Vendor Analysis
published on Nov 01, 2023
Report Overview:
This NelsonHall vendor assessment analyzes Avaloq's offerings and capabilities in ESG services for the banking and financial services sector
Who is this Report for:
NelsonHall’s ‘Transforming the Banking Industry with ESG Services’ profile on Avaloq is a comprehensive assessment of Avaloq’s offerings and capabilities for the BFS sector, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of ESG services and identifying vendor suitability for ESG services in banking RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Avaloq’s BFS-focused ESG service offerings and capabilities and market and financial strength, including:
- Identification of the company’s strategy and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and Avaloq service components
- Analysis of the company’s delivery organization including the location of delivery centers.
Key Findings & Highlights:
Avaloq began delivering ESG services to the financial services industry in 2022 to address the MiFID II ESG amendment. The legislation was effective August 2, 2022, and firms within the scope of EU MiFID II (i.e., providing investment advice and portfolio management services) were required to determine client sustainability preferences in conjunction with suitability assessments. Avaloq’s offering to support this new requirement was beta-tested in 2021 and went to full release in February 2022.
Since the launch of its first offering, Avaloq has launched two more ESG offerings, with three more in beta testing and set to launch over the next twelve months. Avaloq intends to launch ESG offerings in response to regulatory requirements. These offerings will be customized by regulation, country, and sub-process. It offers services to implement and maintain the offerings to reduce the effort and resources clients need to apply to remain compliant. Avaloq will not offer stand-alone ESG services independent of its solution offerings. It will continue to provide solutions in both on-premise and SaaS delivery modes.