The proliferation of Financial Technology (Fintechs) across the globe has without a doubt continued to play a crucial role in the contribution and achievement of the United Nations Sustainable Development Goals.
As Fintechs launch to become key drivers for financial inclusion, this, in turn, underlies a sustainable balanced development, as embodied in the United Nations Sustainable Development Goals (SDGs).
Fintechs are an evolving intersection of financial services and technologies which have been used to improve access to finance, lower transaction costs and enhance the efficiency of the financial sector.
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There are reports and evidence that economies with high financial inclusion rates have significantly lowered poverty rates. The World Bank has identified financial inclusion as an enabler for 7 of the 17 SDGs.
What Are the United Nations Sustainable Development Goals?
On September 25, 2015, the United Nations adopted the Sustainable Development Goals (SDGs) which was formally adopted by (193 out of 195 countries in the world, as a universal call to action to address a wide range of social economic, and environmental challenges, to work toward a more sustainable and equitable future by the year 2030.
The United Nations adopted 17 goals which are
1.) No Poverty
2.) Zero Hunger
3.) Good health and well-being
4.) Quality Education
5.) Gender Equality
6.) Clean Water and Sanitation
7.) Affordable and Clean Energy
8.) Decent Work and Economic Growth
9.) Industry, Innovation and Infrastructure
10.) Reduced Inequalities
11.) Sustainable Cities and Communities
12.) Responsible Consumption and Production
13.) Climate Action
14.) Life Below Water
15.) Life on Land
16.) Peace, Justice, and Strong Institutions
17.) Partnerships for the goals
At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries, developed and developing in a global partnership.
They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, eradicate inequality, and spur economic growth, amongst others.
As Fintechs continue to roll out innovative modern technologies, it has continued to play a pivotal role in assisting the United Nations in achieving its SDGs.
Check Out How Fintechs Are Contributing to The Achievement of The United Nations Sustainable Development Goals
1.) No Poverty: Fintech Solutions such as digital banking and Microfinance, provide access to financial services for unbanked and underserved populations, helping to reduce poverty and promote financial inclusion.
Some of these Fintech platforms offer microloans to individuals and small entrepreneurs who lack access to traditional banks. These small loans can be used for income-generating activities and to lift individuals out of poverty.
According to the World Bank, financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs delivered in a responsible and sustainable way.
2.) Zero Hunger: Fintech solutions have continued to develop technologies that improve access to credit and insurance for small-scale farmers, enabling them to invest in their agricultural practices and reduce food insecurity.
Some of these solutions facilitate digital payments and remittances, which can improve the efficiency of food supply chains. Farmers get to receive payments digitally, reducing the reliance on cash and the associated risks.
These Fintech-driven initiatives have the potential to empower smallholder farmers and strengthen food systems in both rural and urban areas.
3.) Good Health and Well-Being: Fintech innovations support healthcare access by facilitating digital payments for medical services, insurance coverage, and telemedicine, promoting better health outcomes.
Several of these Fintech platforms offer innovative solutions for healthcare financing, including health savings accounts (HSAs) and health insurance plans. These tools allow individuals to save for future medical expenses and provide coverage for healthcare services, reducing the financial burden of medical treatments.
4.) Quality Education: Fintech significantly contributes to improving the quality of education by addressing financial barriers, enhancing access to educational resources, and streamlining administrative processes.
These innovative technologies enable digital payment solutions for educational institutions by enabling digital payments for school fees, providing online learning platforms, and facilitating educational financing options.
Also, fintech facilitates payments for online courses and e-learning platforms, expanding access to education for individuals who may not have access to traditional institutions.
5.) Work And Economic Growth: Fintech fosters economic growth by supporting SMEs with access to financing, streamlining payments, and enhancing the efficiency of financial transactions.
Fintech platforms facilitate access to capital for small and medium-sized enterprises and startups through digital lending, crowdfunding, and peer-to-peer lending. This helps businesses expand, invest in new technologies, and create jobs, driving economic growth.
6.) Reduced Inequality: Fintech reduces economic inequality by providing financial services to marginalized communities and facilitating remittances at lower costs, helping to bridge income disparities.
These platforms provide access to financial services for underserved and unbanked populations, including those in remote areas or low-income communities. This inclusion helps bridge the gap between the financially excluded and the formal financial system, reducing economic inequality.
Conclusion
Fintech’s ability to reach underserved populations, streamline financial processes, and foster innovation, positions it as a valuable tool in advancing the UN’s sustainability agenda.
As more fintechs continue to launch innovative technologies, this will play a key role in enabling the United Nations to achieve a significant amount of their goals by the year 2030.