FinTech is changing the way that we handle money, updating and disrupting the status quo in financial markets and creating new opportunities and ways of doing business in our contemporary world. However, only a few FinTech companies can be categorized as truly ‘social’ and it is interesting to have a clear understanding of what criteria can be used to determine the social nature of a Fintech company.
A ‘social FinTech firm’ is not a financial technology company with a strong CSR (Corporate Social Responsibility) policy, but a one whose main purpose is to solve pressing challenges that our society faces today through the design and implementation of finance technology.
Some hints that can help us identify a social firm within the FinTech industry:
- Generation of positive impact for society and/or the environment. Financial performance has always been the objective of mainstream business, but for a social company it is equally important to measure the social impact that the firm is accomplishing.
- The social mission must be present in the corporate mission statement and bylaws.
- Transparent attitude to the public regarding business activities and financing.
- A fair governance policy (for example, not prioritizing one stakeholder over another). Preservation of the core company values must be preserved despite new management, new investors or even new ownership.
- Fair conditions throughout the workforce (transparency, offering of training or activities related to well-being, having a broad-based employee ownership, etc.).
- Collaboration with other local businesses within their community to achieve the social goal.
by Marta Muñoz