The ongoing digital transformation of banks – and financial institutions in general – is not new. Yet, digital is so vast and the amount of work to be done so important that new entrants are able to provide innovative services focusing on specific aspects. Pascal Morosini (CEO, i-Hub) and Abdelha Tayeb (CIO, i-Hub) tell us more about the creation of the i-Hub RegTech, describing its value proposition while discussing their collaboration with BGL BNP Paribas and Fernand Lepage (Director KYC Office, BGL BNP Paribas). The experts also focused on the added value of EBRC and its key participation in making this collaboration a success.
Providing an innovative customer journey in a constantly evolving regulatory environment
According to a recent survey published by the ABBL’s Digital Banking and FinTech Innovation Cluster, focusing on mutualization and outsourcing on the financial services industry, KYC is seen as one of the priorities for most respondents. 93% of them believe that mutualization of certain functions between institutions is valuable for the financial services community and 71% believe that Know Your Customer (KYC), Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) are the most attractive areas to embark on. As explained by Pascal Morosini, “KYC outsourcing is clearly accelerating and there has been a specific need and growing demand from the Luxembourg financial centre for the last 10 years. This dream about the creation of a centralized KYC utility has now become a reality, made in Luxembourg”.
In the current context of increased regulation, banks are transforming through digital, which can clearly facilitate the daily routine of bankers by easing or even replacing their redundant tasks, while also adding significant value to financial institutions as well as to their own customers. In the frame of recent KYC regulations, all the players of the financial services industry are required to collect a growing number of data concerning their clients with the need to update them on a regular basis. “KYC is one of the key business processes of the bank and is therefore regulated by the CSSF. And when it comes to outsourcing, we need to remember that the bank remains responsible for the security and availability of the clients’ data. The bank is also in charge of risk analysis,” underlines Fernand Lepage. As BGL BNP Paribas is going through a profound digital transformation to answer to the new needs of its customers, it decided to partner with i-Hub, a startup created 3 years ago by POST Group with the promises to deliver innovative KYC managed services. As highlighted by the KYC Office Director of the bank, “our collaboration started back in 2018, with the goal to offer a new user experience to our clients as well as an innovative customer journey. It actually bothers clients to fill in the same documents at different times of their relation with their banks: for instance, they can now allow the sharing of their information, in a secure and confidential environment. As an enabler of data acquisition, this solution allows us to concentrate on our core business while trusting i-Hub and its innovative KYC outsourcing services”.