The case in favour of the KYC utility model is clear: it removes the need for the same documents to be provided multiple times and therefore reduces operational costs for banks and clients’ workload.
However, there are a number of utilities in the market that all seem to be jostling for a piece of the same market segment.
Markit operates the KYC.com utility with Genpact. Although there are a number of competing utilities, Jon May, CEO of the joint venture, indicates a consolidation in the market is unlikely.
“The utilities are different,” he says. ” Swift has its own niche and we don’t look to compete in their space.”
May argues the benefit of adopting a utility for a bank is the opportunity to work within a fresh regulatory climate.
“In the utility databases, there is no burden of legacy,” he says. “There is not the situation of having different groups of data that don’t talk to each other. By centralizing the data, it becomes an asset.”
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