Unleashing value from the global payments ecosystem

Feb 7th 2017 |

[ADVERTORIAL] Financial services technology disruption is grabbing headlines, including transformation of the payments ecosystem. As this trend continues, a new picture of nirvana is emerging:

  • Payments become nearly instant with complete information and total payment visibility
  • End-to-end process automation for reconciliation and other functions becomes possible
  • Beyond transaction details, enriched data could be linked to a transaction to allow easier, more accurate auditing of supporting documentation for a payment
  • Payments link seamlessly to FX conversion and liquidity management. Companies could have anytime, anywhere, near-instant global access to their funds and related information. Cash could be in continual motion to meet a company’s working capital needs worldwide.

A new level of connectivity and collaboration will enable banks to deliver solutions seamlessly and dramatically enhance the client experience. As fintechs enter the payments space, banks are selectively partnering with them on next-generation capabilities. Much like we worked together with other banks to develop global-reaching payments networks, we are strategically engaging with fintechs to bring our vision for the global payments ecosystem to fruition.

Back to reality

As technology rapidly evolves many areas around payments will need to be resolved including:

Integration

New technologies probably won’t connect simply and directly into existing banking platforms and systems. Banks and clients alike will need to set aside both time and funds to achieve seamless integration in the long-run.

Governance

Rules will need to be developed, if they don’t already exist, outlining protocols for every type of scenario.

Security

As the financial industry embraces the evolving landscape, new threats will emerge and security implications must be thoroughly explored and addressed.

Data mining

A key focus will be how to make enhanced data readily available so clients can ingest the information in a suitable way for their organization.

Beyond efficiency, speed and cost effectiveness

New technologies coupled with the collaboration of banks and fintechs could revolutionize the speed and efficiency of global payments. Beyond speed and efficiency is the ability to harness vast amounts of data and glean actionable insights into how to more cost efficiently manage payments, FX and liquidity.

Investing in technologies

J.P. Morgan is investing in a basket of new technologies and working with fintechs to advance and enhance the payments ecosystem.

Significant Investment:

  • USD 2 billion in technology and security controls
  • USD 600+ million in cyber capabilities
  • USD 100+ million to redefine treasury solutions

Innovation:

  • Our in-house Blockchain Center of Excellence developed and open-sourced Quorum in November 2016. Quorum addresses specific challenges to blockchain adoption within the financial industry, and beyond
  • J.P. Morgan has invested in API and cloud to deliver next generation flexibility, transparency and data integration for a seamless, enhanced connectivity to the bank
  • In-house build of a global payments platform significantly enriching the client experience through:
    • Modern architecture design
    • Streamlined and real-time processing
    • Big data analytics

What should you be doing NOW to leverage innovation in payments?

The accelerated pace of innovation makes it imperative that corporate treasuries be thoughtful about new investments to be prepared for new ways to transact. Ongoing developments could enable significant leaps in how you manage your global payments. MAKE SURE TO:

  1. Work with your banks to map out your current pain points in making and receiving global payments. Identify interim solutions that will address today’s challenges, while effectively bridging to new solutions in the future.
  2. Understand how your banks are approaching and connecting to technology, such as APIs and the cloud, to drive global payments efficiency.
  3. Speak with your IT group to understand how it is leveraging new technology today to interact among your company’s own systems and with your banks.
  4. Build flexibility into new investments to be prepared for new ways to transact.

Want to hear more?

To learn more about how to handle the challenges and realities of releasing value from the payments ecosystem, join your peers in San Francisco on Thursday 2 March 2017. EuroFinance's West Coast conference, is focused on helping the treasury teams of both high-growth companies and established MNCs manage rapid international growth.
  


To learn more about how J.P. Morgan Treasury Services can help you protect, manage and grow your business globally, please contact your representative or visit us at jpmorgan.com/treasuryservices.

J.P. Morgan is the marketing name for the Treasury Services business of JPMorgan Chase Bank, N.A. and its affiliates worldwide. © 2017 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC

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