It's institional. The banks clients, corporate endowments, nonprofits, whenever they do work with the bank they need to be KYCed. Banks have multple desks set up trying to KYC customers for whatever process, so they'll reach out to all the trading firms. That same process is also going on next door at the other bank, and so on. So if you are a trading firm you are receiving mutpliple requests from banks all the time to keep current.
So yes, banks now have acccess to centralized source of information, which saves them time, but the efficiency this creates within the industry really stems from doing this centrally on behalf of multiple institions. Now trading firms can put the data out there only once, and updating it only upon request from the Markit|Genpact service.
The KYC.com site says the service is free to the buy side, there is no fee to use the portal to submit and share KYC information with banks participating in the service.