JPMorganChase has achieved straight-through processing to share loan data and improve efficiencies, reduce errors and delays in loan processing.
Straight-through processing (STP) allows JPMorgan to digitize all information flowed on Versana, a syndicated loan platform, ranging from emails to faxes. This gives stakeholders access to the information, reduces human error and saves resources, Joseph Ferraiolo, head of debt capital markets operations and merchant bank policy at JPMorgan, told Bank Automation News.
Versana uses APIs to digitally provide information to lenders to reduce scraping delays and inconsistencies within the loan processing and services systems, Cynthia Sachs, chief executive officer of Versana, told BAN.
Versana worked with JPMorgan’s tech team to achieve STP, a process that usually takes a few weeks or months, Sachs said.
“We have created our own internal utilities that we install at the banks on the agent side so the data can flow in digitally, and the technical lift is relatively light compared to other implementation of systems and software,” Sachs said, adding that multiple other financial institutions are also working with Versana to achieve STP.
Since its launch in December 2022, Versana has processed $2.1 trillion in loan commitments on its platform and has financial institutions including JPMorgan, Citi, Credit Suisse and Bank of America as founding members of the platform, Sachs said.
Advancements like STP in the syndicated loan market are a big feat as they can help make operations efficient and in turn help grow the debt markets landscape, Ferraiolo said.
THE BIGGER PICTURE: As New York-based JPMorgan looks to improve its debt lending capabilities, the bank has recorded consumer and community banking expenses of $9.4 billion in the second quarter, up 13% year over year, Chief Financial Officer Jeremy Barnum said today during the bank’s earnings call.
The increase in spending was attributed to First Republic technology, personnel and marketing integration costs, Barnum said.
BY THE NUMBERS: In Q2, JPMorgan reported;
- Net interest income of $22.9 billion, up 4% YoY;
- Technology and communication expense of $2.4 billion, up 8% YoY;
- Mobile banking users of 55.5 million, up 7% YoY; and
- Revenue of $50.2 billion, up 22% YoY.
NOTEWORTHY: JPMorgan continues to invest in and implement new tech as part of its modernization process.
Most recently, the bank has backed Partio, a blockchain based payments company also backed by Deutsche Bank and Standard Chartered Bank, to help it raise $60 million in series B funding from Valor Capital Group and Jump Trading Group, according to Singapore Partio’s July 12 release.
JPMorgan is already using Partio’s solutions to facilitate cross-border payments for their customers, the release stated.
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