Financial services software and cloud solutions provider Finastra has launched its ESG Service, a cloud-native SaaS solution that streamlines sustainability-linked lending.
As a cloud-native SaaS solution that uses open APIs, it provides a high degree of flexibility to support varied deal structures, and offers extensibility for inclusion of new capabilities and partner applications.
It also has scope to add additional pricing components, beyond interest and ongoing fees, and the ability to support multiple transaction processing systems that require loan pricing adjustments.
By providing an automated means for tracking ESG performance and the related margin changes, the service will deliver significant benefits to users across the middle and back office, including credit managers, borrowers and sustainability coordinators.
Having an automated solution for managing the KPIs and ESG pricing changes of sustainability-linked loans enables banks to grow these lending portfolios efficiently at scale and minimises the risks tied to manual processes.
Simon Thorogood
“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.
Furthermore, with complex and constantly-evolving ESG regulations on the horizon, having a centralised store of data will greatly aid banks in being able to efficiently and accurately meet their regulatory obligations in terms of meeting the relevant disclosure requirements.”
explained Simon Thorogood, Senior Director, Corporate and Syndicated Lending, Finastra.
