When thinking about environmental sustainability, fintech and banking are usually far from the first industries that come to mind. However, given that financial transactions are tied to just about all lines of business (and how industries more than individuals have a greater impact on the environment), sustainability is indeed economic.

As an important aspect of fintech and banking, integrating sustainability into business operations by responding to ESGs (environmental, social, governance concerns) is now par-for-the-course for most financial institutions.

Several have so far recognized the magnitude of their impact on the environment and other industries, and have taken steps and made notable strides to be more sustainable:

• Over 300 signatory banks have adopted the Principles of Responsible Banking—a framework which aligns signatory banks’ core strategies, decision-making, lending and investment with the United Nations’ Sustainable Development Goals, and international agreements such as the Paris Climate Agreement.
• According to its central bank, green financing by the banks in Bangladesh increased by 51.6 per cent in the October-December period of 2022 compared to that in the previous quarter.
• The London Institute of Banking & Finance (LIBF) and Egypt’s Financial Regulatory Authority (FRA), represented by the Regional Center of Sustainable Finance (RCSF) signed a Memorandum of Understanding (MoU) to promote Sustainable Finance via dedicated financial tools, standards, and reporting.
• The Asian Development Bank (ADB) sets aside $750,000 worth of technical assistance to support sustainable finance in ASEAN+3.
• Bank Australia announced that it will cease to offer loans for internal-combustion vehicles in 2025, and will solely provide financing for electric vehicles.
• And many others…

Going paperless

Indeed, the finance industry has the unique position of arguably having the most ways to contribute to sustainability. And the simplest, yet still most fundamental, of these is giving customers the option to go paperless.

Financial transactions have long been synonymous with paperwork, and the shift to digital banking is a simple yet effective way to significantly reduce one’s carbon footprint. For example, according to a study by Bank of America, a complete shift to online statements for just one year by all of its bank customers would effectively result in a reduction of an estimated 37,000 metric tons of greenhouse gas (GHG) emissions and 136 million gallons of blue water consumption.

This reduction in carbon footprint is magnified when customers are empowered with bank products and services that help them transact across institutions and borders. Such is the case with Black Banx, a fintech platform that connects people and businesses via smartphone and online by enabling them to send and accept local and international payments almost instantly without any physical paperwork.

Operating sustainably

Launched in 2015 by German billionaire founder and CEO Michael Gastauer, Black Banx has since amassed over 20 million retail customers and over 1.5 million business customers.

Boasting of the features of a crypto exchange, the Black Banx platform gives clients full autonomy and allows them to use their respective crypto balances to make instant payments directly to third parties directly in almost any location in the world.

Given the continued rapid growth of its clientele and company overall, Black Banx has committed to considering the long-term effects of its activities and to generating sustainable value for clients, employees, investors and  society at large.

This has meant carefully considering and assessing the direct and indirect economic, social and environmental aspects and impacts of the company’s decisions. One such decision is the Black Banx’s pledge to become net zero by 2030 across all of its direct and indirect emissions by aligning all business activities with  the goals and timelines of the Paris Agreement.

The foundation of its sustainability initiative begins within its own business operations, and the participation of its 3000-plus and counting employees:

• Stay at home – Motivating employees to work from home ultimately results

in a reduction of fuel combustion and energy consumption.

• Go digital – Specifically to reduce or eliminate business travel by replacing meetings with video calls, in effect saving valuable working hours and significantly reducing the use of fuel.

• Work from anywhere – The reduction of office space to a regulatory and operational minimum is a key component in minimising energy consumption and waste produced. In combination with the previously mentioned “stay at home” strategy, Black Banx aims to reduce its office space use by 95% at the end of 2025.

These practices, along with the continued advancement of sustainable financial technologies and policies, allows both companies and its customers to “bank” on a cleaner and more absolute environment.