Major US financial institutions including American Express (Amex), Bank of America (BofA), JPMorgan Chase and Wells Fargo have established a new company that will carry out risk assessments on suppliers and partners.
The new firm, called TruSight, will gather information on service providers’ information security, technology, hiring practices and governance. It will then verify the information through remote or on-site validation.
The gathered information will be stored on a secure, shared platform and will be available to financial institutions of all sizes, including investment banks, wealth management firms, asset managers, credit card companies, insurers and community and regional banks.
Founders of TruSight have hired Abel Clark to lead the new venture. He has over 20 years of experience in managing financial technology and information services businesses. He most recently served as the global managing director of Thomson Reuters’ $5bn financial business.
Clark 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.”