Research Reveals That Wide Adoption of Legal Entity Identifiers Could Save Banks an Estimated U.S.$2-4 Billion per Annum in Client Onboarding Efficiencies

---

I herewith confirm that I read, understood and accepted the privacy policy. I hereby confirm that data which I typed and clicked might be sent to social network owners and saved and electronically processed by them.

---

Research conducted by McKinsey on behalf of the Global Legal Entity Identifier Foundation (GLEIF) has concluded that wider use of Legal Entity Identifiers (LEIs) across the global banking sector could save the industry U.S.$2-4 billion annually in client onboarding costs alone. With estimated total industry spend on client onboarding equal to U.S.$40 billion per year, productivity improvements gained through LEI usage could generate cross-sector cost reductions of between 5-10% annually.

LEIs are already used in capital markets globally, where regulators have mandated their use for reporting over-the-counter derivatives transactions. The research, however, makes it clear that the ability of LEIs to simplify entity identification in the digital age has the potential to unlock substantially more quantifiable value for banks in the near to mid-term. To realize this value, the report recommends that banks use LEIs to support all stages of the customer management lifecycle, not just in capital markets but across all banking business lines, such as trade financing, corporate banking and payments.

Download press release as PDF
Download eBook summary
Download infographic