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Temenos Serves Up ESG Investing-as-a-Service

Banking technology provider Temenos is launching ESG Investing-as-a-service. The tool will help banks and wealth managers offer a digital experience that allows end customers to build an investment portfolio that reflects their values. The move comes amid a time of major growth for ESG investing, which is expected to exceed $53 trillion by 2025. ESG Read more…

The post Temenos Serves Up ESG Investing-as-a-Service appeared first on Finovate.

  • Banking technology provider Temenos is launching ESG Investing-as-a-service.
  • The tool will help banks and wealth managers offer a digital experience that allows end customers to build an investment portfolio that reflects their values.
  • The move comes amid a time of major growth for ESG investing, which is expected to exceed $53 trillion by 2025.

ESG investing has been on the rise for the past couple of years. According to Bloomberg, money held in sustainable mutual funds and ESG-focused ETFs rose by 53% in 2021 to reach $2.7 trillion and ESG assets are on track to exceed $53 trillion by 2025. Banking software provider Temenos has taken note of this and is launching a new tool to help banks and wealth managers compete in the new environment.

Temenos’ ESG Investing-as-a-service, which can be run in the cloud or on-premise, combines Temenos’ market data management and digital capabilities such as filtering, scoring, and modeling techniques with external data feeds. The company generates easy-to-understand ratings to evaluate hundreds of ESG factors such as carbon footprint, water usage, diversity and gender equality, and executive compensation.

“At Temenos, our purpose is to power a world of banking that creates opportunities for everyone,” said Temenos Product Director of Wealth Alexandre Duret. “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.”

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Banks and wealth managers can leverage the tool to create ESG compliant products, with a lower cost of development. Ultimately, they can offer a digital experience that allows end customers to choose investments that they feel good about and build a portfolio that reflects their values.

Temenos serves 3,000+ banking and financial institutions worldwide representing 1.2 billion end customers. The Switzerland-based company has embedded sustainability practices into its own operations with ESG governance, reporting, and measurable targets. The Carbon Disclosure Project awarded Temenos an A- rating along with platinum recognition.

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The post Temenos Serves Up ESG Investing-as-a-Service appeared first on Finovate.

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