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Others, however, lamented the decision, citing the move as a problematic barrier to
entry for those who rely on cash for day-to-day purchases. The policy, they argued,
would discriminate against customers lacking access to credit cards or smartphones. In
response to the heated backlash, Sweetgreen announced in April 2019 that it would be
accepting legal tender in its stores again.
The Sweetgreen debacle is just one example of a fissure within the field of fintech—
financial technology—between those who extol its virtues as a potential equalizer of the
masses and those who snub it as just another launchpad for the rich to get richer.
Both sides present thought-provoking arguments. Critics of fintech suggest that
technologies like cryptocurrencies—which require electronic hardware and internet
access to mine, purchase, and use—propagate socioeconomic biases by limiting their
accessibility to tech-savvy (and, typically, already affluent) users. A 2018 New York
Times piece notably cited a stat from howmuch.net that around 95 percent of Bitcoin
wealth is in the hands of just four percent of cryptocurrency owners.
On the other hand, proponents of fintech tout its implications for social good. This
side argues that blockchain and other emerging platforms can bolster charitable causes.
This use case holds water: In 2017, an anonymous donor created an experimental philanthropic
project called The Pineapple Fund to funnel $55 million in Bitcoin earnings to
more than 60 charities. Nonprofits like GiveWell have also updated their donations-processing
systems to be able to accept cryptocurrencies.
While there are more than just two sides of the coin, there are clear implications for
fintech as it pertains to social good.
FINTECH FOR SOCIAL GOOD
One concrete way fintech may contribute to social initiatives is by updating antiquated
financial infrastructures. The concept of “open banking,” for instance, which encourages
development and integration of third-party APIs into big banks’ products, professes to
open doors for previously underserved populations. Many large institutions are working
alongside fintechs to better serve customers: JPMorgan Chase & Co., for example,
has backed startups such as EverSafe, a tool that uses intelligent data analysis to help
seniors avoid scams and, in turn, improve their financial literacy.
Mobile transaction is another trend making waves in the fintech sector. Despite
Sweetgreen’s failed experiment with going cashless in the U.S., on a global scale, mobile
payments are prolific. In developing countries, phone-based banking can be especially
impactful, as more than two-thirds of people in these areas lack access to a traditional
bank account. In Kenya, up to 96 percent of the population uses the Vodafone-sponsored
platform M-Pesa to conduct mobile transactions. In Mexico, a program called CoDi is
helping unbanked citizens achieve greater financial autonomy.