An inconvenient truth escalating within our globalized world is climate change. Due to public pressure and its globalized impact beyond geography and industry, the banking industry has glacially responded. However, the total impact and risks that the financial ecosystem has on the climate have not been fully assessed or factored into the bigger picture.
Firstly, the conventional banking industry has minimal, obligatory regulatory, and supervisory infrastructure due to its failure to integrate into FinTech fully. However, the foundation of emerging Neobanks is digitization, whereas traditional banks have been slow to incorporate their infrastructure beyond brick-and-mortar. Moreover, the current focus within the industry has been navigating the globalized financial fallout of the ongoing pandemic other than going green. That said, there is a gradual shift towards the “greening” of the financial ecosystem, with the acronym the NGFS (Networking for Greening the Financial System).
Central banks and their administrators contribute to the analysis, development, and management of climatic and environmentally-related risks and rewards within the financial marketplace. Although their mobilization is sluggish, it encourages the industry’s ecosystem to become more fiscally sustainable, with new roots established with conservational, green roots.
Traditional banking’s economic redevelopment towards having an economical, greener footprint has seen the private sector embrace these initiatives into their business strategies and risk management systems. This transition is a savvy tactic creating products that expand their marketplace potential. Youtap is already onboard with its software and technology. Thye have “greened” their products, satisfying their growing client base minimizing their global carbon footprint with responsible service.
Transitioning a business model from traditional to conservational is uncomplicated. It is, however, a transition that is gaining recognition and traction. As the world continues with the need to change established practices, Youtap is already advancing its software to diminish the growing gap between concrete and cyberspace. The answer to the header is NO!