Open Banking and its role in sustainability

Wednesday 5 June 2024 13:03 CET | News

Open Banking solutions provider Salt Edge has released an article which highlights how Open Banking can educate and modify behaviours to reduce carbon footprints. 

Since its launch in 2018, Open Banking has played a significant role in closing the gap between banks and other financial institutions, overall working towards improving the financial landscape. Considering its capabilities, with a single transaction being able to deliver insights into behavioural patterns, including travel habits, energy consumption, preferred merchants, dining preferences, and leisure activities, Open Banking has the potential to provide an array of financial products and services. These can include budget management, loans, insurance, and carbon footprint analysis.

Salt Edge has released an article which highlights how Open Banking can educate and modify behaviours to reduce carbon footprints.

In its article, Salt Edge highlights how Open Banking data can educate businesses and individuals on transaction CO2 impacts and support them in changing their conducts to reduce carbon footprints and developing a new journey for green Open Banking initiatives and climate fintech startups.

More information on the article

Through PSD2 regulations and Open Banking expansion, innovations and economic progress can be advanced due to their capabilities to increase transparency, control over finances, and competitiveness by directing banks to share data with third parties. In addition, they can deliver new investment opportunities, including green technology and renewable energy while assisting the financial sector in adopting ESG principles. Banks seem to understand the importance of sustainable projects, with a recent survey conducted on 300 financial institutions uncovering that 74% of them plan to invest more in these missions, while 73% intend to embrace ESG propositions by 2028.

Furthermore, as more organisations and companies globally aim to minimise their environmental effect, sustainable Open Banking comes as a solution for new services across different sectors, including transportation and energy, among others. By implementing Open Banking, companies are set to better cooperate and reduce environmental impact, while also increasing their efficiency and sustainability.

How can Open Banking support the environment?

Open Banking represents a growth driver for the fintech sector, with it enabling financial institutions and technology firms to mitigate issues, including global warming, CO2 emissions, and water pollution. Many businesses have integrated Open Banking into their operations to develop services that improve and protect the environment, with the travel and ecommerce industries being at the forefront of innovation. For example, ecommerce companies can minimise waste and overconsumption by leveraging Open Banking data to forecast consumer demand, which ensures that only the required amounts are produced and distributed.

When it comes to fintech firms, Open Banking allows them to provide digital tools and services that can be useful both for companies and individuals to assess and reduce their carbon impact. Salt Edge mentions that it is currently making efforts in this regard by providing Open Banking solutions or partnering with companies that raise awareness about environmental impact. Moreover, the fintech underlined its commitment to forming an ecosystem of partnerships to support banks in offering improved digital experiences, increasing efficiency, and conserving the planet’s resources.

For more information about Salt Edge, please check out their detailed profile in our dedicated, industry-specific Company Database.

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Keywords: sustainability , Open Banking, Open Finance, open data, Open Banking payments, Open Data Economy, Open Banking Ecosystem
Categories: Banking & Fintech
Companies: Salt Edge
Countries: World
This article is part of category

Banking & Fintech

Salt Edge

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