ESG is Driving Growth Opportunity for Banks

Jun 15, 2022

Following the successful launch of SAI360 Launch Two, it’s no secret that ESG is key to our vision. Every day, we receive more ESG questions from customers; we have increasingly detailed discussions about ESG with partners. We see how ESG can be a pivot for companies to transform their business, deepen customer relationships, and expand their products, services, and revenue opportunities.

It’s not that social, or governance aspects of ESG aren’t important, but as Gartner® states in its research report: Sustainable Business and ESG Actions for Bank CIOs:

The social and governance aspects of ESG are still important to the future of banks and should not be ignored. However, the most immediate technology, regulatory, operational and business threats stem from the environmental aspects of sustainability.

In banking, environmental impact and sustainability are driving ESG conversations with an increasing sense of urgency. Consumer attitudes are changing, with both retail and corporate customers keen to invest and use in line with their conscious and values. Meanwhile, banks need to be ready to manage and report on their sustainability impact and carbon footprint.

Their investment strategy needs to align, so assets and funds are invested with organizations with the appropriate environmental and sustainable impacts. Bank executives need to be ready to report on those lending and investment strategies.

The bank’s compliance team needs to be ready for increased rules, guidelines, regulatory scrutiny, and the ability to track, manage and report new data, protocols, ratings, and assessments.

Finally, the team creating demand-side products and services needs to understand and meet the needs and expectations of both retail and corporate consumers.

It’s a vast, complex area.

Complimentary Gartner Research Report

To help bank executives, SAI360 is offering access to a Gartner® research report: Sustainable Business and ESG Actions for Bank CIOs, which is available for a limited time.