We often explore how fintechs are changing the banking and payments landscapes, and sometimes look into how their solutions are supporting financial inclusion and helping people develop healthy financial habits. But to kick off 2025, we’re placing a focus on ‘fintech for good’ to find out exactly how much impact fintechs are having – both positively and negatively.
The term ‘fintech for good’ is used quite loosely today, with many organisations stating they are ‘for good’ with the aim of helping a specific community or group. However, fintech is a big industry and some sub-sectors do a much better job of demonstrating their work towards their ‘good’ values and goals than others: in this article, we set out to find out which sub-sectors are doing an outstanding job at ensuring better financial well-being.
Paytech can bring people together
The reason many leave countries with developing or uncertain economies is to find a way to make more money to help their families back home. However, historically, those families in developing countries have not been able to experience the full fruits of the labour as cross-border payment firms have taken a big cut. Briana Marbury, CEO at the Interledger Foundation, the nonprofit grantmaking foundation, explores how in 2025, this challenge will continue to be tackled with banks making new partnerships with paytechs.
“The ability to send and receive payments to anyone, anywhere in the world is fundamental to financial well-being — but has historically been difficult to accomplish. Sending cross-border payments, for example, often comes with heavy processing costs and conversion fees. We’ve seen more fintechs coming forward to solve these challenges and many others that have made payments notoriously difficult over the past several years. This year, we’ll start to see their work drive tangible change.
“For instance, in Mexico, we’re working with local fintechs and other organisations including The People’s Clearinghouse and The Mexican Association of Credit Unions of the Social Sector (AMUCSS) on an initiative that will introduce an interoperable, real-time payment pathway between the US and 140 rural community banks. In addition to arming these banks with the digital infrastructure they need to receive remittances, the initiative will fuel local innovation by providing community banks additional money in their ledger to offer loans.”
Lending with a focus on sustainability
When the term ‘fintech for good’ is said, it is easy to think of end customers benefitting in a certain way. While this certainly is important and a key aspect of ‘fintech for good’, another valid component of it involves ensuring organisations are having a good impact more generally on the environment. As such, Sandrine Markham, global lead sustainable finance solutions, Finastra, the financial software applications and marketplaces provider, explores the positive impact the corporate lending sector will have on financial well-being.
“To help the world move towards a greener, more sustainable future, sustainable corporate lending and more inclusive trade finance will play key roles in supporting people’s financial well-being in 2025.
“Through the integration of third-party ESG data, fintechs can provide deeper insights to banks and businesses, helping them make more informed decisions that support environmental and social progress. Impactful and sustainable lending, guided by data and measurable key performance indicators, is crucial to aligning borrowers and investors through sustainability-linked loans and bonds, resulting in positive societal change.
“Sustainable finance is one of the first topics of conversation in most financing deals today – making digital solutions that automate processes and provide real-time ESG data essential, not only in supporting risk and return decisions and compliance, but in enhancing long-term financial performance and sustainability.
“Trade finance will also see significant advancements this year, with an opportunity for fintechs to provide digital solutions that streamline loans and working capital management, to deliver sustainable and efficient finance across diverse global markets. By automating compliance and documentation, reducing errors and speeding up the transaction process, trade finance will become more efficient and inclusive, opening up new opportunities for people and businesses of all sizes.”
Supporting the unbanked and underbanked through lending
In a similar vein, Alina Zavorokhina, head of business and product at inDrive.Money, which makes digital financial services accessible directly via inDrive, the mobility app, also looks at the lending sphere, however, she notes its impact through a consumer lens. Zavorokhina notes how the gig economy has been neglected by traditional financial services, but lending fintechs have an opportunity to support their financial well-being.
“I believe that consumer lending will be one of the most impactful sub-sectors of fintech in terms of improving people’s financial wellbeing in 2025. Responsible lending can unlock significant opportunities for millions of unbanked and underbanked gig economy workers and their families — helping them cover everyday needs, support their businesses, and ensure they avoid turning to high-commission informal lenders for financial support.
“Access to fair credit isn’t just a convenience; it’s a necessity. By offering lending products that focus on supporting borrowers and helping them build credit histories, fintechs can help people avoid falling into cycles of bad debt. Over time, this enables more and more individuals to access larger loans on better terms, facilitating life-changing purchases like cars, homes, or even costly education for their children.
“At inDrive.Money, we are committed to exploring lending solutions that are transparent and fair, so drivers and couriers can repay what they borrow on time, build credit, and fulfill their biggest dreams. Our focus remains on creating user-centric, low-cost financial tools that improve everyday financial wellbeing and create long-term opportunities for those who need them the most.”
Redefining how community banks operate through lending automation
Matt Johnner, president and co-founder at Participate the firm democratising loan trading through automation, also noted the importance of facilitating consumer lending saying: “Lending automation, particularly in loan participations, will redefine how community banks operate.
“Platforms like Participate allow banks to extend credit more confidently by reducing concentration risk, enhancing liquidity, and boosting efficiency. By automating traditionally manual processes, banks can lend to more borrowers, especially small businesses and underserved communities. This democratisation of credit access fosters economic growth and resilience.
