Investment advisory with ESG preferences

The award-winning implementation partner - for Avaloq ESG module

Zug, Jan 2022

Are you ready for the new ESG regulations? Banks need to act quickly to comply with the new ESG regulations under the EU Action Plan. Rapid implementation of extensive new regulations for business processes and IT systems is now required. We support you in the implementation of Avaloq's ESG and SFDR solutions to bring you a step closer to this goal.

A more sustainable global economy and more transparency with regard to sustainability aspects in the financial industry - that is the goal of the EU Action Plan. As part of this Action Plan, banks operating in Europe have to comply with many new regulations and implement those in their daily business. The adaptation of the delegated regulation DelVo 2017/565 (MIFID II), the SFDR, and the EU taxonomy are the main areas where banks will have to take action.

Besides the legal dimension, the implementation of ESG criteria opens up a growth opportunity for banks. The advisory process can be designed to be more attractive and emotional for the end customer. Studies show that ESG-compliant investments have the potential to outperform, e.g. by minimising operational risks, and that high growth rates are achieved with investments in the ESG area.

EU Action Plan Overview


Engage us as your implementation partner for the Avaloq ESG solutions.

Our Wealth Advisory Consultants will advise you on best practice solutions with regard to ESG regulations. A key part of the consultation is the selection of the data provider and to determine on which depth the bank would like to use the taxonomy data. Confinale adapts the new Avaloq ESG solution and interfaces to your needs to ensure that your core banking environment is up to date.

Avaloq has honoured Confinale as "Implementation Partner of the Year" for the second time in a row. With the implementation of the ESG module, you will have the opportunity to get to know and appreciate our working methods and our team.


Extension of the ESG advisory process

With the ESG module, the advisory process is being extended to get to know the ESG preferences of the client. Using defined suitability rules, the ESG data from the data provider is compared to these preferences. This customisation, implemented by Confinale for you, covers the following areas:

  1. Extend advisory processes with ESG preferences of the client.
  2. Selecting data and document providers for ESG criteria.
    • Integration into the Avaloq object model.
    • Parameterisation and commissioning of the Avaloq SFDR solution regarding transparency or disclosure requirements.
  3. Define suitability rules for the pre-trade and setup a sustainability monitoring system for the investment assets.

ESG Process

Data import into the ESG module

The Avaloq solution includes an enrichment of the wealth management processes with ESG data and the import of SFDR disclosure documents. The ESG module is available for Core Banking Systems from version ACP 4.9 (Kernel).

To use the Avaloq module, ESG data must be delivered by an external ESG data provider. The bank is responsible for selecting the data provider based on the ESG criteria that are relevant and important to their business. Confinale supports you in selecting the ESG data provider, customises the interfaces between Avaloq's ESG module and the data provider, and defines the object model at BP/asset and IPS level. Suitability rules ensure that the consultations of the bank are compliant with the clients' ESG preferences. In addition, we support banks integrating a provider of disclosure documents for the transparency disclosure requirements according to SFDR.


Together we achieve a rapid implementation

The faster a bank implements the ESG module, the more it can benefit from growing ESG markets. Besides, the various regulations in the sustainability area have to be implemented as early as 2022, in some cases 2023. Contact us now in case you are planning to integrate the ESG module in your existing Avaloq environment.

Contact person:

Andreas Egli Confinale Partner

Andreas Egli
Head IT Consulting

Contact now