Switzerland-based KYC Exchange has launched a Web-based communication platform for Know Your Customer (KYC) and Customer Due Diligence (CDD) data sharing for the international banking community
The global launch of the platform follows testing in September with banks from across Europe and Asia. The participating pilot banks included globally active investment and transaction banks, private banks as well as banks with regional focus, in particular with Eastern European and Middle Eastern links, says the company.
KYC Exchange Net allows for the exchange of validated KYC data between regulated financial institutions such as banks and their clients. Feedback from bank pilots indicates time savings of up to 90% in the front office where client data is being collected. The firm says further savings of up to 50% are expected in the middle and back office as the KYC data which is verified and validated is more complete and accurate than traditionally collected data.
European banks take on average 30 days to obtain the client's KYC data - for a recurring KYC (KYC renewal) this increases to 74 days. The new KYC platform is designed so that a client bank can release accurate KYC data to any counterparty bank in less than five minutes.
Majority-owned by Zurich-based conglomerate IHAG Holding, KYC Exchange Net has yet to confirm any bank subscribers to the service.
The venture will soon face competition from the banking co-operative Swift, which earlier this month announced plans for the creation of a global Know Your Customer (KYC) Registry to provide users with access to a central repository of up-to-date institutional information shared by participating banks.