Any private sector company are mandated to require KYC, and Bank was one of the private company or regulated based category as well.
Meaning, requiring their client to submit it to them is just a normal for them to do so. In short, Bank companies are centralized based concept.
But there should be a limit as to what they should be asking, I mean there are some that are even trying to pry in the personal life for their KYC. I don't mind KYC as long as I can do it in an hours or minutes time and it should be so easy that even a toddler will be able to follow their procedures.