Twelve regional US banks have joined KY3P, a cloud-based network for assessing and monitoring third party vendor risk.

Established by IHS Markit in 2015 with the support of Barclays, Goldman Sachs, HSBC, Morgan Stanley and UBS, the Know Your Third Party hub aims to simplify and standardise third party risk management processes focusing on vendor due diligence and ongoing monitoring.

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.

Wih financial regulators increasingly focusing on the risks involved in third party tech supplier deals, the hub offers a means for banks to share due diligence information and monitor ongoing business continuity incidents or cyber breaches among key suppliers.

For suppliers, KY3P provides a mechanism that minimises the burden of responding to duplicative due-diligence requests from financial institutions.

“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. “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.”

KY3P competes directly with TruSight, a similar platform set up in November 2017 with input from American Express, Bank of America, JPMorgan and Wells Fargo.