5 Sustainable Finance Management Trends to Know About in 2024
With our resources depleting rapidly and the population expanding, sustainability is the need of the hour. Fortunately, as individuals and businesses realize its importance, more businesses and sectors are considering sustainable practices to contribute to a better world while continuing to earn profits. FinTech is one of these sectors that has contributed to a more environment-friendly, sustainable existence, and here’s how.
Digital Payments
The world is inching towards a cashless economy, and this is great news for the environment at large. With fewer notes having to be produced and fewer checks issued, we are on our way to reducing our paper usage. Of course, the added advantages of a cashless economy are remarkable efficiency in completing transactions and better finance management for businesses.
Contactless Payment Methods
A related sustainability initiative is contactless payments, which have eliminated the need for paper tickets, physical receipts, etc. Many retail outlets and businesses offer their customers contactless payment options, so that there’s minimal environmental damage and resource utilization.
Digital Wallets
With digital wallets, one can use a smartphone to complete transactions through a mobile device. These wallets reduce the need for cash payments as well as any wastage taking place because of credit or debit cards getting destroyed. Many businesses and individual users are conveniently switching to digital wallets these days, which has been contributing to less paper use and wastage.
Open Banking
This concept basically leverages application programming interfaces, or APIs, to grant financial service providers open access to consumer banking, transaction, and other essential information from banks and NBFCs. With less paperwork, the practice has paved the way for sustainable financial practices, while also facilitating innovation and customization of services for businesses.
Green Loans
These loans are specifically issued to borrowers who plan to utilize the entire amount towards projects pertaining to sustainability and the environment. By funding such projects, borrowers directly contribute to a better world, while lenders indirectly help them fulfill this goal. In India, gold bond issuances had reached a whopping $21 billion as of early 2023.
Digital Invoicing
Gone are the days when lengthy invoices used to be printed and manually shared with clients. With FinTech apps, businesses can now easily share digital invoices, which can be generated automatically through the app and sent directly to the payee. Such digital invoicing processes have helped reduce paper usage considerably, facilitating a better environment.
With several digital practices in place today, finance management has not only made life incredibly convenient but also sustainable for the future generations. These days, ESG factors are also being considered in finance and investment to aid sustainability. We at Zuron are excited to announce that we are in the process of becoming ESG compliant, so that our business operations are aligned with creating a positive workforce and resolving environmental and social issues that majorly affect the world today. Help us in our journey towards facilitating a better existence, one step at a time. Click here to get in touch with us and know more about our services!
