Shuvo G . Roy , Vice President &
Head – Banking Solution ( EMEA ) at Mphasis , discusses the growing importance of ESG and sustainability for both legacy and neobanks today .
As Roy expands : “ The need for efficiency has increased as the pressure on operational costs has grown significantly . Per-person productivity pressures have increased and so has the continuous focus on the reduction of costly errors . The need to keep margins intact in a high-rate market has caused additional focus on keeping costs low .”
In 2024 , it will be increasingly important for banks of all kinds to leverage Gen AI platforms and Large Language Models
He says : “ There is no denying that the importance of ESG – especially E – will continue to gain prominence in the public eye as we witness more and more erratic and extreme weather events across the world .
“ This will not only drive customer behaviour and preferences but also regulations . However , true transition requires much better data quality and more robust data sets to be made available to actors , much quicker .
“ Financial services is now trapped in a situation where intent precedes action by a long period , owing to conditions that are more structural and a bit beyond one ’ s control . We will continue to see pressure on various industries – especially energy – from various quarters of financial services like fund managers .
“ But how much can be achieved in the near term is unfortunately not something that FS as an industry can drive alone .”
fintechmagazine . com 109