What is Green Fintech and how does it work?

UK Green FinTech: Momentum, Gaps, and the Road Ahead Green FinTech is rapidly gaining traction among entrepreneurs and investors. As climate challenges intensify, financial and digital innovation must become central to driving sustainable investment. In August 2025, the Swiss-based Green FinTech Network published its “Green FinTech – Theory of Change” report, offering a roadmap for global impact. It highlights five levers essential for scale: measurement and reporting, incentives, regulation, risk management, and aligning financial flows with net-zero goals. UK Leads the Way The UK, alongside Singapore and the EU, is at the forefront of green fintech through progressive regulation, active investment, and a vibrant ecosystem. There are an estimated 50–60 UK start-ups in this space, with players in carbon offsetting, green lending, sustainable payments, and regulatory compliance. Government backing remains strong via the FCA’s Green FinTech Challenge, the Digital Sandbox, and funds such as the Clean Growth Fund and Energy Entrepreneurs Fund. Evolving sustainability standards and transition frameworks further reinforce investor confidence. The InsurTech Connection Green fintech and InsurTech are increasingly linked: ·      AI in Risk & Underwriting: InsurTech use AI for climate risk modelling; green fintech's for ESG scoring. FCA guidance ensures transparent, explainable models across both. ·      Regulatory Shifts: HM Treasury’s plan to merge the Payment Systems Regulator into the FCA streamlines oversight. As payment rails embed carbon data, fintech transaction insights inform insurtech products like usage-based, low-carbon insurance. ·      Data Infrastructure: Project Keystone (BoE/BIS) is adopting ISO 20022 payment standards to enrich transaction data. FinTech's gain better ESG reporting, while InsurTech access environmental data for pricing. Innovative UK InsurTech ·      Peppercorn AI: Conversational AI agent boosting insurer profitability and scale. ·      Nettle: AI-driven underwriting risk assessment (founded 2024). ·      Testudo: AI underwriting platform in collaboration with Lloyd’s of London. Key Gaps ·      Standardisation & Data: Fragmented metrics hinder comparability. ·      Regulatory Clarity: Incentives and tax policy need consistency. ·      Risk Pooling: £5.5bn in climate-related losses (2024) show the need for adaptation. ·      Access & Inclusion: Green finance must reach vulnerable groups. ·      Funding: Start-ups need larger deal sizes and stronger scale-up support. Next Steps Unlocking the UK’s full potential requires better policy alignment, standard-setting, and stronger risk-sharing. Expanding access, supporting scale-up funding, and driving purpose-led innovation will help the UK consolidate leadership and set a global benchmark in green fintech. #GreenFinTech #InsurTech #ClimateFinance #SustainableFinance #DigitalInnovation #UKTech #ImpactInvesting

🌍 2025: Investment, Fintech & ESG – The Future is Already Here Over the last decade, “ESG” — Environmental, Social, Governance — has moved from a buzzword to the very backbone of investment decisions. And in 2025, it’s clear: finance without sustainability is no longer finance at all. 🔑 My Personal Lens as a Expert Whether it’s fundraising, portfolio building, or designing new business models, the biggest lesson I’ve carried is simple yet powerful: data transparency and authentic ESG metrics make or break trust. Today’s fintech startups are weaving ESG into the core of their platforms — from AI-powered transaction tracing to blockchain-enabled green audits. These innovations not only stop “greenwashing” but also give investors confidence that their money fuels genuine impact. 📊 Where ESG Meets Fintech: Real Opportunities Green Finance: Investors track carbon emissions & energy use in real-time before deploying funds. Digital Banking & Smart Portfolios: New-age platforms prioritize ESG-certified companies for lending & loans. Sustainable Investment Products: Climate bonds, ESG-focused mutual funds, and embedded fintech tools are now mainstream. 🔍 Deep Dive: The Tech Layer AI, Big Data, and Blockchain are making ESG reporting transparent, automated, and fraud-proof. In digital-first economies, ESG + fintech is expanding financial services to every layer of society. Golden Rule: Stronger ESG ratings → stronger investor confidence → bigger investment flows. ⚖️ My Go-To Actions (Risks & Rewards) ✔️ Prioritize ESG-driven fintech companies with consistent growth. ✔️ Demand third-party ESG audits for reliable data. ✔️ Balance portfolios with ESG thematic funds, climate bonds, and digital-first finance products. My Thought 🤔Fintech, ESG, and investment today are not just at a crossroads — they are at the same table, writing the future of finance. 🔎This isn’t about trends. It’s about responsibility, transparency, and impact becoming the new definition of wealth. 👉 What’s your take? Have you already integrated ESG into your fintech or investment strategy? Let’s share perspectives — because the future is collaborative. #Investment #ESG #Fintech #GreenFinance #DigitalBanking #SustainableFuture #PersonalExperience

