A group of 12 regional and digital financial institutions have joined together as investors and members in KY3P, for managing third-party risk and optimising the processes by which financial institutions assess and monitor inherent risk.
KY3P offers the first central, cloud-based platform for vendor on-boarding, collection and verification of due-diligence data and vendor-risk monitoring covering a range of third parties, including vendors, affiliates, sub-advisors, distributors, clearinghouses and other service providers in the financial industry.
For suppliers, KY3P provides a mechanism that minimises the burden of responding to duplicative due-diligence requests from financial institutions.
KY3P offers three levels of verification services:
- Remote verification: due diligence information is independently validated through the KY3P platform
- On site verification: the service coordinates on site assessment of vendor information
- Custom verification: on-site assessment is conducted based on parameters specified by the user
“Collaboration with our peers is key to achieving a proactive posture in managing third party risk,” says Greg Carmichael, chairman, president and CEO of Fifth Third, which is one of the banks leading the initiative.
“Joining KY3P allows our institutions to leverage established, innovative and industry-leading technology and provides a platform through which we can continue to advance our management and oversight of third-party risk.”
“We welcome these new members to KY3P and value the perspective and leadership they bring to our design team,” continues Ellen Schubert, CEO of KY3P.
“Having them as engaged partners is a significant accelerator for us and reinforces our belief that we can be a game changer for the industry by bringing standardisation to the due-diligence process, improving the quality of risk data and making a broad range of financial institutions more efficient in how they measure and mitigate third party risk.”
Ally Bank, BBVA Compass, Citizens Bank, Comerica Bank, Fifth Third Bank, The Huntington National Bank, KeyBank, M&T Bank, Regions Bank, Santander US, SunTrust Bank and US Bank through their holding companies, are the newest equity owners and design partners in KY3P.
They join KY3P’s existing bank design partners, Barclays, Goldman Sachs, HSBC, Morgan Stanley and UBS, to transform and improve third-party risk management in the financial-services industry.