In this Q&A, Dr Amir Zarifnia, CEO and Founder of Kixy, shares why fintechs can no longer afford to deprioritise these initiatives and how companies can take meaningful action to stay relevant in a shifting landscape.

Why do you believe CSR is especially important for fintech companies?

CSR has become crucial, particularly because younger demographics – Gen Z and Millennials – value social and environmental responsibility greatly. Studies show that 94% of Gen Z believe companies should address societal and environmental issues, and more than nine out of ten Millennials would switch brands to support causes they care about. Fintechs, which naturally attract these younger customers, are uniquely positioned to capitalise on this shift but haven’t fully embraced it yet.

What impact does strong CSR have on consumer choices, especially among younger generations?

Younger consumers don't just appreciate companies with strong CSR – they actively prioritise them. Research indicates that 73% of Millennials are willing to pay more for products and services from companies dedicated to positive ESG practices. Additionally, 81% of Millennials expect businesses to publicly commit to CSR goals, meaning these efforts are not just beneficial but becoming essential.

Given this clear demand, why aren't more fintechs leading in CSR and ESG initiatives?

It’s a great question. While fintech is closely associated with younger generations, many companies have not yet moved beyond superficial engagement or short-lived campaigns like the 'fintech for good' movement. True impact requires embedding ESG and CSR principles deeply into the company's core strategies and values, something that fintechs have not historically prioritised.

How should fintechs integrate genuine ESG and CSR actions into their businesses?

Authenticity and strategic focus are key. Fintechs must prioritise ESG and CSR from the outset, embedding them into their business models rather than treating them as secondary or PR-driven concerns. This involves measuring success not only in financial metrics but also in the tangible positive impacts they achieve within their communities and broader societal contexts.

What practical advice do you have for fintech companies seeking to genuinely engage with CSR and ESG?

Forming strategic, community-oriented partnerships with reputable organisations is crucial. Such partnerships ensure fintechs contribute to meaningful, measurable outcomes. Additionally, fintechs must avoid superficial or performative CSR – this is quickly recognised by younger consumers and can seriously damage brand trust.

What risks do fintechs face if they fail to adapt to these changing expectations?

Companies that fail to align with younger consumers' values risk alienating their primary audience. Younger generations now represent a significant portion of fintech’s customer base and are becoming major revenue drivers. Ignoring their expectations around social responsibility isn’t just short-sighted – it could significantly impact a company's long-term viability.

How is Kixy responding to these shifting demands?

At Kixy, we recognise and embrace the necessity of prioritising ESG and CSR. We're actively integrating these values into our strategic plans, forming partnerships, and creating genuine, impactful initiatives. Our goal is not merely to meet the expectations of younger consumers but to lead the fintech sector into a new, more responsible era.

Our forthcoming app will offer a social-first financial-led solution for both personal and business users, including accounts, payments, transfers, and innovative community orientated features designed to enhance connectivity and engagement. Upon launch, the integrated, engaging financial platform will provide an exciting and socially-minded way to manage finances.

In summary, what future do you envision for fintech regarding CSR and ESG?

We’re at the start of a significant shift within fintech. Companies that genuinely prioritise ESG and CSR will thrive, attracting loyalty and trust from younger consumers. Those that don’t adapt risk being left behind. At Kixy, we’re excited to help drive this essential evolution