How can finance and technology work together to combat climate change? 🌍 A new report from the Green Fintech Network offers a clear roadmap. Titled "The Green Fintech Theory of Change," this document outlines how fintech can drive the green transition, from leveraging new financial solutions to building sustainable infrastructure. It’s a must-read for anyone looking to understand the future of sustainable finance. Read more: https://lnkd.in/eeNs-xDH #Fintech #SustainableFinance #ClimateChange #GreenTech #ESG

AI with Purpose & Mission #7: But where does the money come from? One of the biggest barriers to a just energy transition isn’t technology—it’s capital flow. Solar systems exist. Clean cookstoves exist. But financing doesn’t reliably reach the last mile, often because it’s unclear where funds go or whether they truly deliver their intended impact. People are often wary of for-profit "impact investing” and question if it can truly serve the most vulnerable, or if the profit motive ultimately dilutes the mission. So how do you fund the mission? Nithio steps into this gap. They use an AI-powered risk analytics engine to de-risk these investments and channel capital into local off-grid energy distributors. By blending resources from commercial, development, and philanthropic organisations, they wrap this intelligence into proven financial products like Pay-As-You-Go (PAYGO). Now, they're taking it a step further by building an automated lending platform to cut transaction costs and time by 50%, making it viable to fund smaller, crucial enterprises. The outcomes are undeniable: • 494,950 people with improved energy access that is resilient to climate change and improves food and water security • 1,776,719 metric tons of CO₂e emissions avoided including pollution at home that cost nearly 4 million lives • 148,038 clean energy systems deployed • 38% of system purchasers were women • 64% of their portfolio is composed of smaller, local companies (Tier 2/3 borrowers) As someone who’s spent much of my career in Fintech, this resonates deeply. The AI powers an engine to standardise credit risk assessments and build the rails for climate lending. The key product lesson here is to platformise trust. For me, this is where fintech meets real climate impact. Combine AI, smart data, and the right business model, and you can create one of the strongest levers we have for systemic change. Nithio is proving it’s the way to scale inclusion and climate resilience. #AIforGood #ClimateTech #Fintech #ImpactInvesting #ProductStrategy

💡Betterment, a U.S.-based digital investment advisor, has operated since 2008 and today manages over $56 billion in assets. The company serves nearly one million customers and has made investment management simple and accessible by combining advanced algorithms with human advisors. Its main products and services include: • Automated investment management • Tax optimization • High-yield retirement and cash accounts • Diversified portfolios, including ESG and cryptocurrencies Betterment takes client capital, manages it, and optimizes investments using smart tools and advisory services. With over 72,000 reviews and a 4.8/5 rating on app stores, the company is a prime example of success in combining technology, transparency, and user experience. Key lesson: In fintech, technology is important, but trust and user experience create long-term success.

The Future of Finance Won't Be Built on Innovation Alone — Here's What It Will Depend On Instead https://drumup.io/s/pWzbbs #ecosystems #innovation #fintech #businessleadership #enterpreneurship

