HSBC and Morgan Stanley are participating on the initial scope and six-month design process to create a client onboarding solution with business process consulting and technology firm Genpact and enterprise data provider Markit.
HSBC and Morgan Stanley may be joined by about 10 other buy-side and sell-side firms who will work with Genpact, and Markit by providing subject matter experts and other informational resources to create a product that will onboard clients more efficiently.
The product is being designed to handle the end-to-end process that banks go through annually in client onboarding, such as documenting any changes in investors, corporate action and renewals, according to Yasmeen Jaffer, director and co-head of Markit Counterparty Manager.
âThe Counterparty Manager platform to-date only facilitates the flow of data and documentation between one party to another,â says Jaffer. "Once the banks receive the documentation from us, they go off and follow their KYC [know your customer] process diligence."
Jaffer adds, âWith the new initiative, the brand new product by Markit and Genpact, weâre actually going to undertake a lot of the KYC processes the banks do to help them to actually get access to that data in a much quicker and more efficient way, then each of them doing that same process multiple times.â
The product is set to launch in 2014, according to Jaffer. Currently, 75 broker-dealers and 700 buy-side firms use Markitâs Counterparty Manager for regulatory needs. Genpact serves 100 out of the Fortune Global 500.