Six Nordic banks have secured European Commission approval to develop a joint platform to manage Know Your Customer (KYC) data.

The lenders which joined forces for the initiative include Danske Bank, DNB Bank, Nordea Bank, SEB, Svenska Handelsbanken and Swedbank. The move to establish Nordic KYC Utility is driven by need to standardise processes for handling KYC data.

Nordic KYC Utility:  The partner banks have established a joint venture (JV) company, Nordic KYC Utility, to develop the KYC platform.  The JV is equally owned by all six stakeholders and is slated to launch next year. It will operate independently. Initially, it is expected to offer KYC services to the large and medium-sized companies based in the Nordic region.

Nordic KYC Utility interim CEO Fredrik Millde said: “The collaboration between all banks has been both effective and successful. Together, we have in a short period of time worked on a Nordic KYC utility standard for compliant KYC information and explored alternatives for a future digital solution.  “As we have now received the green light from the European Commission, we are ready to move forward with our plans.”

Once operational, the JV will look to improve customer experience by simplifying the KYC processes. Additionally, it will also help in combatting financial crime in the Nordics region.