A classification of technology first used in the UK by Baroness Bowles of Berkhamsted in June 2020 as an introduction to the framework of recognising and categorising technologies based on their core objective such as Fintech, Agritech, Insuretech, Wealthtech and Regtech for example. Soctech reflects a growing emphasis on ethical and societal dimensions in technological progress. These classifications draw a parallel with terminology shifts in the tech sector, such as the coining of "unicorn" by Aileen Lee^[1] in 2013 to describe a fintech startup valued at over $1 billion, underscoring a broader trend of assigning unique labels to emerging fields and ranking them by classification. Unicorns will no longer be exclusive to fintech as the soctech sector and all its underlying classifications will see emerging unicorns in their own right, in their own classification

Technologies classified as Soctech adhere to specific criteria:

• Positive Social Impact: Soctech technologies must demonstrate immediate and direct beneficial impacts on society, such as improving access to education, financial inclusion, healthcare, or environmental sustainability.
• No Adverse Effects: Soctech technologies aim to avoid any harmful or negative side effects in the delivery of the impact.
• Immediate Benefits: The impact should be observable in the short term, providing measurable improvements for individuals or communities.

Soctech is distinct from other categories like Fintech, which focuses primarily on financial innovation, by its focus on social outcomes. While Fintech aims at improving financial services, Soctech encompasses technologies across various domains that generate positive societal outcomes. Technologies with dual objectives, such as Fintech solutions that enhance financial inclusion, may fall under both categories. However, not all Soctech technologies are limited to the financial sector, and its scope includes any technology that drives societal improvement.

Several types of technologies fall under the Soctech classification:

• EdTech for Underserved Communities: Digital learning platforms that provide access to education for students in remote or resource-limited areas.
• HealthTech for Affordable Healthcare: Mobile applications and devices that deliver affordable, accessible healthcare in developing regions.

• Environmental Technology (EnviroTech): Innovations like clean energy, carbon capture, or water purification systems that offer direct environmental benefits.
• Community and Civic Tech: Platforms that promote civic engagement, government transparency, and community-driven solutions to social issues.
• Employee Ownership Tech: Platforms that deliver business ownership transitions to fully inclusive, income-based, employee ownership.

The emergence of Soctech highlights a shift in the tech industry’s focus from purely profit-driven innovation to socially responsible solutions. By categorising socially beneficial technologies under Soctech, the framework emphasizes the role of technology in addressing global challenges like inequality, climate change, and access to basic human needs. This classification has also attracted attention from social impact investors interested in projects that yield both financial and social returns, contributing to a more sustainable technological landscape.

Despite its positive vision, Soctech faces criticism for the challenges involved in defining and measuring “immediate” and “positive” impacts. There is ongoing debate over what constitutes an adverse effect and how companies can be held accountable under the Soctech classification.

Additionally, proving the absence of negative consequences can be challenging, especially within complex social systems, making it difficult for some innovations to meet the classification’s criteria. Proponents argue that establishing clear standards for Soctech encourages a higher bar for technology development, promoting solutions that actively contribute to social good.

Soctech represents a new category in technology classifications focused on utilising innovation for societal benefit. By emphasising positive social impact and minimising harm, Soctech aims to guide technological development toward ethical and equitable solutions. As global challenges continue to influence priorities in the tech world, the concept of Soctech is likely to become increasingly relevant in the future of AI and technology.