Banking a Transitioning Asia: Digital Dollars and Green Sense

 

Sustainable finance is reshaping Asia’s financial sector, with banks leading the charge in driving economic growth through green transition and technology adoption. Panellists from Temenos, BNY Mellon, DBS, and SCBX shared insights on embedding sustainability into banking strategies and leveraging innovation for impactful outcomes. 

Embedding Sustainability into Banking Operations 

Temenos: 
- Role: As a banking platform provider, Temenos enables financial institutions to integrate sustainability through digital transformation. 
- Key Contributions: 
- Focuses on efficient, cloud-based solutions to help banks decarbonize while managing regulatory ESG reporting requirements. 
- Provides critical data for climate stress tests and ESG compliance. 
- Insights: Sustainability isn’t a standalone offering; it’s embedded into core technology, ensuring seamless integration into banking operations. 

BNY Mellon: 
- Legacy and Innovation: 
- With over 240 years of history, BNY Mellon approaches sustainability as part of its resiliency framework. 
- Has successfully met Scope 1 and 2 emissions goals under a 1.5°C pathway. 
- Key Initiatives: 
- Supports clients in managing sustainable assets, issuing green bonds, and building green investment portfolios. 
- Focuses on aligning internal operations with broader climate objectives, leveraging its strategic position in the financial ecosystem. 

DBS: 
- Transformative Journey: 
- A pioneer in digitisation, DBS integrates sustainability as a core principle in both operations and customer interactions. 
- Invests heavily in AI, data architecture, and horizontal organizational structures focused on customer journeys. 
- Sustainability Integration: 
- Uses generative AI for ESG risk assessments and streamlines sustainability into decision-making processes. 
- Ensures that sustainability is a foundational element across all customer touchpoints and banking innovations. 
 

Sustainability as a Growth Lever in Emerging Markets 

SCBX (Thailand): 
- Ecosystem Role: 
- As Thailand’s oldest financial group, SCBX embraces a dual mandate of internal sustainability and climate-focused business growth. 
- Actively orchestrates climate transition efforts, aligning with Thailand’s green growth strategy. 
- Key Strategies: 
- Established SCBX as a group holding company to drive next-wave growth, with sustainability as one of its core pillars. 
- Collaborates with public and private sectors to develop Thailand’s green growth master plan, addressing infrastructure gaps in data centres and renewable energy. 
- Insights: Recognizes the financial sector’s role in facilitating the country’s transition to a more sustainable and technology-driven economy. 
 

Key Challenges and Opportunities 

Challenges: 
- Variability in ESG maturity across regions and regulatory landscapes. 
- Fragmented data systems and the complexity of integrating sustainability into legacy banking systems. 
Opportunities: 
- Leveraging AI, cloud technology, and horizontal organizational structures for better ESG integration. 
- Driving economic growth through sustainability-focused innovations like green bonds and carbon financing. 
 

Future Directions 

Data and Technology: 
  • Emphasis on AI and data lakes to enhance ESG assessments and optimize decision-making processes. 
  • Adoption of generative AI tools for seamless ESG reporting and compliance. 

Collaboration:

  • Strengthening public-private partnerships to address infrastructure gaps and promote green growth.
  • Co-developing policies and frameworks to accelerate the transition toward net-zero goals.


Leadership: 

  • Establishing financial institutions as orchestrators of sustainability by aligning banking innovations with national climate objectives.
  • Ensuring sustainability is not an afterthought but embedded into all strategic and operational processes.
     

Conclusion
The panel underscored the critical role of banks in shaping Asia’s sustainable and technology-driven future. By embedding ESG principles, leveraging technology, and collaborating with stakeholders, financial institutions can catalyse the region’s green transition while maintaining resiliency and growth. 

 

Speaker:

  • Dalad Tantiprasongchai, Chief Operating and International Business Officer, SCBX
  • Helge Muenkel, Chief Sustainability Officer, DBS Bank
  • Janet Johnstone, Chief Administrative Officer for Asia Pacific and Middle East, BNY
  • Kalliopi Chioti, Chief Environmental, Social & Governance Officer, Temenos

Moderator:

  • Kavitha Menon, Director, Singapore Sustainable Finance Association

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