Home > Business > BGL And i-Hub Join On KYC

French-Luxembourgish bank and PSF ready to launch strategic partnership on Know Your Customer services. Their centralized and mutualized repository platform will help financial institutions reduce their costs.

Credits © Tyler Franta / Unsplash

BGL BNP Paribas takes a 20% financial stake in i-Hub’s KYC services, a subsidiary of POST Group, Luxembourg’s historical post and telecommunications operator.

The Professional of the Financial Sector (PSF) operates an outsourced KYC platform dedicated to financial institutions. The solution includes the collection, digitization and storage of file and documents for Anti-Money Laundering (AML) and Know Your Customer (KYC) purposes.

It also offers KYC process automation services, such as update management, periodic reviews, risk scoring and name screening of files for natural and legal persons.

The bank’s customers will get free access to the shared solution. More importantly, they will be allowed to “file, consult, update or upload their documents or identification data remotely at any time, benefit from automatic updates of public information relating to legal entities published on trade registers’ websites worldwide, as well as registers of beneficial owners, thus avoiding having to communicate them to their financial institutions, share their files and update documents simultaneously with all of their financial institutions,” the bank said in a press release. By outsourcing its KYC processes and services, it also expects to reduce its IT and management costs.

i-Hub, which is located in Kayl (Southern Luxembourg) hosts its platform as well as the customers’ data in EBRC’s neighboring datacenter. EBRC, aka European Business Reliance Centre, another subsidiary of POST Group, specializes in datacenter, cloud and managed services.

By signing off a strategic partnership with i-Hub and POST Group, BGL BNP Paribas “is exploring new digital and innovative solutions to better serve its customers and enhance its AML/KYC tools,” the bank added. By outsourcing its KYC processes and services, it also expects to reduce its IT and management costs.

The objective of the three partners is to provide Luxembourg’s financial actors (banks, investment funds, asset managers…) with a centralized and mutualized KYC repository platform including managed services.

BGL BNP Paribas is the second early adopter of i-Hub’s KYC outsourcing and pooling solution after POST Finance in 2019. “Other financial institutions will join the project and might take financial stake in the company,” Pascal Morosini, i-Hub’s CEO told Silicon Luxembourg, without disclosing names.

Launched in 2016 by POST Luxembourg, i-Hub operates KYC and AML outsourcing services. The 50-person company is regulated by the Commission de Surveillance du Secteur Financier (CSSF).

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