Software firm Temenos has launched ESG Investing-as-a-service to help banks and wealth managers cater to the increasing demand for sustainable investing.

The service, which runs on Temenos Banking Cloud, is designed to speed up time-to-market for ESG compliant offerings and reporting while minimising development costs.

It combines Temenos front office, market data management and digital capabilities with external data feeds from various providers to offer a complete end-to-end service.

ESG investing, which is also known as sustainable, socially responsible, or impact investing, is a way of investing in firms based on their commitment to one or more ESG factors.

Temenos ESG Investing service will allow banks to create investment products and enhanced digital experience to help investors to make meaningful investments and build a portfolio around their values.

It will provide pre-integration to third-party data vendors with ratings to analyse a number of ESG factors.

These include environmental factors such as water usage and carbon footprint, social factors such as gender equality and diversity, and governance factors including executive compensation.

Temenos Wealth product director 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.”

Recently, Temenos expanded its global partnership with AWS to run Temenos onboarding and origination solutions on AWS.