Atom Bank and Kamma collaborate to improve mortgage book insights, climate scoring, asset pool credentials, and financed emissions analytics.
With Kamma’s help, Atom Bank, the app-based digital bank in the UK, now has access to Kamma’s entire climate suite, providing an unmatched perspective of the mortgage book’s transition and physical hazards.
Furthermore, Kamma will offer improved PCAF scoring, climate credentials on asset pools for securitization, and increased analytics on financed emissions for Atom Bank.
Customers, investors, and regulators are all becoming more conscious of the connection between bank lending and global climate change at the moment the partnership is formed. These players are therefore supporting a speedy switch to net zero.
An extensive analysis of the mortgage portfolio and strategic assistance from the Kamma team will be part of the initial phase of the partnership. The creation of new offers, goods, and customer journeys that implement this new approach will be the focus of the second phase.
Substantial new risks and reporting requirements for mortgage lenders will eventually find their way into the government’s legislative pipeline, along with further reporting and disclosure rules for banks and major listed firms.
Lowering household expenditures and cutting harmful emissions require greening the UK’s real estate assets. Clear instructions for risk management, regulatory reporting, and green asset qualifying will be provided by Kamma’s solutions.
Kamma has created a more sophisticated perspective on the UK property climate profile. Its offerings include advanced address matching and significant modeling to bridge data gaps, data integration and calibration to boost precision, and exclusive analytics that show UK property owners how to get to Net Zero.
The impact of climate change has not been considered in bank financing
“Banks have a crucial role to play in solving the climate challenge,” stated Edward Twiddy, director of ESG at Atom Bank. It is critical that this change since banks have made far too many loans without considering the effect humans are having on the environment.
As a digital bank, we’ll make use of the greatest technology out there to guarantee that we measure emissions precisely, comprehend risk, and assist our clients in lowering their expenses, raising the value of their homes, and preparing for a world without carbon emissions.
“We see no justification for holding off on taking action now that the evidence and necessity for change are in front of us. The harm we have already caused is obvious. We are thrilled to be working with Kamma to benchmark our emissions, control our risks, and—above all—offer Atom and our clients useful strategies for navigating the future.
Atom has committed to being a bank that emits zero carbon by 2035. The bank clarified that, in comparison to traditional banking methods, its digital and cloud-native business model has a lower environmental impact. Additionally, the supplier selection strategy and chosen premises are designed to further cut emissions. With the use of cutting-edge analytics, Atom now intends to tackle financed emissions, assisting both the bank and its clients in lessening their carbon footprint.
“Our strategy is to partner with market leaders in order to support the development of cutting edge propositions and light a pathway to Net Zero for other organizations,” stated Orla Shields, CEO of Kamma. The chance to work with Atom Bank as a partner on their climate journey excites us much.
