Grygo is the chief content officer for FTF & FTF News.
Fixes for ESG data management challenges may arise during a “Tech Sprint,” launched by PIMFA WealthTech, a market network and technology platform created via a trade association and principal partner Morningstar.
On March 5, they officially kicked off a “Tech Sprint” for innovations in environmental, social, and governance (ESG) factors, particularly for ESG data management.
PIMFA WealthTech is part of the Personal Investment Management & Financial Advice Association (PIMFA), a London-based trade association for wealth management, investment services, and the investment and financial advice industry in the U.K.
“FinTechs active in this area are invited to participate in, and demonstrate how, their technologies and solutions can make a difference to ESG and sustainable finance reporting, verification and disclosure,” according to the PIMFA WealthTech announcement.
The announcement adds: “If you are a FinTech, which fits the criteria and can demonstrate to wealth managers how your technology can benefit clients with the use of Morningstar data … Registrations are open now and will close on Friday 15th March 2024 at 5 pm.”
PIMFA WealthTech wants “high-growth, market-innovating scale-up firms, which are typically post-seed/Series A funding. FinTechs should have a demonstrable minimum viable product and, ideally, already be engaged with the financial services sector, although this is not essential,” officials say.
In addition, to demonstrating how Morningstar datasets can be incorporated in their solutions, competing fintechs must show “a preference for solutions that utilize APIs [application programming interfaces], open data and artificial intelligence (AI),” according to PIMFA WealthTech.
“A briefing session for chosen fintechs will be held on 20th March, and fintechs will be invited to showcase their solutions at the Morningstar Investment Conference on 1st May,” PIMFA WealthTech officials add.
“ESG and sustainable finance are a priority area of focus not only for wealth managers and advice firms but also the Financial Conduct Authority (FCA). PIMFA … is taking a leading role in supporting the development of new guidance in partnership with the FCA to ensure the information provided to consumers is clear and consistent and so as to eradicate, where possible, the detrimental impact of the phenomenon known as ‘greenwashing,’ ” according to PIMFA
PIMFA research conducted last year in association with Alpha FMC, a management consultancy for the wealth and asset management industries, “indicates the ESG data market is becoming increasingly challenging for firms to navigate, that technology solutions in this area will become invaluable, and that using innovative technology, such as A.I. could prove vital for integrating all aspects of ESG and sustainable finance into a firm’s offering and operations,” according to PIMFA. “For example, where providers can help to aggregate, analyze, and populate information needed for climate-related disclosures at an entity, product or consumer-facing level.”
For the past year, Morningstar and PIMFA WealthTech have collaborated on several “Tech Sprints” that focus on “common issues within the wealth management and advice sector where new technology could offer the most effective solution for all parties,” officials say.
“ESG and Sustainable Finance is a top priority for PIMFA members, with the recent FCA sustainability disclosure requirements and investment labels policy a key step for increasing trust in sustainable investments,” says Richard Adler, executive director of PIMFA WealthTech, in a prepared statement. “The role technology can play in helping our members meet new requirements and serve their clients better has the potential to be enormous.”
Here is the link for registering for the contest: https://bit.ly/43us5Ff
Need a Reprint?