Markit (Nasdaq: MRKT), a leading global provider of financial information services, today announced the launch of its Know Your Third Party (KY3P™) service hosted by Dell Cloud Services . KY3P™ is the first centralised, cloud based data hub that simplifies and standardises third party risk management processes focusing on vendor due diligence and ongoing monitoring.

Created in partnership with banks, buyside firms and third parties, the patent-pending KY3P™ service will be positioned to drive industry standardisation of risk management practices to facilitate effective operational risk management of third party products and services. It will help institutions and third parties keep pace with compliance and regulatory requirements.

Barclays, HSBC and Morgan Stanley will be working with Markit to onboard their third parties onto the data hub. Dell is an early adopter of the service and will be actively onboarding its own third parties.

KY3P™ will allow third parties to increase speed to market, remove barriers to entry and be ready to transact more efficiently. The KY3P™ data hub will include standardised due diligence questionnaires, external audit capabilities and Significant Event Notification and Tracking (SENT), which allows firms to manage industrywide events, such as cyber security or business continuity incidents, quickly and effectively without duplicative efforts.

KY3P™ also provides due diligence information such as financial details, stability ratings and audit reports, enabling institutions to perform their own risk assessments on third parties more effectively.

“KY3P™ represents a unique offering in managing vendor risks,” said Sameer Kishore, vice president and global general manager, banking, financial services and insurance at Dell Services . “As an organisation we see tremendous benefits in this platform both as a consumer and a supplier of third party risk data. We are actively encouraging our vendors to become part of the network platform as well.”

“KY3P™ is a powerful innovation with huge potential, not only in the fintech ecosystem, but for firms of all sizes who have multiple vendor relationships,” said Mark Beeston, managing partner and founder of Illuminate Financial Management, a capital markets fintech venture capital firm. “Raising the profile of growing fintech firms, clarifying standards for customer onboarding and easing time to market are all critical factors for success, so this represents a real win-win for all participants.”

“Third party risk management processes are bilateral in nature, time consuming and repetitive,” said Michele Trogni, managing director, cohead of Solutions at Markit. “KY3P™ will transform many aspects of third party risk management, and we are very excited with the opportunity to build a network that differentiates key metrics like ‘time to market’ and ‘critical event management’ effectiveness.”

KY3P™ is delivered as a Software as a Service using the Dell Cloud Dedicated Service platform, including managed infrastructure and applications services. KY3P™ is hosted within Dell’s data centres and is compliant with industry-best security practices and processes.