<Attention Job Seekers> Spring Asia does not represent Triterras for our recruitment needs. Click for details.

  • Home
  • Resources
  • FinTech’s Green Revolution: Nurturing Sustainable Practices Among Small Businesses

FinTech’s Green Revolution: Nurturing Sustainable Practices Among Small Businesses

In the contemporary global business environment, there is an imperative for environmental sustainability, triggering a significant shift towards eco-friendly practices. Small businesses, acknowledged as vital contributors to global economies, are increasingly recognizing the critical need to embrace sustainable trade practices. Fintech has emerged as a crucial catalyst, motivating and supporting these enterprises on their path towards environmental responsibility through sustainable trade finance.

The impact of fintech in the realm of sustainable trade finance is extensive and diverse. At its core, fintech leverages digital solutions and innovative technologies to overhaul traditionally cumbersome processes associated with international trade. The era of paperwork-intensive documentation is gradually yielding to efficient digital alternatives, substantially reducing the environmental footprint linked to excessive printing and transportation. Furthermore, fintech introduces smart contracts and blockchain technology, elevating transparency and traceability within supply chains—integral components of sustainable trade practices providing businesses with a clear and immutable record of transactions.

Small businesses can leverage blockchain technology to establish transparent and traceable supply chains, ensuring ethical sourcing and aiding in the identification and elimination of unsustainable practices. Fintech companies exemplify this by using blockchain to trace product origins, providing consumers with detailed information about the environmental impact of their purchases.

Fintech’s data analytics capabilities continue to be instrumental in assessing and mitigating risks associated with sustainable trade practices. Through the analysis of various factors such as a supplier’s environmental impact and compliance with eco-friendly standards, fintech platforms empower small businesses to make informed decisions. This not only reduces the risk of negative environmental consequences but also enhances the overall sustainability of the supply chain.

Automated compliance monitoring by fintech solutions remains particularly beneficial for small enterprises, especially when they lack manpower to manually track evolving environmental regulations. These solutions ensure businesses stay compliant, contributing to the overall sustainability agenda.

On the financial frontier, fintech introduces alternative models seamlessly aligned with sustainability goals. Crowdfunding platforms, peer-to-peer lending and blockchain-based financing democratize access to funds for small businesses engaged in eco-friendly initiatives. This transformative shift not only diversifies funding sources but also empowers environmentally conscious investors to actively contribute to sustainable trade practices, thereby fostering a more inclusive financial ecosystem.

Fintech, by establishing a marketplace for green financing, significantly broadens access to capital for initiatives prioritizing environmental considerations. Beyond just green lending, fintech has democratically opened up sustainable investment opportunities. Green finance, a pivotal aspect of this transformative landscape, is gaining increasing traction, encompassing a spectrum of financial products and services expressly designed to support environmentally sustainable projects.

Renowned for their agility and adaptability, small businesses are emerging as trailblazers in adopting sustainable trade practices with the pivotal support of fintech. The operational efficiency facilitated by fintech in trade processes seamlessly translates into cost savings for these businesses. The reduction in paperwork, accelerated transaction processes and optimized supply chain management all contribute to lowering operational costs, empowering businesses to allocate resources towards sustainable initiatives without jeopardizing their financial stability.

Beyond individual businesses, the impact of fintech on sustainable trade practices resonates across the global landscape. The digitization of trade processes not only enhances efficiency but also facilitates cross-border transactions, enabling businesses to engage in international trade more seamlessly. This increased connectivity opens up new opportunities for small businesses to participate in global value chains, fostering a more interconnected and collaborative approach to sustainable trade.

In the context of fostering sustainable trade finance, the United Arab Emirates (UAE) stands out as a region actively embracing innovative fintech practices. Initiatives such as the Sustainable Fintech Pledge, aimed at integrating sustainability principles into the operations of fintech companies, contribute to a more resilient and prosperous future. Spearheaded by the UAE Ministry of Climate Change and Environment (MOCCAE) and the Middle East and North Africa Fintech Association (MFTA), these initiatives underscore the commitment to integrating sustainability into the fintech landscape.

