Fintechs and Corporate Social Responsibility: Paving the way for charitable giving
Ethics and corporate social responsibility without a doubt play a huge role in contemporary business practices- and fintech companies are involving themselves in the process by tapping into corporate charity and social responsibility initiatives. As Hadas Tayeb states in his article, (https://tearsheet.co/future-of-investing/what-fintech-companies-can-gain-from-a-corporate-giving-program/) fintech companies can- and are- winning big by investing in corporate social responsibility.
A study done in 2015 found that as many as 70% of millennials give serious consideration to companies’ social and environmental commitments in deciding where to work and where to spend their money.
CommonBond Credits is a popular student loan platform that is capitalizing on millennials’ strong demands for corporate social responsibility- its “1-for-1” giving model provides funding to the education of needy children from lower socioeconomic backgrounds; The company has seen a surge in job applications by socially-conscious millennials who want to be part of it and make a difference in the world around them.
CommonBond’s socially-conscious business model is enabling them to grow their customer base at an exponential rate- CEO David Klein estimates that 50% of the company’s customers are acquired via word of mouth- which is the largest amount of any other company in the student loan industry. Klein chalks up the success in their massive growth to their commitment to corporate social responsibility- which has gotten a lot of people talking and recommending the firm to their family and friends.
Furthermore, recent studies conducted have found that up to 73% of millennials say that they are willing to pay extra for products or services that are ethically-sound.
Fintechs are also driving charitable giving thanks to blockchain and cryptocurrencies- and the rise of non-profit and charitable giving apps such as ShareTheMeal, Coin Up, and Charity Miles are making it easier to collect and facilitate donations for organizations with the click of a button- which in turn makes charitable giving much easier and less time consuming for people. These apps are also lowering the costs of processing funds, allowing charitable organizations to hold on to a greater portion of what they receive. Enabled by fintech- this truly is a win/win system for everyone involved.
As fintechs shape the future of charitable giving and corporate social responsibility; our team at Apaylo fully recognizes the value and importance of working with our partners in the community to give back and to help other people develop their full potential.
As Apaylo’s Executive Director and Chairman Gary Seveny states, “Apaylo is committed to helping co-operatives and credit unions in Canada grow and prosper. Our e-Payment platform is viewed as co-operative based, leverages credit unions and embraces digital transformation. Apaylo is proud to be a presenting organization to the Co-operative Young Leaders Camp this year. Apaylo’s management team believes in fostering leadership and stewardship by example and coaching. It is our hope that these young leaders will take the helm and continue to nurture the co-operative spirit inherent in our country.”