“Financial wellness platforms will continue to empower individuals, offering tools for budgeting, saving, and investing that adapt to personal circumstances. With advances in artificial intelligence, these tools will become more personalised, helping users make informed decisions and improve their financial health. These platforms will also emphasise education, bridging knowledge gaps that prevent many from achieving financial security.
“Blockchain-based technologies, especially in payments and remittances, will enhance transparency and reduce costs for cross-border transactions. Stablecoins and decentralised finance (DeFi) platforms will make banking services accessible to the unbanked, offering alternatives that are faster, cheaper, and more reliable than traditional systems.”
Utilising embedded finance and AI
Probably unsurprisingly, artificial intelligence (AI) could play a huge role in the fintech’s sector journey to becoming more ‘good’. However, its benefits will be truly seen when combined with other offerings. According to Ryan Miemczyk, director of research, Trust Impact Ltd, the social impact measurement platform, the use of automated services combined with the perks of embedded finance will truly see the sub-sector flourish by helping customers first, before positively impacting the wider fintech ecosystem.
“Financial education and literacy tools will have the most profound impact on financial well-being by 2025. Studies show that one in three UK adults lack confidence in managing money, and 39 per cent of people have less than £100 in savings, putting them at significant risk of financial hardship. These tools can play a transformative role in bridging that gap, empowering individuals to build financial resilience through proactive education and behavioural nudges.”
Positive examples
Miemczyk noted: “Fintech platforms like Cleo and Moneyhub are already showing how AI-powered financial coaching and personalised insights can help people make better financial decisions in real time. These tools not only increase awareness of spending patterns but also encourage users to develop positive financial habits, such as saving regularly or reducing debt.
“In 2025, we’ll likely see embedded financial literacy within other fintech solutions — offering budgeting advice at the point of payment, for example. This shift from reactive problem-solving to proactive guidance will help people take control of their finances before problems arise.
“Crucially, fintechs in this space must go beyond reporting usage metrics to focus on outcomes that matter — are users building emergency savings? Are fewer people falling into debt? By tracking these real-world outcomes, financial literacy tools can demonstrate their impact on financial well-being and truly live up to the promise of being a ‘fintech for good’.”
More perks of using AI
Jennifer Tescher, president and chief executive officer at Financial Health Network, a nonprofit financial consultancy, also highlighted another way in which AI can be positively used to improve financial well-being. She said: “Looking ahead to 2025, I see enormous potential in fintech sub-sectors like agentic AI (financial agent AI bots), savings automation, and cash-flow-based underwriting.
“These innovations hold the promise to not only transform individual financial lives but also to shift the broader financial system toward equity and resilience. Fintech’s greatest achievement will be when advancing financial health for all becomes a universal benchmark for success.”
Personal contact on big-ticket items
A vehicle is a big financial commitment and understanding the process can be challenging. Mary Beighton, director of people and culture, Zuto, explores the important role lenders have in ensuring clarity and in turn, financial wellness for consumers, on any products they buy through a personalised service.
“For many people, a vehicle is the second biggest financial commitment they will make (after buying a house), so the car finance industry has a clear responsibility to focus on good outcomes for customers.
“Finance is often the only way people can afford a car, which they might rely on to get to work, or to transport family members to necessary appointments. All financial services companies must be mindful of the struggles customers are facing and provide easy-to-understand information.
“In motor finance, for example, responsiveness and clarity around finance approval, available APRs and the selection of lenders is important. Technology has brought transparency and speed to the process of applying for finance and, as the market shifts online, customers are increasingly comfortable with using our marketplace to facilitate their car purchase.
“While digitisation has changed and improved the sector immeasurably, having human contact during the process is still a valuable element. We find our customers appreciate a telephone chat to ensure they understand what they are buying: it personalises the service, making sure they find the package that is right for them and reassuring them that they’re not alone when trying to decipher complex documents online.
“Keeping customers at the heart of everything we do requires a responsible approach that ripples through the way a business is run. As an industry, we have an opportunity to demonstrate that the impact we make collectively reaches far beyond simply helping put customers into cars.”
Focusing on financial inclusion and empowerment
For James Toledano, COO at Unity Wallet, a variety of fintech subsectors can positively impact financial well-being, ranging from more ‘traditional’ fintech offerings like payment technology providers to the more niche offerings that consumers may not understand as well, including crypto and stablecoins.
“Focus on financial inclusion and empowerment will have the biggest impact given the sheer volume of people currently excluded. In the same way, the advent of the internet levelled the playing field in terms of universal access to information, fintech offers the same in financial terms.
“Digital lending platforms that cater to underserved demographics, such as small business owners in developing regions, can unlock economic growth through micropayment and loan systems ideally suited to fintech and DeFi companies. Similarly, wealth management tools leveraging AI to democratise investing and promote financial literacy will empower individuals to make better financial decisions.
“Payment solutions using crypto to facilitate cross-border transactions with low fees will benefit migrant workers and globalised communities. This is already the reality when we look at how stablecoins are being used. DeFi also holds promise, offering access to financial services without traditional gatekeepers and their vastly unfair credit rating systems.”
