Data is at the centre of banking and financial activities and will be even more in the future. Data related to the knowledge of the clients, such as individuals or legal entities are, definitely strategic.
That’s why the ecosystem (regulators, banks and providers) are considering the mean of optimising the data collection processes and, at the same time, the partnership with market KYC initiatives known as the ‘Utilities Services’ and e-KYC all around the world.
The existence of data governance, a strong internal process, and specific tools to serve a single vision of third party data –used on the client onboarding and during the KYC reviews– must go through the construction of an industrial and centralised approach to digital data processing.
Indeed, offers from data providers are still highly segmented. Banks are forced to use several solutions to cover the regulatory requirements and meet the needs of their business lines. Consequently, the huge number of utility providers and market solutions may result in higher costs for banks processing, rather than reducing them.
Also Read: Blockchain-based e-KYC platform claims the throne at Binar Academy and Tokopedia’s Hack of Thrones
Mergers between the same data providers and utilities have begun to take place with the aim to extend the offer over all the value chain and ultimately to address a wide range of clients. Data aggregators can become a serious competitor to utilities because they provide the tech flexibility via APIs, which frees banks from the constraints of interfacing with several data providers and promoting e-KYC digital process.
Several banks have established collaboration or investment links with the best external data and documents providers in the market while maintaining high-level internal expertise. Currently, there is no universal third-party data sharing model approved by markets, regulators and banks.
Some banks no longer wish to be the intermediaries and have already turned to a strategy of mix-sourcing through appropriate partnerships with data providers in Europe, the US and Asia. The consolidation between the various market providers, which has accelerated for almost three years now, will have to lead to conglomerates by large geographical areas.
Despite the good start to the consolidation process to serve a wider data value chain and extended geographical coverage, there is still a lot to be done to be able to share data –to standardise it and to make it reliable. A niche that can favour new players in the e-KYC aggregator utilities with better offers at the business and technical levels.
Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.
The post How e-KYC aggregators are the future players in the data supplier market appeared first on e27.