Is disruption of financial services a social good?
The RFI Foundation, in partnership with the Swiss Finance + Technology Association, Finocracy and the Responsible Finance & Investment (RFI) Summit partners, launched the Support Disruption for Good (SDG) Challenge to find the most promising ethical, responsible or Islamic FinTech innovation and connect them to the leading institutions in the responsible finance industry.
Funding for FinTech startups has seen accelerating growth – at an annual growth rate of 58% between 2012 and 2016 according to KPMG and PitchBook. The range of applications for FinTech has grown as well by disrupting existing business models to lower costs and increase access. The growth will continue driven by rapid adoption of smartphones by consumers under 35, where adoption rates are 20-30 percentage points higher than older demographics according to Pew Research Center.
Using similar disruptive approaches, FinTech could transform the delivery of responsible finance where Millennials have consistently shown greater expectation for the integration of environmental, social and governance (ESG) factors. FinTech allows institutions to leverage technology-based solutions to lower costs to consumers, increase financial inclusion, and measure the impact of its activities to support the UN Sustainable Development Goals.
Commenting on the SDG Challenge, Blake Goud, CEO of the RFI Foundation said: “Consumers have demonstrated their preference for alternatives to conventional finance in many forms, through FinTech, responsible investment and Islamic finance. Younger people, who will decide where tomorrow’s assets are invested, are leading the trend across technology and responsible finance and the SDG Challenge hopes to highlight emerging growth opportunities that combine responsible finance and financial technology.”
John Hucker, CFA President of the Swiss Finance + Technology Association commented: “As a growing FinTech hub, Switzerland has seen a significant amount of overlap between FinTech and impact investing. By being involved in the SDG Challenge, we hope to facilitate new FinTech players working to leverage the power of technology in support of sustainable development.”
Mohammad Raafi Hossain, CEO of Finocracy commented: “The FinTech market is just beginning to shift from viewing technology as a way to reinvent traditional business models to one that can be transformative in shifting the thinking of financial services towards more ethical and responsible practices. We expect the Challenge will help identify some of the emerging businesses who can accelerate this transition”.
The SDG Challenge opens today and will remain open until March 17. All applicants will be judged against a transparent set of criteria by an independent judging panel drawn from across the responsible finance and FinTech industry. During the review process judges will evaluate the ability of each entrant to effectively scale, contribute to financial inclusion, contribute to the UN Sustainable Development Goals while being financially sustainable.
Three finalists will be selected to present their innovation on 4 May 2017 during the Responsible Finance & Investment Summit in Zurich, organized by the RFI Foundation and Swiss Arab Network. Delegates will cast the final vote to select the winning innovation. The winner of the SDG Challenge will have the chance to work closely with the judging panel as well as gain exposure during the Summit and have their story told to the wider responsible finance industry after the Summit ends.
For more information about the Challenge and to download the entry forms, please visit www.rfisummit.org.
