Integrating ESG Principles for Social Impact: How Inclusive Fintech is Transforming Financial Inclusion

K Kanimozhi; C Vethirajan

doi:10.34293/management.v13iS1-i1-Feb.10337

K Kanimozhi Ph.D. Research Scholar (Full Time), Department of Corporate Secretaryship, Faculty of Management, Alagappa University, Karaikudi
C Vethirajan Senior Professor & Head, Department of Corporate Secretaryship, Faculty of Management, Alagappa University, Karaikudi

DOI: https://doi.org/10.34293/management.v13iS1-i1-Feb.10337

Keywords: ESG Integration, FinTech, Financial Inclusion, Underserved Populations, Sustainable Development, Social Impact

Abstract

This study investigates how Environmental, Social, and Governance (ESG) principles are being applied in the FinTech (Financial Technology) industry and whether applying those principles can help improve access to financial services for previously under-represented groups. Utilizing both qualitative and quantitative methodologies, data was collected using descriptive, inferential, and themati analyses. Results indicated that by bringing together all organisations working within the FinTech industry to incorporate ESG principles into their operations, FinTech will be able to establish greater transparency and accountability, increase trust in FinTech and improve access to digital financial services for historically underserved populations/communities.Interviews with FinTech industry experts provided insight into opportunities within the FinTech sector for financial inclusion (innovation, inclusion, scalability), as well as obstacles or challenges (regulatory, measurement difficulties). Overall, this study supports the conclusion that the ESGdriven FinTech industry plays an important role in developing sustainable financial systems that can create an equitable society and support long-term, sustainable, inclusive economic growth.