Temenos launches ESG investing-as-a-service

Cloud banking platform Temenos has now launched ESG investing-as-a-service for its banks and wealth manager customers to roll out sustainable investments.

The service will accelerate time-to-market for ESG compliant products and reporting, while also reducing the cost of development.

It will combine the Temenos front office, market data management and digital capabilities with external data feeds to provide an end-to-end service.

“With the new ESG Investing service, we will help private banks and wealth managers to become compliant, and their customers invest with a purpose,” Temenos product director of wealth management Alexandre Duret said.

“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.”

According to Bloomberg analysis, global ESG assets are on track to exceed $53 trillion by 2025, more than a third of the projected total assets under management.

With the ESG service, banks will be able to create investment products and power digital experiences that allow investors to build their portfolios around their values, according to Temenos.

It will evaluate hundreds of ESG factors, including environmental factors such as carbon footprint and water usage, social factors such as diversity and gender equality and governance factors such as executive compensation.

“[Temenos’s] wealth management solution allows us to deliver to our private banking customers advisory and discretionary management services,” ING product owner and customer journey expert investments Marc Vanvilthoven said.

“Temenos ESG Investing can accelerate time-to-market for ESG compliant products while reducing the cost of development and adopting standard features,” he added.