For millions of people, financial exclusion is still a huge challenge. Done right, fintech has the power to break down these barriers and create real opportunities. But with so many companies claiming to drive positive change, how can we tell the real innovators from those just chasing profits?

Gregor Mowat, Co-CEO and Co-Founder of Loqbox, the UK’s leading credit-building fintech, shares his insights on what really makes a fintech “good,” the challenges of doing the right thing, and the fintech trends that could make a difference for SMEs in 2025.

What does “fintech for good” actually mean?

It’s not just about clever apps or turning a profit. It’s about solving real financial problems that hold people and businesses back. A true fintech for good delivers measurable impact, whether that’s helping someone improve their credit score, giving small businesses access to fairer funding, or creating tools that support long-term financial stability.

For SMEs, this could mean alternative lenders offering more flexible loan terms, platforms that make it easier to manage cash flow, or fintech solutions that help businesses get paid faster. The real test is whether a fintech can prove its impact – whether it’s helping a business secure funding when a traditional bank says no or giving entrepreneurs the financial tools they need to grow with confidence. The best fintechs don’t just talk about change; they make it happen.

What are the challenges of making a real impact?

Reaching the people who need financial support the most is a major hurdle. Many underserved individuals and businesses face additional barriers, from language differences to limited financial literacy or lack of collateral. Fintech solutions designed to help must go beyond just offering a product; they need to truly understand these challenges and create meaningful solutions that break down these barriers, rather than simply working around them.

For fintechs trying to create meaningful change, another challenge is often scalability. A product that works brilliantly for a niche audience doesn’t always translate seamlessly to a larger market, especially when trying to reach millions without losing the personal touch that made it successful in the first place. Growing responsibly means ensuring that as a business expands, it still serves customers in a way that feels tailored and relevant.

Another issue is long-term impact. A quick loan might help a business through a rough patch, but sustainable financial health requires more than one-off fixes. For fintechs to drive real progress, they need to embed ongoing education, better financial tools, and long-term support into their offerings, helping SMEs not just survive but thrive over time.

Should fintechs be responsible for driving positive change?

There’s no question that fintechs are uniquely placed to challenge traditional finance and make it work better for individuals and businesses alike. While not every fintech can solve global financial inequality, companies in this space have a responsibility to build products that are ethical, responsible, and genuinely useful.

The impact of fintech on SMEs, in particular, is huge. With many small businesses struggling with late payments, limited access to credit, and financial admin that eats into valuable time, fintech solutions have the potential to transform the way businesses manage money, plan for the future, and grow.

Faster and fairer lending, for example, is already changing the landscape for SMEs that have historically been overlooked by traditional banks. By using AI and open banking, alternative lenders are making it easier for businesses to access the funding they need, when they need it, without the usual red tape. Meanwhile, smarter credit-building tools are helping businesses establish financial credibility in new ways, whether by reporting rent payments to credit agencies or creating alternative pathways to a strong credit profile.

What’s next for ‘fintech for good’?

The future of fintech for good is about harnessing innovation to create financial solutions that not only empower individuals and businesses but also have a positive societal impact. For SMEs, this means a shift toward integrated, embedded financial tools that streamline processes like transactions, payroll, and cash flow management, providing seamless and intuitive user experiences. These solutions will focus on reducing friction, improving access to capital, and offering more personalised financial services.

The key to success will lie in the ability to deliver financial technology that meets the unique needs of underserved communities, fosters financial inclusion, and offers businesses greater autonomy over their financial decision-making. In the coming years, fintechs that prioritise these values will not just drive profitability but also contribute to the long-term sustainability of SMEs by addressing challenges such as access to credit, financial literacy, and regulatory compliance.

This year, the companies leading the way in fintech for good will be those that blend cutting-edge technology with a clear, mission-driven focus on improving financial resilience. This will create a ripple effect, not only improving the economic wellbeing of SMEs but also driving positive social and environmental change on a bigger scale.