To our Network in the UK & Ireland Venture & Prosper is working with a multi-billion-dollar global technology giant. It has its own investment and banking arm. It's actively looking for investments in Clean Technology, yet this can derive from Energy, climatech, ESG-related technologies & IP I classify this as strategic 'smart money' as they can not only help with financial lending facilities, but depending on the technology & markets in question, they can also be a potential partner in supporting infrastructure and GTM sales growth channels globally SPV lending within a Managed Service Solution is desirable to them as long as the counterparty risk that is paying for the said service is creditworthy They seek a form of minimum payment guarantees or step-in rights, as expected, or guaranteed payment to cover the financing costs. There can be performance risk taken on the equipment, if hardware-related, so if it does not work as detailed, the customer doesn’t pay. Note that the assessment of the equipment (if hardware-related) and any residual value becomes very detailed, but if it is partly/mostly badged, or a part of the provider's solution in question here, then this helps. The Managed Service Provider needs to have experience in providing said service and/or technology, ie track record and credible management teams Debt Service Reserves can be used to support risk, and similarly, 100% funding can be available for strong counterparty/payment certainty risk. Clean Technology solutions, process equipment, and emerging technology which have gone through a trial stage are considered, especially if the provider in question here can use or sell the solution also through its GTM channels General asset finance facility also available – software/tech/ etc, or combination. Potentially as a 'as a service' wrapper or white label The above is not generally aimed at startups, more atuned to a mature company or scale-up seeking growth or new market entry. That said, if the technology is strong, has mass market use cases and demand, yet is post-MVP with strong IP, it can be considered. UK & Ireland focus initially, but options beyond Typical ticket price, circa £1 Million to £10 million range The above facilities could complement, or simply buy valuable time to market, versus an equity capital raise If you have any interest in the above, feel free to reach out

Green Fintech Network publishes 'Theory of Change' roadmap - Finextra Research: The paper provides frameworks on how financial solutions can work against climate change, what green fintech can do to drive sustainable solutions, ... #finpeform #fintech

Main Set Industry Insights | August 2025 Fintech Funding Roundup 🔎 Trends 📈 🔵 Seed & Early eased MoM Seed –35% to ~$54m / 17 deals; Early –18% to ~$766m / 23 investments) as US & UK/EU activity cooled, while RoW held up better (Seed up, Early modestly higher). 🔵 Late-stage retreated most significantly (–95% to ~$97m / 2 deals) after July’s surge. Standout Investment Rounds 👇 1️⃣ Rillet | AI-driven ERP platform automating accounting & finance ↳ - ~$70m Series B 2️⃣ IVIX | Analytics & intelligence tools that detect hidden economic activity ↳ ~$60m Series B 3️⃣ Human Interest | Digital 401(k) & retirement benefits provider ↳ ~$50m Series E 4️⃣ Alaan الآن | Corporate card & spend-management platform ↳ ~$48m Series A 5️⃣ GeoWealth | Wealthtech platform powering RIAs & advisors ↳ ~$38m Series C 💡 Key Takeaway Equity rounds cooled across stages in August, especially late-stage, while RoW showed relative resilience at Seed/Early stages. Investor activity in August was concentrated in Wealthtech & the broader “office-of-the-CFO” tech stack. ↳ Main Set: this unevenly distributed & dynamic stage & geo abritage supports the rationale behind our multi-stage multi-geo investment strategy, focusing on price:value dislocation & inherently strong unit economic engines as opposed to boxing ourselves in when externalities can limit attractive investment opportunities over certain periods. 💡 Please reach out to learn more. Our door is always open. Ioto Iotov CA, CFA, CAIA | Ivan Wong | Jack Hogan | Dominique Swan

Despite market fluctuations, the UK remains a global leader in fintech investment. In 2023, the UK fintech sector attracted $5.1 billion across 409 deals, maintaining its position as a global hub for innovation. While this represents a 65% decline from 2022, the UK still outpaced India, which secured $2.5 billion across 187 deals (Innovate Finance, 2023). This demonstrates the UK's enduring appeal for investors seeking access to mature and emerging fintech opportunities. Family offices are playing an increasingly strategic role, particularly in seed and growth-stage funding rounds within fintech and life sciences sectors (Expert Market Research, 2023). Their agility and long-term investment horizons allow them to support emerging technologies, helping shape the future of financial services and digital innovation. Yet, investors must also navigate challenges such as regulatory uncertainty, evolving data privacy requirements, and intense competition for high-quality deal flow—factors that can significantly impact returns and long-term positioning. For investors navigating this dynamic landscape, understanding regional trends, emerging niches, and regulatory developments is essential. With fintech evolving rapidly, family offices and private investors can gain a competitive edge by leveraging specialised insights and advisory support. At StellarOne, we specialise in guiding investors through the evolving fintech landscape. Get in touch to explore how we can support your investment strategy: info@stellarone.biz | www.stellarone.biz