The Sustainable Fintech Pledge encourages fintech companies to embed eco-friendly practices into their operations. Major financial hubs in the UAE, including Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), have pledged their commitment to sustainability through this initiative. This pledge serves as a powerful testament to the UAE’s dedication to aligning fintech operations with broader sustainability goals. Additionally, the UAE government provides financial incentives to companies aligning with eco-friendly practices. Tax exemptions, grants and other forms of financial support create an environment conducive to the development and implementation of eco-friendly solutions.

In conclusion, fintech is emerging as a key driver in promoting eco-friendly practices among small businesses engaged in international trade. Its transformative impact extends from streamlining processes and enhancing transparency to introducing alternative financing models that align with sustainability goals. Small businesses, leveraging the agility provided by fintech, are becoming pioneers in adopting sustainable trade practices. On a global scale, the integration of fintech in trade processes is fostering a more interconnected and collaborative approach to sustainable trade. Challenges notwithstanding, the momentum towards sustainable trade finance facilitated by fintech is undeniable, offering a promising trajectory for a more responsible and environmentally conscious global economy. As small businesses increasingly embrace these innovative solutions, the stage is set for a global transformation where trade and technology converge to build a more sustainable and resilient world.


Note: The above article can also be found on pages 63 to 65 in the online magazine of Intelligence Fin.Tech here.


Related Articles

Revolutionizing Trade Finance with Tech, Collaborations & SME Empowerment

BY Triterras
In an exclusive interview with Dubai Diaries on pages 18 to 20, Ashish shares his thoughts on harnessing new technologies (AI, ML), enhancing user experience of our blockchain platform, forging of strategic partnerships to broaden our global presence, prioritizing client data protection via regulatory compliance, and on how Triterras addresses a key issue that SMEs face in the UAE - impeded access to vital trade finance support which stunts their business growth.

Triterras Announces Collaboration with Card Cutters

BY Triterras
The collaboration agreement with Card Cutters will allow Triterras to directly promote its end-to-end digital lending services to their clients in the UAE; this initiative is a part of Triterras’ larger strategy to partner similar e-commerce and point-of-sale (POS) platform operators to provide such comprehensive financing solutions.

How blockchain is reshaping UAE trade

BY Triterras
Ashish Srivastava, Triterras' COO shares with Edge Middle East on how embracing fintech solutions which are based on blockchain, can bring numerous benefits to businesses such as having access to affordable financing options, enhanced transparency throughout the entire supply chain, being able to tap into a growing ecosystem that supports innovation and entrepreneurship, just to name a few.

Invoice Bazaar collaborates with Cari for financing solutions to Restaurants

BY Triterras
The strategic alliance seeks to introduce Invoice Bazaar’s comprehensive financial solutions to restaurants affiliated with Cari's food delivery platform in the UAE, which will allow them to manage cash flow more effectively, increase their promotional spending on the Cari platform, attract more customers and to stay ahead of their competitors.

How Embedded Finance Transforms Supply Chains, Fuels Unprecedented Growth

BY Triterras
A trailblazer in global finance, Triterras is rewriting the script for UAE's business landscape. Dive into the groundbreaking insights of Vinay Kapoor, our EVP at Triterras, as he shares with Techitup Middle East, a Dubai-based interactive media and content publishing platform for technology and business, on the transformative power of Embedded Finance and how it is reshaping the way businesses operate.

Triterras Collaborates with Oman-based Mamun

BY Triterras
Our strategic alliance with Mamun will allow us to provide short-term lending solution to MSMEs and white-label Kratos, our trade finance platform to the banks in the Sultanate of Oman. We will also be introducing Mamun's direct debit payment technology solution to help ease the handling of business transactions in the UAE.

Revolutionizing Trade Finance: Visionary Dive into the FinTech Landscape

BY Triterras
Srinivas Koneru, Chairman & Chief Executive Officer of Triterras, shares in an exclusive conversation with Dubai Diaries, his transformative vision on how the industry is poised to revolutionize small and medium supply chain financing and offers insights into Triterras’ pivotal role in this financial evolution.

How SMEs can navigate Trade Finance challenges in the UAE

BY Triterras
The backbone of the UAE's economy, SMEs fosters innovation, job creation and overall economic growth. Yet they face challenges in accessing trade finance which hinders their potential impact on the UAE's economic prosperity. To learn how SMEs can work around these challenges, read our article in Dubai Diaries here.

