Corporate Social Responsibility (CSR) has been integral to businesses for years feels Bahaa Abdul Hussein. It allows them to contribute more towards their communities or for a humanitarian cause. Digital companies like neobanks are a new phenomenon which are rapidly booming. They may operate on a slightly different landscape, but they are still subjected to their share of CSR.

In the current landscape, some people are still suspicious of fintech and neobanks. CSR offers a good solution by improving their image in the public eye. At the same time, neobank inventions are helping other companies meet their CSR goals faster and better.

Understanding CSR

CSR reveals a company’s kind intentions. It gets them more closely involved with the customers they serve and increases confidence from stakeholders. Neobanks must look outside their company to see how a part of their profits can make the society better. They can contribute to causes or initiate their own. There are many other ways to fulfill CSR responsibilities.

Companies benefit from CSR in the following ways:

  • Improvement in public image
  • Enhancement of employee engagement, mood and productivity
  • More confidence from stakeholders
  • Reduced operational costs through the implementation of practices that do not hurt society

Although there are many benefits, implementation of CSR has some problems, such as:

  • Keeping track of disbursed money
  • Lack of accountability and answerability of money
  • Insufficient returns on CSR activities

Today, digitization has solved most problems related to transparency and accountability. Neobanks are at the forefront of offering such digital money management services.

Role of Neobanks in CSR

To aid banking or financial operations, neobanks design digital programs or software. Companies use these technologies to regulate their financial approach.

Neobank services benefit the CSR component of companies in many ways, such as:

Making Digital Payments

Disbursing money is no longer a time-consuming activity for corporates. App-regulated disbursal portals and mobile wallets have made money transfer very convenient.

Reducing the gap between communities

Neobanks make financial services accessible to the underdeveloped parts of the world. Even people who do not have a bank account can use digital financial services now. Earlier, rural areas had less access to money due to the lack of ATMs and banks.

Crowdfunding for causes

Customers have an easier time contributing to social causes and charities thanks to new digital technologies. They can make quick and safe payments to CSR initiatives.

Reducing operational costs

Neobank technologies reduce the need for paperwork and reduce operational costs. The process of making transactions and approving loans has become a lot faster due to digital apps and programs.

Conclusion

New digital technologies have made CSR more convenient for businesses. It is much easier to raise donations and pay vendors for different programs and events thanks to digital revolution. Thank you for your interest in Bahaa Abdul Hussein blogs. For more information, please visit www.bahaaabdulhussein.com