The FinTech Impact Report: Working through the world’s to-do list #FinTechforImpact FinTech bridges the divide Traditional financial institutions may reach more people, but emerging FinTechs have a greater impact intensity, addressing social challenges while driving productivity in the sector. KEY: Radius: Impact score Arc: % of companies Colour: Impact category Relative to both leading and emerging FinTechs, Productivity is intrinsically tied to innovation, and the Emerging FinTechs – those founded in the last 5 years – incumbent financial institutions (FIs) have a larger elevated productivity score (43 NIR) of the UK’s most outperform on People (41 NIR) primarily due to their influence on People (29% vs. 12% & 19%) and Place (10% mature top 300 revenue-generating FinTechs solutions offering alternative access to essential credit vs. 2% & 1%) due to their vast customer and employment predominantly stems from their enablement of other and financial services (e.g. youth banking). networks. However, their depth of impact on People, businesses and SMEs through services and These early-stage FinTechs are the only sub-sector to especially for vulnerable groups, trails FinTechs (33 NIR infrastructure. have a positive impact on Planet (+5 NIR), partly because vs. 35 & 41). FinTech’s prowess in compliance and security bolsters their small scale equates to minimal emissions impact, Traditional FIs have a much larger net negative impact its Peace score (27 NIR). However, it is only a medium- but also because of the emergence of new sustainability- on Planet (-21 NIR vs. -10 & +5), largely due to the positive impact due to other FinTechs operating in focused propositions that attracted record funding in environmental repercussions of the secondary emissions emerging and unregulated areas with limited customer 2022 (1). Examples are climate analytics for parametric 19 19 20 from the assets they finance. protections and market stability risks e.g. digital assets. insurance and ESG investment tools. 18