FinTechs active in this area are invited to participate in, and demonstrate how, their technologies and solutions can make a difference to ESG and sustainable finance reporting, verification and disclosure.

PIMFA WealthTech is seeking high-growth, market-innovating scale-up firms, which are typically post Seed/Series A funding. FinTechs should have a demonstrable minimum viable product and, ideally, already be engaged with the financial services sector, although this is not essential.
Participating FinTechs will need to demonstrate how Morningstar datasets can be incorporated within their respective solutions, with a preference for solutions that utilise APIs, Open Data and Artificial Intelligence (AI).

A briefing session for chosen FinTechs will be held on 20 March, and FinTechs will be invited to showcase their solutions at the Morningstar Investment Conference on 1 May.

ESG and sustainable finance are a priority area of focus not only for wealth managers and advice firms, but also the Financial Conduct Authority (FCA). PIMFA, the trade association for the wealth management, investment services and the investment and financial advice industry, is taking a leading role in supporting the development of new guidance in partnership with the FCA to ensure the information provided to consumers is clear and consistent and so as to eradicate, where possible, the detrimental impact of the phenomenon known as ‘greenwashing’.

Research conducted by PIMFA last year, conducted in association with Alpha FMC a specialist management consultancy for the wealth and asset management industries, indicates the ESG data market is becoming increasingly challenging for firms to navigate, that technology solutions in this area will become invaluable and that using innovative technology, such as AI could prove vital for integrating all aspects of ESG and sustainable finance into a firm's offering and operations. For example, where providers can help to aggregate, analyse and populate information needed for climate-related disclosures at an entity, product or consumer-facing level.

Morningstar and PIMFA WealthTech have over the past 12 months collaborated on a number of ‘Tech Sprints’ to address common issues within the wealth management and advice sector where new technology could offer the most effective solution for all parties.

The first Tech Sprints in 2023 examined how customer-focused technology can be deployed to support the needs of wealth managers with the requirements of Consumer Duty. Subsequent Tech Sprints in late 2023 focused on how new technology and Fintech providers can support wealth managers and advisers with client profiling, onboarding and experience.

PIMFA WealthTech has been created to address digital business transformation through the development and adoption of market-leading technologies. As a digital marketplace and industry network. PIMFA WealthTech’s objective is to drive innovation and enhance collaboration between FinTechs and wealth management and advice firms, operating an Advisory Council of leading wealth management and financial advice practitioners that cover all segments of the sector.

Richard Adler, Executive Director of PIMFA WealthTech, commented: “ESG and Sustainable Finance is a top priority for PIMFA members, with the recent FCA sustainability disclosure requirements and investment labels policy a key step for increasing trust in sustainable investments.

“The role technology can play in helping our members meet new requirements and serve their clients better has the potential to be enormous. We’re delighted to be working with Morningstar on this important Tech Sprint and invite FinTechs in this space to participate and demonstrate to the wealth management industry the type of innovation and support they can offer.”

Anastasia Georgiou, Director of Client Solutions, Adviser Segment, EMEA, Morningstar, commented: “We are proud to continue our longstanding strategic partnership with PIMFA WealthTech to showcase new technology solutions from FinTechs to the Wealth sector.

“Today, firms need to generate insights and ideas for sustainable investments and position new offerings in the market. This includes identifying innovative ways to address the challenge of harnessing the vast amount of data available which is needed to provide accurate reporting and disclosures. Along with PIMFA, Morningstar is proud to help promote new solutions to help firms identify ESG risks and create new opportunities for clients.”