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JP Morgan: Eliminating the Friction of Cross-Border Payments

When Christine (Jang) Tan speaks to us from her office in Singapore, she has just returned from Sibos – the landmark financial conference held in Amsterdam. This is a major event for JP Morgan. Indeed, several company executives participated in panel discussions and panel discussions at the conference, held in person for the first time in three years.

JP Morgan introduced Confirm powered by LIINK, a global account validation service designed to improve the efficiency of cross-border payments. Confirm runs on the ONYX platform, the company’s blockchain division. Confirm is the world’s first bank-led peer-to-peer blockchain network, capable of verifying over 2 billion bank accounts from over 3,500 financial institutions1,2.

“We power solutions that meet customer demands globally – that means they need to be nimble, nimble and frictionless,” says Jang. “We have this capability because we can leverage global infrastructure and integrate local best practices into our solutions, customizing them to specific customers and industry segments, including strategic partnerships to enable a payment ecosystem end to end. We also presented our customized cross-currency proposal for banks, fintechs, corporates and non-bank financial institutions.

JP Morgan, led by the ONYX team, was also present at the Fintech Festival in Singapore. As a key foreign bank, the team works closely with various central banks around the world, including the Monetary Authority of Singapore. The goal is to support new areas of innovation by leveraging blockchain technology, with the goal of enabling the movement of money to be faster, better, more cost-effective, and to happen securely.

Jang works in JP Morgan’s Payments business, leading Financial Institutions Group sales in the APAC region. Not only is payments a key part of JP Morgan’s efforts to redefine the future of finance, but APAC is also a region that has always been at the forefront of innovation with real-time payments and continues to grow. to be a torch bearer to this day.

Impressive credentials underscore JP Morgan’s stature

“We operate with an in-country presence in 16 markets,” says Jang. “We support 18 markets from a customer segment perspective in Asia.”

And then, of course, they move their streams globally. In APAC alone, the Payments business operates hubs in Manila and Mumbai, which facilitate some of the treasury and transaction processing services that JP Morgan performs on behalf of its clients.

JP Morgan is considered the world’s leading US dollar clearing bank, processing nearly US$10 trillion in payments daily.

With such large volumes at stake, the company is acutely aware of its responsibilities when it comes to cybersecurity and protecting customers’ money. “This aspect of cybersecurity is very critical and in our dealings with all banks it is one of their top priorities – having not only a trusted partner who innovates, but the ability to execute securely,” Jang says. “It’s very critical, especially in Asia where you have a lot of central banks as well as regulators and a complex landscape.”

Absolute volume means cyber becomes the primary focus

This duty of care is accompanied by the levels of good practice expected: large financial institutions such as emerging fintechs expect their partners to act in an irreproachable manner, particularly when it comes to complying with legal and regulatory obligations or protect systems against attacks. “While we share best practices, we also expect the same from companies [that we partner with] respecting certain standards. It’s really to protect the whole community.

When discussing how JP Morgan is likely to invest its resources in the future, Jang says, “We need to continue to grow, and there needs to be a cyber component that we continue to invest in. On the blockchain, the use cases will continue. and we’ve used Confirm as one of our apps for banks, non-bank financial institutions, businesses, and fintechs.

“We also recently had the announcement with VISA B2B, which will leverage Confirm to facilitate their cross-border payment flows as well.”

When you work on such an astronomical level, you need bright stars to inspire you. At JP Morgan, Jang says she admires Takis Georgakopoulos, the global head of JP Morgan’s payments division. “He was previously my boss when he led the corporate banking business for multinationals and brings unique strategic experience to his current role. His vision of bringing together four distinct businesses under one payments umbrella is what sets us apart today. ‘today, enabling the bank to provide our customers with end-to-end payments, cash management and trade finance capabilities. Today, we process nearly $10 billion in payments daily across more than 120 currencies and over 160 countries around the world, and we’re just beginning this journey.

Originally from Singapore, Jang is also inspired by the country’s late founding father and first prime minister, Lee Kuan Yew. “Mr. Lee put Singapore on the map and the financial services industry flourished under his leadership,” says Jang. his career at the head of the country.”

JP Morgan’s ‘Three Cs’ Approach to Payments

Within its Asia-Pacific payments business, JP Morgan takes an approach that Jang calls the “three Cs”: customer, collaborator and competitor.

On the client side, the firm is obsessed with innovation to support its clients in the deployment of new functionalities. JP Morgan is co-founder – alongside the Singaporean bank DBS and the sovereign wealth fund Temasek – of an entity called Partior. Partior’s vision is to facilitate multi-bank settlement on the blockchain in multiple currencies. The company has facilitated live transactions for the settlement of Singapore and United States dollars, and is in the process of adding settlement banks to facilitate additional currencies, including Euro, Japanese Yen and Chinese Renminbi .

For JP Morgan, collaboration is key to growth in the payments industry. A prime example is the partnership with European automaker Volkswagen to create Mobility Payments Solutions, focusing on the future of cars and how payments can drive innovation in the automotive segment. The company continues to seek other partnerships it could leverage in Asia, whether with fintechs, aggregators, financial institutions, non-banks or corporates. The company has also led strategic acquisitions and alliances with Cleareye.AI, and the latest regional partnership was with In-Solutions Global (ISG), a leading provider of payment solutions.

“These are aspects of collaboration where we would look at whether we want to partner with them, invest in them, and then leverage their technology to ultimately support our solutions,” says Jang.

Finally, on the competition, JP Morgan does not let its size or scale cloud its judgment of its rivals in the market. “It’s clear that we are facing competition, with fintechs becoming more mainstream these days,” says Jang. “But I think the competition is healthy. Ultimately, it’s about benefiting consumers who have the ability to choose their payment options, whether through banks, wallets or fintechs. And JP Morgan wants to be part of partnerships that benefit customers.

Blockchain, a key driver of payments

Jang is a firm believer in the possibilities offered by blockchain and expects decentralized technology to be a key pillar of JP Morgan’s strategy as the company prepares for the future of payments. Jang explains, “We are working globally on opportunities to leverage technology and apply it to various requirements and solutions – whether on the front of markets, tokenization, real-time money movement and cross-border payments”.

In addition to using SWIFT and ISO as payment rails for cross-border transactions, JP Morgan is looking to improve real-time data sharing with Liink – the world’s first production-grade, bank-led peer-to-peer system. blockchain network for sharing information – and Confirm, an app for global account validation. This will reduce lead times for banks, reducing laborious tasks that must be done manually while reducing rejection rates at the same time.

The company works with many different companies to facilitate the cross-border exchange of this data in different corridors, particularly with regard to the demand for remittances associated with foreign workers, who wish to send money home to markets like Indonesia, India, Bangladesh and Sri Lanka to support their families and communities. JP Morgan expands service to the Philippines, Vietnam and Thailand.

As she looks to a promising future – a future in which JP Morgan will undoubtedly play a central role – Jang perfectly sums up the precise direction of her payments team in Asia Pacific: “We believe that payment solutions transparent and secure can help our customers and their business grow, diversify and prosper by enabling businesses, financial institutions and consumers to pay anyone by any method or channel from anywhere, This is no mere brief – end users want it all, and they want it now – but if there’s one company that has the track record to make it happen, it’s JP Morgan.

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