Find out why and how the banking industry must work towards sustainability
Banks are currently under pressure from various stakeholders such as regulators, employees and even customers to work towards sustainable banking. In addition to decarbonizing their portfolios and supporting investments in renewable energy companies and others, it is increasingly important for banks to require sustainability improvements when approving corporate loans and to support green projects. has become important.
Banks are fueling the global economy through capital expenditures, and the choice of bank investments influences sustainability success. Technology and digital platforms can be real drivers of application sustainability in banking, contributing to the ultimate goal of sustainable banking.
Achieving sustainable banking requires strategic planning and execution of banking and business activities, while considering the impact of environmental, social and governance (ESG) initiatives . The banking sector has long been committed to social responsibility and governance, but has not addressed the environment.
A foundation for sustainable banking
Initiatives such as the United Nations Sustainable Development Goals (SDGs) and the Global Goals and Principles for Responsible Banking are the cornerstones of banks’ ambition towards sustainable banking.
By incorporating sustainability principles into corporate strategy, product/service decision-making processes, and investment decisions, banks can exert influence in promoting environmentally sound projects and supporting companies. can. Banks can have a positive environmental impact in a wide range of areas, from physical stores and premises to ATM corners and cash transfer processes. By adopting the Principles for Responsible Banking, banks focus on aligning their business strategies to meet and contribute to the goals expressed in the Sustainable Development Goals, the Paris Agreement and relevant national and regional frameworks. doing. And as central banks and capital markets regulators continue to raise important debates about how data is collected, analysed, used and disseminated, financial institutions need to use ESG/CSR reporting and visualization, modeling, industrialization and automation to We take steps to disclose data, measure and report on our sustainability performance and impact.
Digital platforms can help banks address sustainability priorities, such as net-zero emissions and energy efficiency, and help build momentum for goodwill and strengthen brands.
Supported by technology and digital platforms
Addressing ESG requirements is no longer just a matter of regulations and compliance standards, it is also about creating products that resonate with a digitally native, sustainability-focused customer base.
Digital platforms can help banks address sustainability priorities, such as net-zero emissions and energy efficiency, and help build momentum for goodwill and strengthen brands. Blockchain, Big Data, Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP), Robotic Process Automation (RPA), Optical Character Recognition (OCR), Cloud Computing, Internet of Things (IoT) , Quantum Computing and other technologies create limitless possibilities for banks as they enter the stage of designing financial operating processes and products to enable sustainable banking that improves competitiveness.
For example, integrating ML, OCR, NLP and APIs will facilitate the development of a digital platform for bank loan origination that enables electronic documents to be scanned, extracted, classified and intelligently uploaded, shared and stored. will be Paperless banking supports our efforts to reach our net-zero emissions goals.
Many banks are adopting green cloud computing infrastructures to improve energy efficiency. The Green Bond Management Platform leverages blockchain, IoT, big data, ML and NLP to offset projects that mitigate climate change impacts and protect the environment by offsetting emissions as they are spent. Support fundraising. Also, by developing innovative methods such as reducing green certification costs, improving the green credit rating system in the financial market for SMEs (small and medium-sized enterprises), and enhancing the ability to evaluate and classify green projects, banks will be able to implement green finance. We are making it possible.
Building application sustainability in coding is no longer a non-functional requirement. Therefore, the choice of application design, appropriate technology infrastructure, open and componentized application architecture, implementation of modern technologies and tools for monitoring application performance, etc. It is important. These allow banks to determine how efficiently their businesses are running.
In addition to moving workloads to the cloud and using less energy-consuming terminal equipment, implementing carbon footprint monitoring and reporting tools is essential for a sustainable infrastructure.
By adopting smart DevOps processes to continuously optimize software and building optimized DevOps pipelines, banks are striving for more efficient energy use. You can also support your application’s sustainability efforts. In addition to moving workloads to the cloud and using less energy-consuming terminal equipment, implementing carbon footprint monitoring and reporting tools is also essential for a sustainable infrastructure. Sustainable workload and data usage goals are supported by using cloud service providers with data centers where workloads are likely to be powered by renewable or low-carbon energy.
There are many other opportunities for banks to use their technological prowess to advance environmental initiatives in their internal and external operations. With more and more environmentally conscious competitors , there is no time to wait to take bold action.
