Markit and Genpact Limited have debuted a new "know your customer" service to help banks deal with heightened regulatory challenges and risks. The product was designed in collaboration with Citigroup, Deutsche Bank, HSBC and Morgan Stanley.

KYC Services will collect legal entity data and documents that banks require from their clients to comply with KYC and anti-money-laundering rules. By standardizing the collection of KYC information, financial institutions can reduce operational risk and lower costs, the two companies said in a press release.

KYC Services will also perform scheduled proactive data revalidations.

"The combined capital markets technology, data analytics and domain expertise from Genpact and Markit, along with the insights provided by our banking partners, has led to a service that marks an inflection in the way business process services are delivered and changes how the industry manages a core function," said Monty Singh, senior vice president of capital markets and IT services for Genpact, in a news release.

Banks currently trading in the U.S. and U.K. can utilize KYC Services. But the product will expand to other countries in the near future, according to the companies.

Asset managers, corporations and hedge funds do not need to pay a fee to use the portal to submit and share information with banks participating in the KYC service, the press release said.