In the current times of increasing interest rates, financial institutions might be enjoying short-term profitability. But these are not sustainable measures. The economic cycle will turn and alongside technology advancements, there is little to expect for growth of traditional finance stated Bahaa Abdul Hussein.
Green Finance
The greatest opportunity right now is green finance. Green here simply translates to environmentally friendly categories. Green finance is not just a shimmering name that is trending right now, it is soon going to be a mandate in many ways.
Electric Vehicles
Looking from the consumer point-of-view, the most rising sector is of electric vehicles. There is a lot of potential of exponential growth of this sector – something which Tesla has also now and again focused on. There is a lot of opportunities for finance in this sector. Starting from the basic charging stations – which are, so far, very less in numbers. As the demand and regulations support electric vehicles, the need for charging stations also rise. This eventually shows that financing charging stations for both commercial and residential use can be a great growth perspective. Given the calculations and logistics, experts foresee more commercial charging stations as compared to homeowners setting up charging systems.
Green-embedded Finance
Another area to pay attention to is green-embedded finance. The term might seem tricky to some people, but it is simply a means to reach the greener side of things. It can be seen as a learning mechanism for people to be more informed about electric vehicles functioning, managing of charging systems and more.
Green Mortgages
With the education follows adjustment – once an individual knows the how-to of green choices, they might need to make altercations to their home accordingly. Here comes the opportunity of green mortgages. Many governments are providing subsidies to green choices and paving a butterfly effect for future green mortgages.
Green Deposits
Alongside such changes, an emerging concept of “green deposits” is something to cash on for the banks. These are focused deposits that do not just encourage environmentally friendly behaviour but provide an intentional savings product to the consumer.
With the new “woke” generation, such deposits also hold potential for enormous growth. So, banks might be enjoying on the current wave of interest rates but if they want to maintain the flight – they need to move on the trending side. Green finance is the finance of future. Although it might take some time to play-out, it holds great potential!
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