Markit and Genpact Partner for Launch of KYC Utility

Markit has partnered with Genpact, a business process management firm, to launch a know-your-customer (KYC) tool, Markit | Genpact KYC Services, which was designed in partnership with Citi, Deutsche Bank, HSBC and Morgan Stanley.

The service standardizes and centralizes the collection and management of legal entity data and documents to help banks comply with KYC and anti-money regulations, including Dodd-Frank, EMIR, FATCA and MiFID, by having asset managers, corporations and hedge funds submit the relevant data to the service’s portal at KYC.com. While the service somewhat competes with similar KYC utilities, they are somewhat different such as that SWIFT’s tool focuses on correspondent banks, DTCC’s focuses on broker-dealers, while the Markit and Genpact service focuses more on the broader capital markets.

At first, the service will provide coverage for banks booking trades in the U.S. and U.K., and Markit and Genpact plan to expand the service to more jurisdictions going forward. Institutions can submit their data for free and choose which banks to share the information with, and those banks who use the service to manage KYC data are the ones who pay for the service.

In addition to centralizing the data, the service will actively monitor client information and perform proactive data revalidation on regular schedules. The service also uses third-party experts as advisors on global regulatory standards, cost benchmarking and information security.

“The combined capital markets technology, data analytics and domain expertise from Genpact and Markit, along with the insights provided by our banking partners, has led to a service that marks an inflection in the way business process services are delivered and changes how the industry manages a core function. This collaboration demonstrates how the banking industry is implementing new operational strategies in response to regulatory challenges,” says Monty Singh, senior vice president and business leader, Capital Markets and IT Services, Genpact.

The new service builds off the firms’ existing technologies, including Genpact’s Remediation as a Service platform, which offers transparent workflow, document management, analytics, reporting, traceability and governance; and Markit’s Counterparty Manager solution, which allows users to automate how they share regulatory information and KYC documents with over 80 banks worldwide. Counterparty Manager will continue to offer a single workflow system to share information with banks.