Fintechs and banks join forces for green transition

Fintechs, in collaboration with banks, can help accelerate the green transition in the financial sector, according to the latest report from PA Consulting and Copenhagen Fintech.

This article sheds light on the crucial role of partnerships between traditional financial institutions and nimble green fintech firms in driving the green transition.

The report, marking the inaugural mapping of the Nordic climate fintech market, reveals a significant surge in the climate fintech sector’s activity, the article points out.

In 2022 alone, Nordic climate fintechs—categorised into sustainability services, sustainable investments, carbon emissions reduction solutions, and waste reduction solutions—secured investments nearing €60 million, totalling approximately DKK 450 million.

Highlighting the necessity of collaboration, the report emphasises examples such as Danske Bank’s collaboration with climate fintech Eivee for climate reporting and Matter’s partnerships with Nasdaq Capital Access Platforms and Evestment for ESG analysis. Nevertheless, it acknowledges challenges stemming from differences in culture and mindset between the fintech and banking worlds.

Copenhagen Fintech CEO Thomas Krogh Jensen underlines the pivotal role of collaboration, stressing the importance of aligning expectations and fostering ongoing dialogue during partnership activities.

Ultimately, the report advocates that banks should engage in partnerships with climate fintechs to fuel the sector’s growth and collectively address the pressing need for climate action. Through collaborative efforts, financial institutions can contribute significantly to accelerating the adoption of green solutions and navigating the challenges posed by climate change.

Read the original article in Danish in Finanswatch here.