Major US banks form third-party risk company
Written by Anthony Strzalek
A consortium of major US banks has announced the formation of a new company, TruSight, which will provide third-party risk assessment services.
The consortium includes American Express, Bank of America, JPMorgan Chase and Wells Fargo.
TruSight aims to simplify the process of conducting third-party risk assessments of suppliers and partners across the financial services industry.
The new firm will be headed up by Abel Clark, who has more than 20 years of experience running financial technology and information services businesses, and was most recently global managing director for Thomson Reuters' $5 billion financial business.
Currently the industry lacks a simple and comprehensive approach to gather and validate third-party risk assessment information, according to the consortium. This causes financial institutions and third parties of all sizes to spend valuable resources requesting, providing and validating assessment information in an inefficient and duplicative manner.
TruSight aims to address these challenges by gathering information critical to thoroughly evaluate a service providers’ risk profile, including information security, technology, hiring practices and governance among others.
This information is stored on a secure, shared platform available to financial institutions of all sizes, including investment banks, wealth management firms, asset managers, credit card companies, insurers and community and regional banks.
Abel Clark, CEO of TruSight, said: “We are breaking new ground in the financial services industry by creating a consistent and efficient process for assessing third-parties. TruSight's unique approach brings together industry participants and harnesses their collective expertise, allowing us to ensure the same high standards are met across the board.
“This inclusive, cross-industry effort will also simplify and streamline the third-party risk assessment process for financial institutions and their suppliers, delivering real benefits for all.”