visimoney
: A new report by Economist Impact for Temenos has found that banks are increasingly offering embedded environmental, social, and governance (ESG) solutions to attract and retain climate-conscious customers. The report highlights the importance of engagement with ESG issues, as 24% of European consumers are likely to switch providers if their bank is not involved in ESG. Banks are also transitioning to the public cloud to lower their carbon footprints and embrace artificial intelligence. The report shows that 73% of banks are offering more embedded ESG propositions to customers, and 51% believe that banks will no longer own data centers in the next five years.
With the focus on lowering their carbon footprint and utilizing data-intensive AI, banks are moving to the public cloud. According to the report, data centers are expected to consume 13% of the world’s energy by 2030 and banks are taking action by providing capital to climate-friendly projects, stopping funding for carbon-intensive industries, and investing in low-carbon technologies. Banks are also reducing emissions internally and in their supply chain. Temenos has launched Temenos Enterprise Services on Temenos Banking Cloud to enable banks to deploy software in just 24 hours, potentially reducing their carbon footprint by 95% compared to on-premises alternatives.
The report emphasizes the growing role of banks in tackling climate change, as ecosystems enable banks to play a more significant and embedded part in people’s lives. Customers are demanding more from their banks when it comes to positive social and environmental impact. Banks are responding to this demand by prioritizing their sustainability and ESG credentials to attract and retain customers. The increasing competition from fintech companies, which estimate lifetime customer value at over $2,700, is also pushing traditional banks to enhance their sustainability efforts.
