Investment bank and financial services juggernaut JP Morgan has revealed it is using blockchain technology to improve money transfers between banks globally.
The company will use the Confirm technology to bolster global money transfer synergies, including payments originating from Taiwan banks to banks in other markets.
According to JP Morgan, Confirm is expected to help cut the number of rejected or returned transactions caused by mismatched payment details through the technology’s improved information exchange. The technology will also apparently lower costs for both the sending and receiving banks.
The company also noted partner banking institutions will be able to request confirmation of the beneficiary account information and receive responses directly from other participating banks receiving the requests in near-real-time. Once the information is validated, the payment can be sent through PayDirect – JP Morgan’s global clearing solution – to route the payment in the most efficient manner.
JP Morgan commented, “The efficiencies offered by the Confirm and PayDirect solutions are expected to help improve straight-through processing rates, increase transparency and enhance their customers’ end-to-end payment experience by reducing returns. Testing is underway with 12 Taiwan banks, including Taiwan Cooperative Bank, First Commercial Bank, the Shanghai Commercial & Savings Bank, Mega Bank, Taipei Star Bank, Taiwan Shin Kong Bank, CTBC Bank, for money transfers via PayDirect into Indonesia.”
JP Morgan vice chairman for Asia Pacific and CEO for Taiwan Carl Chien said, “We are delighted that J.P. Morgan’s leading-edge blockchain technology, combined with our global infrastructure, is helping our clients in Taiwan address unique challenges pertaining to cross-border transactions. We have been listening to our clients and will continue to invest in new products and services to meet their needs, as we did in the past 50 years.”
JP Morgan recently took part in an investment round for Brooklyn-based blockchain technology firm ConsenSys. The company was joined by other big players in the round such as Mastercard Inc and UBS Group AG.
Copyright © 2021 FinTech Global