Bank workloads are on the increase, writes Michele Gentile, head of FI clearing sales at UniCredit, in Global Banking & Finance Review. While they must accompany their corporate clients as they pursue opportunities in new markets, banks must also accommodate stricter Know Your Customer (KYC) and Know Your Transaction (KYT) regulations, which require them to carry out extensive research on their counterparties.
It’s a combination that threatens to leave banks with a considerable workload, but, fortunately, there are ways to lighten the load. The key principle here is collaboration – with banks sharing the work among themselves. For instance, banks can collaborate on clearing services, with trusted partner banks assuming counterparty exposure for certain transactions and therefore taking on the associated compliance responsibilities.
Working together in this way promises to improve banks’ client services too, with partners able to integrate value-adding services as part of the clearing arrangement.
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