The Green Side of Fintech

Social media gets a lot of hate because it promotes more negative events than positive ones. But, that’s not always the case. Like right now, COP 27 is still going strong and people actually care enough to post about it. It made Greta Thunberg known, the Swedish environmentalist who launched the climate strike. Our generation is definitely more environmentally conscious than the previous ones. This is why fintech is our future. It doesn't only simplify our lives, but it protects our planet as well!

1.    Less paper, more trees

Fintech has reduced the amount of paperwork one needs to submit any request. It also decreased the drive to banks and so, reduced the carbon footprint. There are even sustainable investing apps nowadays. One of these apps is Clim8, which allows users to invest in causes such as clean energy, water, sustainable food, and more.

2.    Moving to the clouds

Do you know how much energy on-site data centers consume?! I don’t, but it’s a lot. This is why fintechs are taking advantage of cloud technology because it requires little energy and little maintenance. Cloud computing is scalable, reliable, and eco-friendly. It significantly reduces companies’ carbon emissions. There are several cloud vendor services; Amazon Web Service (AWS), Microsoft Azure, IBM Cloud, Google Cloud, and more. According to a report from October 2019, switching to the AWS Cloud can help businesses cut their IT operations' carbon footprint by up to 88%.

3.    Green crypto

Sounds paradoxical, right? Mining crypto consumes a lot of energy. The Bitcoin business’ carbon footprint amounted to 64.27 Mt CO2 this year so far. So it does seem a bit off to claim such a thing as green crypto. However, to popularize green crypto, mining crypto through renewable energies is essential. Moving from a Proof-of-Work (POW) to Proof-of-Stake (POS) Consensus mechanism will reduce energy consumption significantly.

4.    Blockchains

A blockchain is a more secure and decentralized record of transactions. Nothing is hidden on the blockchain, from suppliers to buyers. As there are many businesses nowadays that claim to be green when in fact they’re just greenwashing, blockchain can expose them for you. It enables the environmentally conscious consumer to see where and how their green investments are being used.