BMO Latest KYC.com Addition

The service will standardize and streamline BMO's management of know-your-customer (KYC) information. It centralizes operations so firms can benefit from an industry-led standard for data quality along with lower costs.

Signing BMO may accelerate adoption of KYC.com's service in Canada, Darren Thomas, managing director and head of counterparty manager at Markit, tells WatersTechnology.

"BMO is the first Canadian bank to adopt a KYC utility, and we think this will accelerate adoption by firms and banks in the region," he says. "We're also seeing large asset managers interested in the utility."

KYC.com was originally designed with the help of Citi, Deutsche Bank, HSBC and Morgan Stanley.

Thomas says regulators asking banks to know their counterparties and have higher quality data are some of the drivers pushing interest in KYC. Banks, asset managers, and other firms are also seeking to keep costs down.

Kyc.com serves 2,000 buy side firms representing 83,000 legal entities. Around 33 firms and banks are in the pipeline to sign up with the service, Thomas says, with about 12 banks in total subscribed.

Among its newest customers is Pimco, which signed on to the service in May, prompting greater interest in KYC.com and the service it provides, says Thomas.

"Banks don't want to miss out, and when they see their biggest customers, like Pimco, sign up. We've seen a significant growth of firms engaging with us," he says.

As interest grows, KYC.com is continually looking for new solutions or partnerships to improve its service and performance for subscribed firms, Thomas adds.