by the pandemic. It has become a highly efficient tool for users to access the material anytime from almost anywhere. Institutions have recognized its value and even mandated its use in some cases, making the demand for quality applications a necessity.

• Streaming services: Back to the example of Netflix, there are tons of music and video streaming services all over the world. People want to be able to listen to music or watch content from anywhere. This technology isn’t reserved for major entities but for providers of all sizes to compete.

• Editing services: Google Drive, Canva, MailChimp, Shopify— the list continues. SaaS applications allow instant access to the service where users can modify the material, whether for business or personal matters.

With this understanding of what SaaS applications can do and who they’re meant for, let’s turn over to the specific benefits this technology provides:

User Advantages

The traditional concept of licensed software is losing its fight against SaaS. Anyone who’s watched the uprise of SaaS will tell you that its popularity is due to the mutual benefits between provider and user. Here are some specific contributing factors to its dominance:

Scalability: While the extent will vary depending on the subscription, SaaS solutions can scale up or down to the needs of the user. This means the software will only utilize the resources it needs. In effect, this will save money since users aren’t paying for services they aren’t using.

Automatic updates: Recall that users don’t have to install the software to access the application. This allows providers to run updates automatically in the cloud which will eliminate downtimes and ensure constant access to the user.

Accessibility: SaaS is cloud-based which makes the applications accessible anytime and anywhere, so long as there is a connection to the internet.

Business Advantages

Consistent and stable revenue: For businesses and users, subscriptions are proving to be a far more feasible option since both are charged in increments each month compared to a large one-and-done purchase.

Access to a bigger market: SaaS doesn’t tend to a specific niche; any company or individual around the world can access it. 

Expanding clientele: because SaaS applications aren’t confined to any one language or location, they bring in users from all over. Aside from the dissemination aspect, its cost efficiency is also desirable.

The Takeaway

Cloud-based software is changing the game for businesses and consumers in that it delivers an experience that keeps people coming back. For users, this technology is flexible, and mobile, and comes at a low price. For the business, consistent revenue and endless possibilities for expansion make its implementation inevitable to anyone looking to make it in the long term. Any company that considers making their applications SaaS will need a highly experienced software development team. Do what’s best for the long-term sustainability of your business.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Keys to Digital Marketing as a FinTech Firm

Without marketing, you have no business, no community, and no longevity. FinTech companies face challenges that are unlike most other industries, particularly since the product is relatively new and different. FinTech brands must be as creative in their marketing efforts as they are in creating innovative services. This means financial startups' main areas of concern should be based on educating and building rapport with consumers.

With FinTech companies, educating and connecting with the audience is done through digital marketing that is powerful and digestible. Companies don’t want to intimidate those unfamiliar with their product, so their branding needs to be easy and not “too techy”. For startups in the financial sector, digital marketing can look like a mountain to climb. However, the trip doesn’t have to be so complex with the right strategic solutions. 

After reading this section, you will understand some of the top methods for financial companies when approaching a digital marketing campaign. More importantly, you will understand why these methods are effective in a highly competitive market:

Branding

The main priority for financial companies, especially new ones, is getting the audience in tune with complex concepts. This can be done in several ways, but the common starting point is by understandably framing the product. Beyond that, companies will want to create hype and ultimately FOMO (Fear Of Missing Out) around the product. For example, making investment decisions is based on complex variables. Over 60% of adults are intimidated by investing, a trend that is only becoming more prevalent with each generation. FinTech mobile apps aim to assist those unfamiliar through analytics and AI-generated investment guidance. By using the product, customers will be able to get ahead in planning for their future while being involved in the process. 

In this example, we see that positioning your brand as the latest way to get personalized investment advice based on easy-to-understand data while acknowledging consumers' intimidation generates interest. It should also be noted that honesty in your company messaging is the best way to market, especially as a tech company. One of the top reasons tech companies lose business is hyperbole, which means that transparency in the company's vision and capabilities is crucial.

Branding is not simply a logo, colours, or font that represents the company. This is where some businesses stop and as a result have branding but no brand. True branding is developing emotional attachment behind the materialized elements of your brand. You will buy certain clothing because of how it makes you feel, certain product labels because you trust them, or support businesses that support other causes. In a competitive market, find your niche and use it to be unique (which you’ll see examples of further in).

Digital content marketing

Again, FinTech firms need to educate the audience on what's relevant and upcoming, which is where digital content tools such as videos, blogs, interviews, speakers, etc., are most valuable. No matter what stage your company is at, this will require consistent content that is engaging and informative. The average consumer attention span is 8 seconds which is generous if you observe how people scroll on social media. Essentially, the general rule of thumb with content is the instant hook/incentive which becomes a transaction in itself with the consumer.

No matter what it is, keep it simple. Crypto trading platform Coinbase uses “learn and earn” where users can receive cryptocurrency in exchange for completing lessons and quizzes. This is a perfect example of what content marketing should look like. The goal is to generate leads, conversions, and build awareness of your brand's initiative. If implemented correctly, you’ll find content marketing scalable and great for globally expanding your audience reach. Another good example would be to take a look at FinTech company Current, scroll at least three swipes through their website and you’ll see a great example of generating appeal in today's market. 

Create a mobile experience

This is pivotal to compete in 2022. Remember, FinTechs are up against traditional banking systems and are fully digital which means the best place they can beat them is in a mobile experience. Branding and marketing are great for getting the customer, but retaining that business comes from differentiation. FinTechs who are the most disruptive are the ones who function entirely online (otherwise known as neobanks).

Online banking is continuously growing; in the United States alone, there are over 23 million people who use only online banking services. The uprising of neobanks is enhancing this vision of a fully digitized consumer market. The top neobanks in North America (ranked in order) are Chime, Current, Aspiration, and Varo. While each has its unique features, the number one factor that makes them the best is their mobile experience. 

Get active on social media 

Over 30% of American consumers have at least one FinTech app on their mobile device and spend upwards of 5 hours each day on that device. This screams one thing for digital marketers: OPPORTUNITY. This is prime real estate for advertising in-app, especially for brands that operate solely online or that are trying to make the transition from traditional banking to modern FinTech. 

Specifically, brands want to keep up with current trends and initiatives while zeroing in on their target market. A great example of this is financial company Ellevest whose slogan is “by women, for women”. They tackle the imbalance of women's involvement in investing and offer personal finance coaching along with spending incentives. Ellevest ran a campaign called ‘’invest like a woman” which was aimed at inspiring women to take control of financial responsibilities that are traditionally built for men. 

You can see here that brands that add their touch are the ones who do the best. There is a level of authenticity that makes companies distinguishable, and to connect with the audience and take advantage of that, social media will be the best outlet. 

The takeaway

The online sector is where businesses are finding opportunities for longevity. These opportunities, however, only present themselves with well-thought-out execution. This is especially true for financial institutions since this business is built on trust and understanding. Remember, it’s not that you do it, it’s how you do it, and in the case of marketing, how you present your brand will factor into its lifespan.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.