UK Fintech 2024: Driving Inclusion, Productivity, and Sustainability

The FinTech Impact Report 2024 highlights that the UK’s fintech sector has enhanced financial inclusion and supported sustainable initiatives nationwide, writes Finextra. The study, conducted by Innovate Finance and Vested Impact, surveyed financial institutions and 3,560 fintech companies to assess their influence, using the United Nations' Sustainable Development Goals (SDGs) as a framework, focusing on Productivity, Place, People, Planet, and Peace. The findings reveal that UK fintechs are generally contributing positively across all SDGs.

According to the report, 98% of fintech companies have boosted productivity in the UK, 39% are actively promoting financial inclusion, and 26% are committed to safeguarding data privacy.

Kimberley Abbott, CEO of Vested Impact, emphasized: “Just a few weeks ago, the United Nations and all member states reaffirmed that the UN Sustainable Development Goals represent the most comprehensive and people-focused framework for achieving a just and prosperous world. A crucial factor in achieving these goals is mobilizing the private sector as a force for good. However, to do so effectively, we must go beyond assessing company behavior and examine the full scope of positive, negative, and indirect impacts a company’s actions, products, and services have on society and the environment, all backed by data and science – which is exactly what this report achieves.”

While progress has been made, more efforts are needed to reduce fintech’s environmental impact. Only 10% of fintech companies are making a positive environmental impact, while 73% are still having a negative effect—although this figure has dropped by 13% from last year. Additionally, 14% of fintechs have positively impacted their communities, with just 3% having a negative impact.

Jon Williams, Global Financial Services Sustainability Lead at Accenture, remarked: “Collaboration across the financial sector is more crucial than ever to drive meaningful, sustainable growth. UK fintechs have empowered industry and society through research, development, and innovation. This report quantifies the sector’s transformative role in the UK over time and underscores the need for greener practices. As the first report of its kind in the fintech community, we hope it accelerates the adoption of sustainability principles in the design and implementation of new technologies.”

Innovate Finance also introduced Pay360: Across the UK, a project designed to foster fintech growth outside of London. Supported by the government, this initiative will host pitch events nationwide over the next year.