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As a transboundary crisis, climate change is believed to be one of the most critical global challenges of modern times. To mitigate its devastating effects, comprehensive green transformations across industries has always been emphasized. In terms of financial sector, FinTech companies are spearheading innovative solutions to decarbonise their operations and those of their clients, setting a new standard for sustainable finance.
The concept of green transformation combines a set of policies, strategies, and transparent practices with the goal to ensure economic, social, and environmental sustainability by enhancing energy efficiency, reducing carbon emissions, promoting sustainable use of natural resources, minimising environmental degradation, and last but not the least, increasing societal participation in the process.
In Bangladesh, Mobile Financial Service (MFS) provider bKash, characterised as a FinTech, takes the lead in reducing carbon footprint in financial sector by revolutionising the cashless journey. Since inception, bKash emphasised on financial inclusion of unbanked and underbanked population in the country by ensuring their access to essential financial services through simplest mobile phone from the comfort of home. Over the years, bKash has contributed to a behavioural shift among the customers towards cashless lifestyle by providing customer-centric innovative financial products that are secure, convenient and easy to use. Simultaneously, the Bangladeshi unicorn has also been developing an ecosystem for digital transactions through collaboration with banks, financial institutions, utility services providers, telecom operators, government service providers, etc. that also stimulates overall green transformation of the financial sector.
A decade ago, it was normal for majority of the people to travel long distances spending time and money, particularly in the countryside, to avail a simple financial transaction, for say, paying utility bills. However, it is no more a case, because people now can pay bills through their bKash account in seconds without even setting their foot outside home. Like this, the leading MFS provider, in addition to own products, has introduced financial tools and services of different banks, financial institutions and other service providers in its platform, enabling the customers to embrace a broader digital lifestyle. Aligned with the global agenda of net zero emissions, such lifestyle greatly cuts transportation related emissions and use of papers, mitigating carbon footprint in customers’ daily life as well as service provider’s operation, as they need fewer physical infrastructure to provide services.
bKash has introduced financial products, such as ‘digital loan’, ‘pay later’, weekly and monthly DPS in collaboration with traditional banks, which customers can avail in paperless manner. Paperless transactions are faster, cheaper, accurate and transparent which at the same time enable customers to take part in environment conservation. Instead of paper receipt, bKash issues digital receipt for every transaction. To make the concept of digital payments sustainable, bKash has developed a network of over 850,000 merchant points across the country where businesses can accept payments from customers through paperless and contactless QR code scanning. By bringing convenience in everyday life for the customer base of over 75 million, bKash has become a part of every family in Bangladesh and the brand name has become a verb as people simply say ‘bKash me’ instead of sending money digitally.
In conclusion, FinTech companies are emerging as powerful allies in the fight against climate change by practicing green transformation in daily operation. By providing innovative financial solutions, promoting sustainable consumption, and improving the efficiency of financial systems, companies like bKash can contribute more in sustainable and environment-friendly future.
Messenger/Shahed
