SIBOS - Atlanta, October 12, 2004 - JPMorgan Treasury Services, www.jpmorgan.com/ts, a unit of JPMorgan Chase Bank and a leader in global payments, trade finance and treasury management, today announced the launch of its Global Payments Infrastructure (GPI) solution. JPMorgan's outsourced clearing solution empowers financial institutions to reduce unit cost per transaction and increase capabilities, while maintaining regulatory compliance and mitigating risk.
GPI is a modular solution that allows financial institutions to replace their existing USD funds transfer infrastructure with JPMorgan's industry-leading USD clearing components, such as Web-based initiation and private-labeled service tools, wire processing, funds control, position management and reconciliation support with their existing technology. Although direct link clearing options were previously available to JPMorgan clients, this is the first time that a comprehensive suite of clearing technology and operating services is available to the market as a single product set. Two financial institutions, one international and the other domestic, are currently in the process of adopting JPMorgan's GPI solution to enhance their USD clearing offerings to customers.
"Through our Global Payments Infrastructure solution, financial institutions can more effectively reallocate capital and resources to address their core business and growth opportunities," said Thomas Halpin, USD Clearing Business Executive for JPMorgan Treasury Services. "As the global leader in USD clearing with up to $2.3 trillion processed every day, JPMorgan is uniquely qualified to host a funds transfer technical solution that truly meets today's challenging operating environment and commoditized payments market."
JPMorgan's GPI offers financial institutions significant benefits, such as:
- Reaping the benefits of partnering with the industry leader in payments clearing, which will result in:
- Reduced unit cost by as much as 50 percent
- Moving from a fixed to variable cost structure
- Eliminating investments in operating platforms in order to comply with regulatory and market requirements
- Gaining access to industry-leading products and services
- Retaining the advantages of direct clearing membership, allowing continued visibility in the market without incurring counterparty risk
- Enhanced risk management that helps ensure business continuity, plus access to the latest technology and process controls to protect the assets and reputation of the client
- Generating new revenues and improved client satisfaction
"JPMorgan's Global Payments Infrastructure solution is built on proven technology and delivered by an experienced team with proven results," explained Halpin. "Through this offering, client financial institutions will gain access to our best in-class products, with the global scale and rigorous risk management controls that have helped JPMorgan maintain its position as the world's largest U.S. dollar clearer."
About Global Payments Infrastructure
JPMorgan's GPI offers two service models. Through the Application Service Provider model, JPMorgan hosts a funds transfer technology solution on behalf of a financial institution, while that client continues to provide the operating and/or service resources required to execute its clearing activity. With the Business Process Operating Services model, JPMorgan hosts the technology solution, as well as provides the business processing and/or servicing, including investigations, repairs and other day-to-day operations that support the client's clearing activity. This offering is tailored to the strategic objectives and operational needs of the client. Both models allow the client to maintain their autonomy as a direct clearer, while taking advantage of JPMorgan's market-leading USD clearing solution.
About JPMorgan Treasury Services
JPMorgan Treasury Services (www.jpmorgan.com/ts) is a full-service provider of innovative treasury, cash management, liquidity, trade finance and information solutions to corporations, financial services institutions, middle market companies, governments and municipalities worldwide. As a leader in U.S. dollar and cross-border payments, JPMorgan Treasury Services processes as much as $2.3 trillion in U.S. dollar wire payments daily and has been the number-one ACH originator since the inception of the network some 28 years ago. With more than 50,000 clients and a presence in 36 countries, JPMorgan Treasury Services is the world's largest global provider of treasury management services.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.1 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, J.P. Morgan Chase & Co. has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the worlds most prominent corporate, institutional and government clients. Information about the firm is available on the Internet at www.jpmorganchase.com.
