(10 March 2023 – United Kingdom) Finastra’s new environmental, social and governance (ESG) Service will work to support banks in delivering a sustainable lending experience to corporate clients.
The ESG Service is a cloud-native software-as-a-service (SaaS) solution that aims to streamline sustainability-linked lending. Open and scalable, ESG Service facilitates the integration of sustainability performance target criteria into ESG pricing for both Finastra Loan IQ and other back-office systems in the market.
By providing an automated means for tracking ESG performance and the related margin changes, the service aims to deliver significant benefits to users across the middle and back office, including credit managers, borrowers and sustainability coordinators.
“A shift in the mindset of corporate stakeholders, investors, customers and employees is pushing banks to adopt a more sustainable business model and this is driving demand for sustainability-linked loans,” said Finastra Senior Director of Corporate and Syndicated Lending, Simon Thorogood.
“This creates a huge opportunity for banks to grow revenues and become leaders in the space, with borrowers looking for banks to help shepherd them through their ESG journey. Finastra's ESG Service offers banks a well-defined, transparent and automated solution for managing ESG performance and the associated pricing adjustments, creating a more seamless experience for clients,” he added