World Trade Board launches plan to empower SMEs through trade and finance

MSMEs make up around 90% of businesses globally, but accounted for just 23% of applications for trade finance in 2020. Despite their low representation, these smaller firms made up 40% of rejected trade finance applications. This mismatch between demand for and supply of trade financing known as the trade finance gap, is growing rapidly - from an estimated $1.5 trillion in 2018 to $2 trillion in 2022, and shows no signs of slowing.

The Changing Face of Supply Chain Finance: New Corridors & New Techniques

BY Triterras
Watch Marina Narganes, our Triterras' Head of Distribution & Sales Strategy in action, as she speaks alongside industry experts at the ITFA Conference 2023.

Trade Finance: An Expanding Opportunity For Institutional Investors

BY Cambridge Associates LLC
Trade finance offers a differentiated combination of credit and duration risks, liquidity profile that can complement other portfolio allocations in fixed income and increase diversification. Discussions in the broader ecosystem of trade finance have consistently pointed towards a greater role for institutional investors to provide trade credit through specialized funds, which is expected to expand greatly in the coming years.

Triterras’ e-commerce financing accelerates growth of platform operators & their MSME clients

BY Triterras
With Triterras' E-commerce Receivables Financing solution for the platform's MSME clients, operators and aggregators can now promote a critical solution to a key business challenge that their clients face, create and retain their loyalty, allow clients to increase their spending on platform promotions to boost ranking and staying ahead of competitors.

Trade-finance data needs a centralized repository

BY Euromoney
“A centralized trade-data repository with standardized data formats, has the potential to offer significant benefits to funders, while investing in training programs for skilled professionals will be essential for making improvements in this area,” says Srinivas Koneru, Triterras' Chairman & Chief Executive, speaking to Euromoney. "The trade-finance industry should focus on collaborations to overcome the current limitations of trade-data analysis."

Empowering E-Commerce Microlending: Navigating Opportunities & Challenges

BY Triterras
The rise in online shopping and digital transactions are driving demand for e-commerce and microlending services. Srinivas Koneru, our Triterras' Chairman and CEO discusses with Asia Business Outlook on what it takes to meet the evolving needs of today's consumers.

Trade financing gap is restricting growth and negatively impacting SDGs

In CNBC-TV18's interview with Steven Beck, Head of Trade Finance at Asian Development Bank (ADB), a primary reason for the trade financing gap getting larger is inflation. The global economy is expected to grow at less than 3% and international trade volumes are also expected to fall to less than 1% after a decent growth last year.

The case for a more transparent & liquid market for Trade Finance assets

BY J.P. Morgan
Increased regulation and growth in world trade is sparking a need for trade financing, and there is growing interest in transferring risk from banks to non-traditional sources of capital, such as investment funds with substantial capital and liquidity.

Triterras announces the appointment of Vinay Kapoor to Executive Vice President

BY Triterras
“Triterras is on an exciting and pivotal journey as we endeavor to deliver on our promise to meet the growing demands for financial and business services in the Middle East. Vinay, an extremely well-respected and trusted industry leader with great stature in the business community, will be a great complement to our Leadership team.” said Srinivas Koneru, Chairman & CEO.

New hires to serve growing pipeline of funding opportunities

BY Triterras
Reporting to the Head of Distribution & Sales Strategy, the new hires will engage with institutional investors who are interested in deploying capital for cross-border trade finance opportunities. This comes on the back of Triterras' expansion of its lending portfolio in both emerging and developed markets.

Private Capital Investors in Trade Finance: An Asset Manager’s Perspective

Private capital within trade finance activity comes from a diverse range of participants. Given the widening global trade finance gap, trade finance has increasingly been attracting private capital across the credit spectrum and a range of participation formats. However, there are several factors which have hampered its development as a mainstream subset of private credit.

The transaction banking revolution has only just begun

BY Euromoney
Congratulations to our Triterras’ Chief Commercial Officer (CCO) Ashish Srivastava, who was interviewed and quoted in the article “The Transaction Banking Revolution has Only Just Begun” by Euromoney. Ashish was featured along with C-Suite Executives from Citi, HSBC, Deutsche Bank and Standard Chartered Bank, among others.
Scroll to Top
Scroll to Top Skip to content