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Summary: In this blog post, we are going to find out what AI in ESG Banking software is and how banks can use it. Moreover, we will learn about the best provider of this software.
The finance sector is continuously increasing and is expected to grow at a CAGR of over 8%. Considering this, many FinTech companies have started nowadays and are contributing to the growth of the economy. However, they encounter challenges that can be overcome using AI in ESG Banking and Finance Software.
The usual struggle that FinTech companies and new-age banks face is that their employees are managing an unsustainable workload. Banks and FinTech companies have policies to ensure a sustainable world that is green. Apart from CSR activities, they are also responsible for sanctioning loans based on the ESG practices followed by corporations.
However, their financial analysts struggle to read the policies of all corporations before making an informed decision. Therefore, they select AI ESG Banking and Finance Software, which is known for automating the analysis work and saving employees’ time.
In this blog post, we are going to find out what AI-based ESG software is and how banks can use it. Moreover, we will learn about the best provider of this software.
So, let’s get started!
What is ESG?
ESG, or Environment, Social, and Government, is a framework that is useful to understand how a business works and manages risks. These risks are related to the environment, social, and governance criteria. Majorly, ESG is used often with investors and stakeholders.
This is the most common standard that measures how a company operates with respect to the planet. Banks and financial institutes also decide about whether they need to allocate loans to a business or not based on the ESG policy it follows.
Role of AI in ESG
Currently, banks and other FinTech companies leverage Artificial Intelligence (AI) to analyze the ESG policy before loan allocation or investments. Financial analysts, fund managers, and other employees use AI to make informed decisions before taking any step.
AI in ESG software analyzes data. It provides insights regarding how a company’s ESG policy is and how it follows them. With AI, banks and financial institutions can identify the associated risks and make transparent decisions.
AI technology helps bankers assess the company’s performance in real-time and facilitate environmental and social impacts. AI-powered analytics enhance portfolio management by enabling dynamic optimization and risk assessment.
Now, you may find it confusing about which company you should choose to get tailored AI ESG Software.
inoday, #1 AI development company
inoday is a top custom AI development company, enabling businesses of all sizes to get tailored AI agents. These custom AI agents assess the ESG policy of a business and its performance using the same parameter to generate reports. Based on it, financial advisors and bankers make decisions whether to provide loans or not.
This low-code platform helps businesses get more done without needing their employees to work using heavy code. Using this software will enable a business to increase its workforce productivity, which eventually leads to a boost in its ROI.
The following are a few of the notable benefits of inoday’s AI for ESG.
- Enable banking advisors and other financial institutes to make decisions based on available data.
- Assess the ESG policy document of a business by examining it automatically to get insights.
- Compare the performance of a business according to the ESG criteria they have mentioned in their document.
Still confused? Let’s explore more about it with a use case.
Use Case of NBFC: Leveraging AI in ESG for Enhanced Financial Solutions
Its employees are working under immense pressure as they need to examine thousands of documents in a day. So, they use multipurpose AI agents who help them by advising them which one is following the ESG policy properly.
A mid-size NBFC from the finance industry is suffering from one of the biggest challenges of providing loans to 100+ businesses (as per their ESG performance). Moreover, they have to do it within a timeline, which has put tremendous pressure on their workforce.
They needed to do the work day in and day out, but still there was no substantial positive outcome. After evaluating the market, they chose inoday’s AI-based ESG Banking and Finance Software and integrated it.
They needed to do the work day in and day out, but still there was no substantial positive outcome. After evaluating the market, they chose inoday’s AI in ESG Banking Software and integrated it with the current business processes..
After that, they are now able to automate most of the part of the examination of the ESG policy and business performance to make decisions based on available time. This has accelerated their work regarding verifying the performance by analyzing documents.
How Can inoday's Custom AI in ESG Banking Software Transform Your Finance Business?
To address the challenges in the current scenario, it is important for businesses in the finance industry to embrace AI technology. This technology will help your business to automate the work of analyzing documents quickly and more accurately. After this, a report with insights will be available for you.
As an AI development company, inoday helps businesses in the finance industry get custom AI in ESG Banking Software. It will help a business accelerate its working capability by evaluating more documents in less time.
If you also want to accelerate your business with the AI and ESG software from inoday, get in touch with us at info@inoday.com or schedule a demo now.
