Temenos releases ESG investing-as-a-service for banks

Temenos has released an ESG investing-as-a-service to help banks and wealth managers meet the demand for sustainable investing.

Running on Temenos Banking Cloud, or any cloud or on-premise environment, the service accelerates the time-to-market for ESG compliant products and reporting, while reducing the cost of development.

This new solution combines Temenos front office, market data management and digital capabilities, including filtering, scoring and modelling techniques, with external data feeds from multiple providers to deliver a complete end-to-end service.

Through the new service, banks can quickly build investment products and digital experiences that allow investors to create a portfolio that matches their values.

It provides pre-integration to third-party data vendors, with easy-to-understand ratings to evaluate hundreds of ESG factors. These include environmental factors such as carbon footprint and water usage, social factors such as diversity and gender equality, and governance factors such as executive compensation.

ESG is becoming increasingly important, with research from Bloomberg claiming global ESG assets are on track to exceed $53trn by 2025, which will represent over a third of $140.5trn in projected total assets under management.

Temenos product director – wealth Alexandre Duret said, “At Temenos, our purpose is to power a world of banking that creates opportunities for everyone. With the new ESG Investing service, we will help private banks and wealth managers to become compliant, and their customers invest with a purpose.

“Available as a service on our open platform for composable banking, it provides a fast track for our banking clients to launch innovative ESG investment products underpinned by robust, compliant processes, including new MiFID rules applicable in the EU from August 2022.”

ESG has become a major trend of the past couple years. Earlier this week, FinTech Global explored whether 2022 will be the year it really explodes in the market.

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