New research by GoImpact and the CUHK Business School highlights the importance of government support in developing a prosperous green FinTech network in Asia.
According to research by Hong Kong sustainable development ecosystem and education platform GoImpact and The Chinese University of Hong Kong (CUHK)’s Business School on five economies – Hong Kong, Singapore, Thailand, Indonesia, and Korea – representing “the diverse stages of development in Asia,” it was found that government support is key to fostering a green financial technology (FinTech) ecosystem across the region.
Furthermore, emerging startups offering a wide scope of green FinTech services such as green variants on digital lending, digital asset solutions, digital asset payment, digital investment solutions, digital analytics, crowdfunding, and regulatory technology (RegTech), are more sustainable than traditional banking.
The “Exploring the Green Fintech Ecosystem in Asia: Insights from Five Economies in APEC” took a collaborative viewpoint on how Asia’s economies can work together to set best practices to foster a green economy.
“This research paper offers a glimpse of trends and insights for the five Asian economies in terms of Green Fintech Ecosystem health, government initiatives and supporting institutions. As one of the leading business schools in Asia, we will also continue cultivating talents with a socially responsible mindset and equipping them with the skills and knowledge to make a positive impact for the betterment of the Green Fintech industry,” shared Prof. Kalok Chan, Wei Lun, a Professor of Finance at the CUHK Business School.
The scope of green FinTech involves the use of eco-friendly tech to provide solutions that best serve consumers’ and economies’ best interests. Industry leaders from the five reviewed nations called on governments to foster a supportive environment for green FinTech to thrive, which can be enabled through “sustainable regulatory frameworks, requiring disclosures, reporting, and thresholds, and providing incentive programs for growth in the industry.”
To further foster this change, environmental, social, and corporate governance (ESG) regulations are necessary, with case studies in Hong Kong demonstrating that startups who take part in green reporting have expanded faster due to ESG mandates.