Temenos Launches ESG Investing-as-a-Service for Banks and Wealth Managers
Geneva, Switzerland–(BUSINESS WIRE)–Temenos (SIX: TEMN) today launched ESG Investing-as-a-service, helping banks and wealth managers meet the growing demand for sustainable investing. The offer was unveiled to 1,500 banking and fintech executives at Temenos Community Forum in London.
Running on Temenos Banking Cloud, any cloud or on-premises, the service accelerates time-to-market for ESG-compliant products and reports while reducing development costs. The solution combines Temenos’ front office, market data management and digital capabilities, including powerful filtering, scoring and modeling techniques, with external data feeds from multiple vendors to provide a comprehensive service of end to end.
ESG investing, also called sustainable, socially responsible or impact investing, is a way of investing in companies based on their commitment to one or more ESG factors. It represents a huge opportunity for banks and wealth management firms to drive growth and differentiate themselves to meet the increasingly sophisticated ESG needs of their clients.
According to the analysis of Bloomberg, global ESG assets are on track to surpass $53 trillion by 2025, representing more than a third of the projected $140.5 trillion in total assets under management. Global initiatives supporting this trend are also gaining momentum, such as the United Nations Global Compactthe largest sustainability initiative in the world, supported by 16,000 companies in 162 countries.
Using the Temenos ESG Investing service, banks can quickly create investment products and power sophisticated digital experiences that allow investors to choose meaningful investments and build a portfolio around their own values.
The solution provides pre-integration to third-party data providers with easy-to-understand ratings to assess hundreds of ESG factors. These include environmental factors such as carbon footprint and water use, social factors such as diversity and gender equality, and governance factors such as executive compensation.
Marc Vanvilthoven, Product Owner and Customer Journey Expert Investments, ING, said: “We have a long-standing partnership with Temenos and its wealth management solution enables us to offer our private banking clients advisory and discretionary management services. At ING, we always want to offer world-class services to our clients. Temenos ESG Investing can bring ESG-compliant products to market faster while reducing development costs and adopting standard features.
Alois Pirker, Director, Wealth Management Practice, Aite-Novarica Group, commented: “The demand from wealth managers for reliable, credible and transparent ESG data has never been greater. Aite-Novarica Group expects sustainable investing assets under management to grow 7% annually from its current level of US$35.3 trillion through 20251. Therefore, we safely expect increased efforts for more data standardization, greater demand for relevant ESG data from trusted data sources, and deeper impact reporting platforms. Temenos’ new offering, ESG Investing-as-a-Service, addresses these needs and provides wealth managers with a clear path to meet growing client demand for detailed data and transparency around their investment choices. .
Alexandre Duret, Product Director – Wealth, Temenos, said: “At Temenos, our goal is to power a world of banking that creates opportunity for everyone. With the new ESG Investing service, we will help private banks and wealth managers achieve compliance, and their clients invest with purpose. Available as a service on our open platform for composable banking, it provides our banking clients with a fast track to launch innovative ESG investment products backed by robust and compliant processes, including the new MiFID rules applicable in the world. EU from August 2022.”
Temenos has integrated sustainability into its operations, value chain and product offering, with strong ESG governance, reporting and measurable targets. The company has joined the United Nations Global Compact (UNGC) and supports the United Nations Sustainable Development Goals (SDGs). In addition to the FTSE4Good and S&P sustainability indices, Temenos also received an A- rating from the Carbon Disclosure Project (CDP) and achieved platinum recognition, placing Temenos in the top 1% as assessed by EcoVadis.
– Ends –
Temenos AG (SIX: TEMN) is the world leader in banking software. More than 3,000 banks worldwide, including 41 of the top 50 banks, trust Temenos to handle both day-to-day transactions and customer interactions for more than 1.2 billion banking customers. Temenos offers cloud-native, cloud-independent and AI-powered front office, core banking, payment and fund administration software, enabling banks to deliver seamless omnichannel customer experiences and reach operational excellence.
Temenos software has been proven to enable its top performing customers to achieve cost-to-income ratios of 26.8%, half the industry average, and returns on equity of 29%, three times the industry average. These customers also invest 51% of their IT budget in growth and innovation versus maintenance, twice the industry average, proving that banks’ IT investment adds tangible value to their business.
For more information, please visit www.temenos.com.
1 Data extracted from “ESG Data Market Dynamics Within Wealth Management” – Aite Novarica, December 2021